Dixon Technologies has forged a partnership with Taiwan-based Inventec to increase its IT hardware manufacturing business. Their joint venture, Dixon IT Devices Private ltd will be 60% owned by electronics manufacturer Dixon and 40% by Taiwanese original design maker (ODM) Inventec for IT hardware production.
Together via the new joint venture, the two companies will manufacture notebook PC products, servers, desktops and PC components in the country.
“The JV company will be engaged in the business of manufacturing of notebook PC products, desktop PC products, including component and servers in India,” Dixon mentioned in an exchange filing on April 30.
The deal marks the second such agreement for Dixon. Last year, Dixon had inked a similar partnership with Chinese firm Longcheer for the manufacturing and sale of smartphones for global brands.
The Taiwanese company makes products for leading PC brands, including HP and Dell.
The electronics manufacturer has planned to launch a dedicated facility as part of the joint venture, the Economic Times reported. Through their joint venture, the companies will focus on participating in the government’s Rs 22,000 crore production linked incentive scheme for electronic component manufacturing. All of Dixon’s subsidiaries being formed to produce components will apply for participation under the PLI scheme separately.
“This joint venture marks a significant milestone for Dixon as we expand our portfolio into high growth segments of notebooks & servers...we shall be striving to produce high-quality products while driving technological innovation and contributing to the development of India’s IT infrastructure,” said vice chairman and MD, Dixon, Atul B Lall.
Apart from this, via its joint venture, Dixon is planning to open a huge manufacturing park to make IT-related hardware products for its international clients. Inventec will reportedly offer its design capabilities for IT hardware.
According to a Times of India report, the IT hardware business is expected to grow over 2.5 times in the next two years and surpass $25 billion threshold in size, fueled government’s scheme and strong national and international demand.
