Xiaomi's Indian supplier Dixon to open smartphone plant in Delhi as govt pushes Chinese firms to use local partners
Chinese smartphone manufacturer Xiaomi Inc's supplier Dixon Technologies India Ltd will reportedly open a massive new factory on the outskirts of New Delhi, Bloomberg News reported. Chinese-based company Xiaomi has been compelled to partner with Dixon for smartphone assembly because India is pressing Chinese companies to localize everything from manufacturing to distribution of devices. As per the Bloomberg report, Dixon will invest more than ₹4 billion ($48.2 million) over three years in the factory, which is spread over more than 300,000 square feet or the size of six football fields, and will largely produce Xiaomi smartphones.
The plant is set to be inaugurated by a government official toward the end of this month. The plant is set to be inaugurated by a government official toward the end of this month. In a similar move, Xiaomi handed a contract to India’s Optiemus Electronics Ltd.
to make its Bluetooth neckband earphones, a product it previously imported from China. Xiaomi partnership is another boost for the homegrown Dixon, which is among the companies vying to become India’s response to Foxconn — Apple’s Taiwanese supplier most famous as the key maker of iPhones. Sunil Vachani started Dixon with borrowed money in a rented shed outside of New Delhi three decades ago.
Dixon is a rapidly expanding electronics company that makes products including smartphones, washing machines, and television sets for brands such as Motorola and Samsung. Xiaomi, once the leader in India’s smartphone market, lost steam after facing heightened regulatory scrutiny and overexpanding its product portfolio. The Chinese company is betting on a gradual recovery, as it looks to offer affordable locally made 5G smartphones.
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