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HP India In Talks With VVDN & Dixon To Strengthen Domestic Laptop Assembly

Updated: May 10, 2024 02:50:37pm

HP India In Talks With VVDN & Dixon To Strengthen Domestic Laptop Assembly

New Delhi, May 10 (KNN) In a significant move to strengthen domestic laptop assembly operations, HP India, the Indian subsidiary of the renowned American computer manufacturer, is engaged in discussions with local firms VVDN Technologies and Dixon Technologies. 

This development comes as HP India stands among the 27 eligible companies for the Indian government's Production Linked Incentive (PLI) scheme 2.0 for IT hardware, which has allocated a substantial Rs. 17,000 crore for incentives.

While HP India already operates its own assembly plant and has an existing partnership with the US-based Flex for laptop assembly, the company is exploring assembly-only agreements with Dixon and VVDN. Both domestic firms are eligible for the production-linked incentives under the PLI scheme.

The proposed arrangement would entail HP India supplying all necessary components for manufacturing, known as job work, while Dixon and VVDN would handle the assembly process. 

VVDN Technologies has prior experience collaborating with Hewlett Packard Enterprise (HPE) to assemble servers at its Manesar plant in Haryana, with plans to produce high-end servers valued at USD 1 billion over the next five years.

Notably, both VVDN Technologies and Dixon Technologies have established partnerships with chipmaker Intel, receiving crucial technological insights to bolster the laptop manufacturing industry in India. Dixon Technologies, an electronics manufacturing services (EMS) player, secured a contract in December 2023 to assemble laptops and notebooks for Lenovo in India. Additionally, the company assembles Motorola feature phones for HMD India and Acer laptops, dating back to 2021.

To meet the growing demands, Dixon is investing Rs. 250 crore to establish a plant in Noida, with a capacity to produce one million laptops annually, set to commence operations soon.

According to IDC Research, HP India commanded a dominant 31.5 per cent share of the Indian PC market in 2023, followed by Lenovo at 16.7 percent, Dell at 15.5 per cent, and Acer at 12.3 per cent. In the laptop segment specifically, HP leads with a 33.2 percent share, trailed by Dell at 23.1 per cent and Lenovo at 14.7 percent.

The Indian laptop market was valued at nearly USD 8 billion in 2023, with a significant 65 per cent of units being imported. The revised PLI scheme aims to curtail imports and bolster domestic manufacturing capabilities in this sector, aligning with the government's broader push for self-reliance in electronics manufacturing.

(KNN Bureau)


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