You are here: Home » News-CM » Equities » Hot Pursuit
Business Standard

Dixon Tech gets Govt approval under PLI scheme for hardware manufacturing

Capital Market 

India's Ministry of Electronics and Information and Technology (MeitY) approved 14 eligible applicants under the Production Linked Incentive Scheme (PLI) for IT hardware manufacturing.

Dixon Technologies (India) is one of the 14 companies (domestic & international) which has been granted approval under the PLI scheme of Government of India for IT hardware manufacturing.

Commenting on the occasion, Atul B. Lall, vice chairman & MD of Dixon Technologies said, "Dixon has established itself as one of the leading and trustworthy electronic manufacturing service provider in India. Due to pandemic situation, last few months had been extremely challenging for everyone. However, we sustained during these challenging times due to our commitment towards quality products, strong associations with leading brands and continuous efforts towards foraying into new and emerging segments with the likes of IT hardware manufacturing. We are extremely thrilled that after PU approval for Mobile Phones, we have received PU approval to manufacture IT hardware products as well. We are thankful to Government of India for providing such encouraging platforms to Domestic manufacturing sector. We are positive that we will immensely contribute towards building strong ecosystem for strengthening manufacturing space in India. Also, I would like to take this opportunity to congratulate all the Companies who have achieved this breakthrough along with us."

PLI scheme for IT hardware notified on 3rd March 2021, extends an incentive of 4% to 2%/1% on net incremental sales (over base year of FY 2019-20) of goods under target segments that are manufactured in India to eligible companies, for a period of four years (FY2021-22 to FY 2024-25). The target segments under the PLI scheme for IT hardware include laptops, tablets, all-in-one personal computers (PCs) and servers. The scheme proposes production linked incentives to boost domestic manufacturing and attract large investments in the value chain of these IT hardware products.

Four companies have been selected under the category IT hardware companies include Dell, ICT (Wistron), Flextronics and Rising Stars Hi-Tech (Foxconn).

Under the category of domestic companies, 10 companies namely Dixon Technologies (India), Lava International, Infopower Technologies (JV of Sahasra and MiTAC), Bhagwati (Micromax) Neolync, Optiemus, Netweb, Smile Electronics, VVDN and Panache Digilife have been approved.

Over the next 4 years, the approved companies under the PLI scheme for IT hardware are expected to lead to a total production of more than Rs 1.61 lakh crore. Out of the total production, the approved companies under IT hardware companies category have proposed a production of Rs 84,746 crore. The approved companies under domestic companies category have proposed a production of Rs 76,007 crore. The scheme will bring additional investment in IT hardware manufacturing to the tune of Rs 2,517 crore.

Dixon Technologies (India) is the largest home grown design-focused and solutions company engaged in manufacturing products in the consumer durables, lighting and mobile phones markets in India. It also provides solutions in reverse logistics i.e. repair and refurbishment services of LED TV panels.

The company reported 60% jump in consolidated net profit to Rs 44.26 crore in Q4 FY21 compared with Rs 27.58 crore in Q4 FY20.

Shares of Dixon Tech rose 2.57% to Rs 4,524.40 on Friday.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, July 03 2021. 15:28 IST