Over the next three years, Dixon is slated to inject an investment exceeding 4 billion rupees, which translates to approximately $48.2 million, into this expansive factory, covering an area equivalent to six football fields, spanning over 300,000 square feet. Individuals familiar with the situation, opting for anonymity due to the confidential nature of the matter, have disclosed that the primary objective of this facility will be the production of Xiaomi smartphones. The official inauguration of this plant is anticipated later this month, with a government official set to preside over the event.
The decision to engage Dixon for smartphone assembly arises from India’s firm insistence on Chinese companies localizing their operations, encompassing manufacturing and device distribution. Consequently, Xiaomi’s previous partners in India, including Taiwan’s Foxconn Technology Group’s Bharat FIH and China’s DBG Technology Co., are bracing for a decrease in their business opportunities.
- Advertisement -
Neither Xiaomi nor Dixon has released official comments regarding this development.
This latest endeavor follows a similar move earlier this year when Xiaomi awarded a contract to India’s Optiemus Electronics Ltd. to manufacture Bluetooth neckband earphones, a product previously imported from China.
While Xiaomi once enjoyed unchallenged leadership in India’s smartphone market, it encountered setbacks due to heightened regulatory scrutiny and an expansive product portfolio. The company has acknowledged that this expansion led to customer confusion.
India, as the world’s second-largest smartphone market, attracts fierce competition from major global phone brands, including Apple Inc., which is striving to boost its sales in the world’s most populous nation. Xiaomi aims to stage a gradual resurgence by concentrating on delivering affordable 5G smartphones manufactured locally.
- Advertisement -
For Dixon, a homegrown enterprise, its partnership with Xiaomi represents another significant stride in its journey to establish itself as India’s counterpart to Foxconn. Foxconn is renowned as Apple’s Taiwanese supplier and is best known for its role as the key manufacturer of iPhones. Founded by Sunil Vachani, a well-dressed entrepreneur often seen in smart jackets or formal suits, Dixon commenced its journey three decades ago with borrowed funds in a rented shed on the outskirts of New Delhi. Today, it has evolved into a rapidly expanding electronics company, producing a diverse range of products, including smartphones, washing machines, and television sets, for prominent brands such as Motorola and Samsung.
Dixon Technologies India Ltd., a supplier for Xiaomi Inc., is on the verge of unveiling a massive new manufacturing facility located on the outskirts of New Delhi. This development aligns with India’s intensified efforts to encourage collaboration between Chinese tech companies and local assembly partners.
Over the next three years, Dixon is slated to inject an investment exceeding 4 billion rupees, which translates to approximately $48.2 million, into this expansive factory, covering an area equivalent to six football fields, spanning over 300,000 square feet.
Individuals familiar with the situation, opting for anonymity due to the confidential nature of the matter, have disclosed that the primary objective of this facility will be the production of Xiaomi smartphones. The official inauguration of this plant is anticipated later this month, with a government official set to preside over the event.
The decision to engage Dixon for smartphone assembly arises from India’s firm insistence on Chinese companies localizing their operations, encompassing manufacturing and device distribution. Consequently, Xiaomi’s previous partners in India, including Taiwan’s Foxconn Technology Group’s Bharat FIH and China’s DBG Technology Co., are bracing for a decrease in their business opportunities.
Neither Xiaomi nor Dixon has released official comments regarding this development.
- Advertisement -
This latest endeavor follows a similar move earlier this year when Xiaomi awarded a contract to India’s Optiemus Electronics Ltd. to manufacture Bluetooth neckband earphones, a product previously imported from China.
While Xiaomi once enjoyed unchallenged leadership in India’s smartphone market, it encountered setbacks due to heightened regulatory scrutiny and an expansive product portfolio. The company has acknowledged that this expansion led to customer confusion.
India, as the world’s second-largest smartphone market, attracts fierce competition from major global phone brands, including Apple Inc., which is striving to boost its sales in the world’s most populous nation. Xiaomi aims to stage a gradual resurgence by concentrating on delivering affordable 5G smartphones manufactured locally.
For Dixon, a homegrown enterprise, its partnership with Xiaomi represents another significant stride in its journey to establish itself as India’s counterpart to Foxconn. Foxconn is renowned as Apple’s Taiwanese supplier and is best known for its role as the key manufacturer of iPhones. Founded by Sunil Vachani, a well-dressed entrepreneur often seen in smart jackets or formal suits, Dixon commenced its journey three decades ago with borrowed funds in a rented shed on the outskirts of New Delhi.
Today, it has evolved into a rapidly expanding electronics company, producing a diverse range of products, including smartphones, washing machines, and television sets, for prominent brands such as Motorola and Samsung.
