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Dixon Technologies, India’s second-largest contract manufacturer for consumer electronics, is foraying into information &communications technology (ICT) hardware, including laptops, desktops, tablets and servers, and is set to open a factory in south India for it, a top executive said.

The home-grown electronics manufacturing services (EMS) player, which already produces smart TVs, LED lighting, washing machines and mobile phones, has zeroed in on a factory down south as part of the expansion plan.

We are keenly awaiting the guidelines of the recently announced PLI(production-linked incentive) scheme for ICT hardware, which will decide our investment and output plans,” Sunil Vachani, chairman of Dixon, told ET. He said Dixon is in talks with leading global and domestic laptop, desktop and tablet brands to shift their production to India once the PLI scheme kicks off. “Now that India has achieved scale and self-dependence for assembly of mobile phone handsets, the next target is ICT hardware

Dixon has 11 manufacturing units —five in Noida (Uttar Pradesh), four in Dehradun (Uttarakhand) and two in Tirupati (Andhra Pradesh). Its wholly-owned subsidiary Padget Electronics has been cleared to receive rewards under handset PLI scheme and is investing 75 crore in its latest Noida plant for phones.

Local manufacturing of ICT products is scarce, as 87% of laptops and 63% of tablets are imported — mostly from China – to meet domestic demand.

India’s 2nd-largest contract manufacturer for consumer electronics is awaiting PLI norms for ICT hardware.