Homegrown electronics manufacturer Padget Electronics has signed an agreement with Lenovo-owned Motorola to manufacture smartphones for the company in India, a regulatory filing revealed. Padget Electronics is a wholly owned subsidiary of Dixon Technologies, and is among five domestic manufacturers who have been approved to receive benefits of the government’s new production linked incentive (PLI) scheme for smartphones.
Dixon CEO Atul Lall had earlier told Mint that the company was in talks with “large global players” for servicing not only domestic markets but also export markets. However, it is unclear how many phones the company will be manufacturing for Motorola and whether they will be exported, too. Lall had said the company plans to make 70 to 80 million smartphones per year in the next few years.
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Indian smartphone manufacturers have been building capacities ever since the government announced this scheme, which gives them 4-6% incentive for making phones in the country. Dixon’s competitors, including Lava and Micromax, have also been looking at increasing their production capacities in the country. The two companies have also been in talks with telcos in the US to make unbranded phones for them, taking advantage of trade tensions between the US and China.
The Indian government had earlier estimated that companies applying for the PLI scheme, which includes global giants such as Foxconn and Wistron, will produce goods worth Rs11.5 trillion in the next five years. About half of these are expected to be exported from the country. While Foxconn is already manufacturing iPhones for American giant Apple, in India, competitor Wistron’s contracts have been put on hold after a recent upheaval from workers in its Bengaluru factory.
Fellow Taiwanese manufacturing giant, Pegatron, is also in the process of setting up a factory in India.