Padget Electronics Private Limited, a wholly-owned subsidiary of Noida-based Dixon Technologies, has entered into a partnership with Chinese smartphone manufacturer Xiaomi for the manufacturing of smartphones and other related products, according to the regulatory filing by the company.
The manufacturing shall take place at Padget's manufacturing facility situated in Noida, says the company. "It gives us immense pleasure to partner with Xiaomi which is an iconic brand. We are delighted and encouraged by the trust they have reposed in Dixon for the association and believe that this association will leverage our excellence, superior execution track record and Xiaomi’s expertise & leadership in the Indian business ecosystem and it represents a major milestone in Indian Government "Make in India" initiative," says Atul B Lall, vice chairman and managing director, Dixon Technologies Limited.
"We see them as an ideal strategic partner who shares our core values: quality, engineering, prowess and customer satisfaction. We are confident this is just the beginning of a long and prolific relationship and there is immense potential to further build on shared capabilities to deliver sustainable growth," he adds. He further states that Dixon’s wholly owned subsidiary, Padget Electronics is one of the few Companies who have received PLI scheme approval from the Government of India (GOI).
Xiaomi is one of the leading smartphone brands in the country. However, in the past several months it has been losing its market share to the likes of One Plus and Samsung, amidst heavy scrutiny by the government towards Chinese firms. In the April to June quarter of CY2023, Xiaomi cornered a market share of 11%, as against 17.6% in the same period last year, according to International Data Corporation (IDC). "Overall shipments to the online channel dropped by 15% YoY, while the offline channel grew by 11%, reaching a 54% share. Relatively lower shipment for the online-heavy players such as Xiaomi and Realme intensified this drop," says IDC. Through the partnership, Xiaomi is reportedly looking to bolster its presence in the country.
On Wednesday, the share price of Dixon Technologies surged as much as 3.9% to hit a 52-week high of ₹5,298.95 apiece on the BSE. The scrip closed at 3.69% at ₹5,248.20. During the session, the company’s market capitalisation stood at ₹31,475.08 crore with 56,930 shares exchanging hands on the BSE as against the two-week average of 0.23 lakh shares.
Notably, earlier this year, the company along with 39 other firms applied for manufacturing laptops, PCs and servers in India under the Production Linked Incentive (PLI) 2.0 Scheme for IT hardware. The scheme aims to create ₹3.35 lakh crore worth of additional production, adding that it'll have an investment of ₹2,430 crore and create direct employment of 75,000 in the period of six years.
