Homegrown Dixon Technologies, electronic manufacturing services company, will produce Xiaomi smartphones at its Noida factory, which was inaugurated by Union IT Minister Ashwini Vaishnaw on Thursday. Padget Electronics, a subsidiary of Dixon Technologies, has announced that the production of Xiaomi handsets will be done at its recently established Noida factory, backed by an investment worth Rs 256 crore, the media has reported.
This is likely to create approximately 5,000 new jobs. Dixon's manufacturing facility boasts an annual production capacity of 25 million units.
“We have seen complex manufacturing at the new Dixon facility which is an answer to those who say India is only assembling phones and not manufacturing them,” the minister was quoted as saying by news agency IANS.
Vaishnaw also acknowledged India's emergence as an smartphone export hub. This development comes in the wake of India encouraging IT hardware manufacturers to manufacture devices locally.
With the objective of exporting 30 per cent of the total production capacity within the next two to three years, Dixon Technologies has invested almost Rs 300 crore in its Noida plant for manufacturing Xiaomi smartphones, a report by GQ Prime mentioned.
"It is a momentous step towards our commitment to boosting the local smartphone manufacturing ecosystem in India. We believe that this association will leverage our excellence and superior execution and Xiaomi's expertise and leadership in the Indian business ecosystem," Sunil Vachani, Executive Chairman of Dixon Technologies was quoted as saying.
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To recall, earlier in may, Xiaomi and Noida-headquartered contract manufacturer Dixon Technologies joined hands, with an aim to manufacture mobile phones for exporting. Representatives from both firms had met Minister of State for IT, Rajeev Chandrasekhar with the proposed initiative. Xiaomi has been locally assembling most of the smartphones and TVs that it sells in the country.