Dixon Technologies subsidiary Padget signed an MoU with Asus

Dixon Technologies’ subsidiary, Padget Electronics, has recently signed a Memorandum of Understanding (MoU) with ASUS India to manufacture notebooks. This deal is part of the Production-Linked Incentive (PLI) 2.0 scheme, which plans to boost local manufacturing of IT products like laptops, servers, and tablets.

Strengthening Ties with Asus

Atul Lall, Vice Chairman and Managing Director of Dixon, shared his excitement about the partnership, calling Asus a perfect long-term partner. “Asus has built a solid global reputation with its advanced technology, and we see them as an ideal match for us in the notebook space,” he said. This new collaboration follows Dixon’s good line of partnerships in the mobile sector, with the company aiming to replicate this success in the IT hardware market.

Dixon already manufactures laptops for brands like Lenovo and Acer, and the partnership with Asus is expected to strengthen its position in the Indian market. The company recently started the New Product Introduction (NPI) process for Lenovo, with mass production scheduled to begin in Q3FY25.

Dixon’s Expansion Plans

Dixon isn’t stopping there. The company is also planning to establish a new facility in Chennai, with a projected annual capacity of 1.5 million units. The facility, expected to be operational by Q4FY25 or Q1FY26, will require a capital expenditure of around Rs 150 crore. Additionally, the company estimates that the addressable market for IT products in India is approximately Rs 80,000 crore.

Conclusion: All in all, this collaboration with Asus strengthens Dixon’s presence in India’s IT hardware space. With big names like Lenovo, Acer, and now Asus in their portfolio, Dixon seems well-positioned to make the most of the booming demand for locally manufactured tech. Their stock price, which has surged by around 170% over the past year, reflects the market’s confidence in their expansion and growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.