Dixon Technologies in focus after IT Minister appreciates strong response to PLI scheme

Dixon Technologies, one of the leading domestic IT companies, was in focus on Thursday after Union IT Minister Ashwini Vaishnaw on Wednesday highlighted the resounding success of the central government’s Production Linked Incentive (PLI) scheme.

Home grown electronics manufacturer Dixon Technologies is one of the companies registered to receive the incentives under the PLI 2.0 scheme for the IT hardware segment.

Minister Vaishnaw said during a press conference that the PLI Scheme 2.0 for IT Hardware garnered an impressive response, with nearly 32 companies vying for a share of the scheme's incentives.

The Minister expressed satisfaction with the scheme's reception, revealing that 32 applications have already been submitted. He stated, "Overwhelming response received for the production of laptops and PCs under the hardware Production Linked Incentive Scheme (PLI) scheme."

He also highlighted that established names like HP India, Dell, Acer, Lenovo, and Thomson are among the firms keen to leverage the scheme to manufacture laptops. Companies like Dixon Technologies (India) and Foxxcon also applied under the PLI Scheme.

More than 25 domestic companies have been included in the PLI scheme.

Vaishnaw emphasised the anticipated benefits, noting that the scheme could contribute to an incremental production value of Rs 3.35 lakh crore, potentially generating around 75,000 direct job opportunities.

What is PLI scheme?

The PLI scheme was floated with the aim of bolstering the domestic manufacturing ecosystem and elevating India's position as a global supply chain partner. The scheme got a good response from both domestic and multinational players. The scheme, first notified on May 29 this year, came with a budgetary allocation of Rs 17,000 crore. The scheme offers incentives of up to 5 per cent on incremental sales, which is a significant increase from the first phase's 2 per cent.

Shares of Dixon Technologies were trading  0.74  per cent higher at Rs 4,991.60 apiece on BSE at 2:57 PM.