India's largest EMS provider Dixon Technologies and its Japan-based longtime partner Rexxam are going to manufacture air-con PCB together in India, seeking the Indian government's subsidies for manufacturing white goods, according to Economic Times and ElectronicsB2B.
Dixon's vice president Atul Lall said they are expecting to go beyond the India market with Rexxam in the future.
For the new subsidiary, Rexxam will hold 60% of its shares while Dixon owns 40%.
Dixon Technologies has applied for almost all of India's PLI subsidy schemes for electronics manufacturing. In order to meet the requirements for government subsidies, Dixon has been investing heavily in the sector.
One of Dixon's subsidiaries Padget Electronics has received PLI for mobile phones. Dixon is qualified for PLI for IT hardware including notebook, tablet, server, and AIO PC. It's now building a PCB manufacturing facility to supply for its own IT production.
Dixon has also partnered with local telecom operator Bharti Enterprises to win PLI for telecom devices.
Dixon previously worked with Samsung to supply low-end handsets in India and with Xiaomi for smart TV.
According to Business Standard, Dixon is expected to invest about INR$6 billion (US$81 million) within the next year to produce mobile devices, tablets, notebooks, LEDs in India.
