Indian electronic goods contract manufacturer Dixon Technologies (India) Ltd on Wednesday (September 27) announced a major partnership through its subsidiary, Padget Electronics.
The company said Padget Electronics has entered into an agreement with Xiaomi Technology India Private Ltd for manufacturing smartphones and other related electronic products.
The phones will be manufactured in Padget's facility situated at Noida, Uttar Pradesh, according to a stock exchange filing.
The Xiaomi partnership is a boost for Dixon, which is among the companies vying to become India’s response to Foxconn — Apple’s Taiwanese supplier most famous as the key maker of iPhones.
According to a Bloomberg report, Beijing-based Xiaomi has been compelled to partner with Dixon for smartphone assembly because India is pressing Chinese companies to localise everything from manufacturing to distribution of devices.
Xiaomi was once an unrivalled leader in India’s smartphone market but lost steam after facing heightened regulatory scrutiny and overexpanding its product portfolio — which by its own admission confused customers.
India, the world’s second-biggest smartphone market, is a hotly contested region for the world’s largest phone brands, with manufacturers such as Apple competing to boost sales in the world’s most populous country.
Dixon Technologies is the largest homegrown design-focused and solutions company engaged in manufacturing products in the consumer durables, lighting, and mobile phones markets in India.
Shares of Dixon Technologies (India) Ltd ended at Rs 5,284.20, up by Rs 188.10, or 3.69 percent on the BSE.
(Edited by : Shoma Bhattacharjee)
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