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Dixon inks deal with Nokia to make phones in India

Contract manufacturer Dixon Technologies India Ltd Monday said its subsidiary Padget Electronics has signed an agreement to manufacture Nokia smartphones at its plant in Noida, Uttar Pradesh.

The company has entered a manufacturing partnership with HMD India, which holds the rights to Nokia’s brand name in smartphones, Dixon Technologies said in a regulatory filing.

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“They have established a strong and trusted foothold globally, thanks to their advanced technology. We are sure that with their vision and stringent industry-leading processes, combined with our expertise in manufacturing, we will be able to bring a range of Nokia smartphones to customers,” said Atul Lall, vice-chairman and managing director of Dixon Technologies.

In December, Dixon had announced an agreement with Lenovo-owned Motorola to make smartphones in India.

“India is strategically important for us, not just as a market, but also as a sourcing and manufacturing destination, and we’re glad to be able to play a role in realizing the vision of Make in India and Self-reliant India. One hundred percent of Nokia phones sold in India are made in India and in this endeavour, we are glad to partner with Dixon Technologies India’s wholly owned subsidiary–Padget Electronics–as one of our smartphone manufacturing partners for India,” said Sanmeet Singh Kochhar, vice president, HMD Global.

Investors in HMD Global include Taiwanese smartphone manufacturer Foxconn, which also manufactures Nokia-branded feature phones in India. Google and Qualcomm too invested in HMD Global in August last year.

Lall told Mint in August that thecompany is in talks with “large global players” for servicing both domestic and global markets. The company has plans to manufacture 70-80 million smartphones per year in India in the next few years, Lall told Mint. Padget Electronics is among five domestic manufacturers who have been approved to receive the benefits of India’s new production-linked incentive scheme. The scheme offers smartphone makers cash incentives of 4-6% for making phones in India. The others are Micromax, UTL Neolyncs, Optiemus Electronics and Lava.

Industry experts say that homegrown companies like Padget are expected to benefit heavily from the PLI scheme.

The government had said it expects local and international companies who had applied for the scheme to produce 11.5 trillion worth of goods in the next five years.

About half of this was expected to be exported. Experts say that while companies like Foxconn, Pegatron and Wistron will likely ramp up production for Apple, homegrown companies stand to gain a lot too.

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