Dixon signs deal to make laptops, PCs for HP

Top domestic contract manufacturer Dixon Technologies has signed an initial pact with HP India to make laptops, desktops, and all-in-one PCs, subject to signing definitive agreements.

This is the third global PC brand the contract manufacturer has been associated with, and a fourth brand is set to join soon, vice chairman and managing director, Atul Lall told ET.

The products for HP will be made by Dixon's wholly owned subsidiary Padget Electronics under the production-linked incentive scheme, according to an exchange filing made Monday.


Lall said the products will be made at the company's upcoming Chennai facility which will have a capacity of 2 million laptops in a year.

The company will also be producing laptops for Acer, and Lenovo at the facility which is set to become operational by Q4 FY25, Lall said.

The contract manufacturer is ploughing in Rs 250 crores in the facility, as part of its investment criterion in the revised production-linked incentive scheme, with the aim to employ around 1200-1500 people in the initial phase, the executive said.

Lall had earlier informed analysts during a recent earnings call that the site has been identified and resources have been acquired.

The commercials of the agreement are not known currently.

“We are excited to announce HP's partnership with Dixon Technologies to manufacture HP products under the Production Linked incentive scheme (PLI 2.0)," said Ipsita Dasgupta, Managing Director, HP India in a statement.

HP becomes the third global brand to start manufacturing its PCs under the PLI scheme, which has been marred by slow uptake as compared to the scheme rolled out for mobile phones. Previously, a top government official had told ET that 17 out of the 27 PLI-approved companies are expected to start production this fiscal.

The government has approved production plans from HP, Dell, Flextronics, Lava International, Lenovo, Netweb Technologies, and others under a revised PLI scheme where the total outlay and the incentives were increased to accommodate the industry’s demands.