HP and Dixon to manufacture laptops in Tamil Nadu under PLI 2.0

In a boost to the country’s Atmanirbhar initiative, HP Inc. and Dixon Technologies' subsidiary, Padget Electronics, have signed a MoU to manufacture HP laptops, desktops, and all-in-one PCs in Tamil Nadu. Announced as part of the government’s PLI 2.0 scheme, this collaboration will have Padget Electronics oversee the manufacturing of these products, with details shared through a regulatory filing to the exchanges on Monday.

Electronics and IT minister Ashwini Vaishnaw hailed the HP-Padget MoU as a substantial step forward in India’s efforts to strengthen its domestic manufacturing capabilities at a media briefing yesterday.

"This is a major success for the PLI scheme under Prime Minister Narendra Modi ji's Make in India program," Vaishnaw said.

Padget Electronics is reportedly setting up a new 3,00,000-square-foot facility in Oragadam, Tamil Nadu. The facility will create approximately 1,500 jobs initially, playing a significant role in India's expanding electronics manufacturing sector. Once operating at peak capacity, the plant is expected to be capable of producing 2 million units annually.

“The electronics industry in India has grown leaps and bounds and today it is more than 10 lakh crore industry. This industry employs over 10 lakh people in the country and has emerged as a major exporting industry out of India. Initially, the factory will employ 1500 people and as production goes up, employment will increase too,” Vaishnaw said at a media briefing.

Vaishnaw also confirmed that the first HP laptop manufactured at this facility is expected to be shipped by February 2025.

“Through this partnership, we look forward to offering our customers in India an enhanced portfolio of domestically manufactured products that combine HP's cutting-edge technology with Dixon's manufacturing expertise,” said Ipsita Dasgupta, Managing Director, HP India.

Atul Lall, Vice Chairman and MD of Dixon Technologies, highlighted that the global brand's advanced technology and extensive presence combined with Dixon's manufacturing expertise, will enhance the availability of high-quality personal computing systems for Indian consumers.

The Production-Linked Incentive (PLI) Scheme 2.0 for IT Hardware, introduced on May 29, 2023, offers a 5% incentive on net incremental sales over six years to eligible companies to boost domestic manufacturing of laptops, tablets, PCs, and servers. The scheme promotes the localisation of components and incentivises semiconductor design and IC manufacturing.