Dixon Technologies proposes partnership with Xiaomi to produce and export phones

Electronic manufacturer Dixon Technologies (India) Limited has proposed a partnership with Xiaomi India to produce and export Xiaomi mobile phones. The proposed partnership will be formalized after certain agreements are fulfilled.

The manufacturing company made the announcement in a press release on Wednesday.

Rajeev Chandrasekhar, Union Minister of State for Electronics & Information Technology, Skill Development & Entrepreneurship, congratulated both companies on the proposed association.  

Atul B Lall, the Vice Chairman and Managing Director of Dixon Technologies (India), praised the progress of the Indian Electronic Manufacturing Service (EMS) industry. Lall pointed towards the trend of mobile phone manufacturers increasingly investing in manufacturing and stated that India was well positioned in the industry. 

“The Indian EMS industry has embarked on an upward journey. Now, with most of the global mobile phone manufacturers and their supply chain partners investing in manufacturing, the Indian EMS industry is well-positioned to unlock its true potential in the coming years,” he said

The Vice Chairman recognized the growth of Xiaomi in the Indian market, expressing excitement at the proposed association and what it meant for both companies. 

“Xiaomi, which has built a strong brand equity over the years in India is known for its high quality and efficiency is reckoned as a strong force in smart mobile phones market in India and people across the nations have strong faith in their products. We are ecstatic and encouraged by the trust they have reposed on Dixon for the proposed association,” he said.

“This partnership will leverage Dixon’s manufacturing excellence, superior execution track record and Xiaomi’s expertise & leadership in Indian business ecosystem and it represents a major milestone in Indian Governments “Make in India” initiative,” he added.

Once the partnership comes into effect, Dixon aims to start production of the Xiaomi smartphones by August. To achieve this, the company is setting up a new 320,000 square feet production facility in Noida. 

The development of this new partnership comes after the government asked the Chinese company to work with domestic manufacturers. By working with domestic companies, the government hopes to deepen the supply chain and avail the benefits of the production linked incentive schemes.