In a significant development for India’s manufacturing sector, HP, the American technology giant, has signed a major contract with Dixon Technologies to produce laptops and desktops in India. This collaboration supports the Indian government’s “Make in India” initiative and the IT hardware production-linked incentive (PLI) scheme, which aims to promote local manufacturing. The production will take place at Dixon’s facility in Oragadam, near Chennai, according to Dixon Chairman Sunil Vachani.
Vachani announced that production is slated to begin by April next year. “The order from HP is a prestigious one and will significantly contribute to strengthening the government’s Make in India and Atmanirbhar Bharat (self-reliant India) initiatives,” Vachani said. While the scale of HP’s shift from imported to locally manufactured computers remains undisclosed, Dixon is expected to invest around ₹250 crore in the project, although Vachani did not confirm the exact figure.
Dixon already has a strong foothold in the electronics manufacturing space, producing computers for brands like Acer at its Noida facility. This new partnership with HP marks an important step forward for both companies, as HP deepens its commitment to local sourcing and manufacturing in India. Ipsita Dasgupta, Managing Director of HP India, had previously expressed the company’s intent to increase manufacturing and sourcing within the country, especially as the computer market is expected to double over the next five years.
Dasgupta highlighted the impact of the PLI scheme on India’s growing IT hardware sector. “The PLI scheme has been a great enabler. We are participating in it because it creates a pathway for the sector’s development from a manufacturing perspective. We are confident that the ecosystem will grow quickly over the next few years,” she stated.
HP had already been manufacturing a portion of its laptops in India through American contract manufacturer Flex. However, this new collaboration with Dixon further underscores HP’s commitment to expanding its local manufacturing footprint.
The deal with Dixon aligns with the Indian government’s broader push for domestic manufacturing, as the country seeks to reduce its reliance on imports and build a robust electronics manufacturing ecosystem. The project is expected to drive significant investments and job creation in India’s growing IT hardware sector.
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