Noida: Union Minister for Railways, Communications, Electronics & Information Technology Ashwini Vaishnaw recently revealed that the government’s Production-Linked Incentive (PLI) scheme has resulted in the creation of 500,000 jobs in the mobile phone industry.
The minister made this statement at the inauguration of Dixon Technologies (India)’s new smartphone manufacturing facility in Noida, Uttar Pradesh. He highlighted the positive impact of the PLI scheme, emphasising a surge in domestic value addition, reaching up to 60% in some products.
Dixon Technologies, recognised as India’s largest home-grown electronics manufacturing services player, commenced smartphone production for the Chinese device maker Xiaomi in the third quarter of the calendar year 2023 through its newly established manufacturing unit.
The new facility, operated by Padget Electronics, a wholly-owned smartphone manufacturing subsidiary of Dixon, spans 227,000 square feet and represents an investment of Rs 256 crore. With an annual production capacity of 25 million units, the facility is expected to accommodate 5,000 workers engaged in manufacturing smartphones and feature phones on a large scale.
Atul Lall, Vice-Chairman and Managing Director of Dixon Technologies, said, “We have a five-year-long association with Xiaomi India and are excited to start this new chapter that exemplifies synergy between our two organisations.”
The announcement comes at a time when the Indian government is encouraging Chinese smartphone makers to export from India, aiming to boost localisation in mobile phone production.
Sunil Vachani, Executive Chairman of Dixon Technologies, praised the state-of-the-art manufacturing facility, efficient production lines, and quality processes, expressing confidence in leveraging Xiaomi’s expertise in the Indian business ecosystem.
Dixon Technologies had previously partnered with Xiaomi India in May to manufacture and export Made-in-India smartphones. As of Q3CY23, Xiaomi is the fourth-largest smartphone brand in India, holding an 11.7% market share, according to data from the International Data Corporation.
This new facility is expected to play a crucial role in helping Dixon fulfill its manufacturing targets, as the company committed to a cumulative production value of Rs 48,000 crore in six years. Dixon Technologies has been declared eligible under the reworked PLI scheme for information technology products, contributing to the government’s target of additional production value of Rs 3.5 trillion collectively committed by 27 eligible companies in six years.
