Dixon Technologies' subsidiary Padget Electronics has been awarded a contract by Lenovo to manufacture IT hardware products under the production-linked incentive scheme (PLI) 2.0 in this segment. Once definitive agreement is signed between the two companies, the electronics manufacturing service provider will make notebooks and laptops for Lenovo.

Padget will begin the localisation efforts with printed circuit board assembly (PCBA) manufacturing, and will work along the schedule of the scheme in the subsequent years. Padget has applied under the hybrid category of the scheme which has an incremental investment component of Rs 250 crore over a span of six years.

Dixon is looking to start manufacturing for Lenovo in April 2024, initially at the newly opened 2.7 lakh sq. ft. facility. Later it plans to move to the under-construction larger facility of one million sq. ft. Dixon is investing Rs 250 crore in the plant, which will have a capacity to churn out over one million laptops annually.

The government has approved 27 companies under the revised PLI scheme. It also entails average incentive of one to four percent based on net incremental sales over the base year, with the option to get additional benefits for localising components.

The partnership would scale up localisation and facilitate component ecosystem and creation of employment opportunities in India, as stated by IT Minister Ashwini Vaishnaw. India's manufacturing competitiveness will geta  boost as Lenovo will bring in the global know-how to manufacture the products. Padget already manufactures IT hardware for Acer as part of the previous PLI scheme.