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Xiaomi Partners with Indian Manufacturer Padget Electronics

Updated: Jan 9

[Edited] Chinese smartphone giant Xiaomi has entered into a partnership with Indian consumer electronics company Dixon Technologies, specifically through its subsidiary Padget Electronics.

Credits: Shutterstock

This collaboration aims to increase the production of Xiaomi handsets and other devices in India.

The assembly of smartphones and electronics products will take place at Padget Electronics' facility in Noida, Uttar Pradesh. The deal is seen as a significant milestone in the Indian government's "Make in India’ initiative”, which promotes domestic manufacturing.

Xiaomi's decision to expand its production footprint in India reflects the growing demand in the country, which is the world's second-largest smartphone market after China.

The company initially established local production in India in 2015 through a partnership with electronics contract manufacturer Foxconn Technology Group. However, Xiaomi downplayed the significance of this new contract manufacturing deal, stating that it is a continuation of their existing partnership with Padget Electronics, one of their five electronics contract manufacturing service providers in India.

The Indian government's financial incentives to boost local manufacturing have attracted investments from major electronics brands looking to diversify their production outside of mainland China. Padget Electronics is among the companies that have received grants from a government-backed program promoting the manufacturing of telecommunications and networking products in India.

This partnership with Padget Electronics comes as Xiaomi plans to expand its network of bricks-and-mortar stores across India. Currently, the company has 18,000 stores in the country. This store expansion strategy aims to address Xiaomi's shrinking market share in India, as it continues to face a legal battle with the Indian government over the return of frozen funds amounting to US$676 million. The authorities have accused Xiaomi of making remittances to foreign entities under the guise of royalty payments, a claim that Xiaomi denies.

In the second quarter, Xiaomi held a 15% share of India's smartphone market, ranking third behind Samsung Electronics and Vivo, according to Counterpoint Research data.

  • Xiaomi partners with Indian manufacturer Padget Electronics to increase production in India.

  • The collaboration involves the assembly of smartphones and electronics products.

  • The deal is seen as a significant milestone in India's "Make in India" initiative.

  • Xiaomi downplays the significance of the partnership, stating it is a continuation of their existing relationship with Padget Electronics.

Source: SCMP

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