Dixon’s subsidiary Padget Electronics has inked a memorandum of understanding (MoU) with HP India to manufacture personal computers (PCs) and laptops.

In a filing with the BSE, Dixon said that the deal will be subject to signing of definitive agreements in due course. The partnership will enable HP India to leverage the Centre’s production linked incentive scheme (PLI 2.0) and shore up the domestic production of its products.

Speaking with ANI, information technology minister Ashwini Vaishnaw said that the manufacturing unit, located in Tamil Nadu, will initially employ about 1,500 persons. He added that as production increases, the employment will also increase at the unit.

The IT minister also said that the first laptop will be shipped out of the factory by February 2025.

It is pertinent to note that Padget is setting up a new facility in Tamil Nadu’s Oragadam under the PLI scheme for manufacturing laptops and other IT hardware products. As per reports, the new facility, spanning 3 Lakh sq. ft., will be capable of producing 2 Mn units annually.

“It gives us immense pleasure to partner with the iconic brand HP to manufacture PCs under PLI 2.0… We are sure that with HP’s vision and rigorous industry-leading processes, combined with our expertise in manufacturing, we will be able to bring a range of HP personal systems to Indian customers,” said Dixon chairman and managing director (MD) Atul Lall.