In December 2023, Padget Electronics was awarded a manufacturing contract by Lenovo to produce IT hardware products
Electronic manufacturing services major Dixon Technologies (India) Ltd has issued a continuing and irrevocable corporate guarantee of $220 million (around ₹2,101 crore) on behalf of its wholly owned subsidiary Padget Electronics in favour of Lenovo Ireland International Ltd.
According to a regulatory filing, the guarantee has been provided to ensure that Padget Electronics meets its payment obligations to Lenovo Ireland for the purchase of raw materials, parts, and components required for manufacturing Lenovo products.
Dixon said the corporate guarantee has been issued for and on behalf of Padget Electronics, with an aggregate limit of $220 million. Padget Electronics is an unlisted material wholly owned subsidiary of Dixon Technologies.
The company clarified that there is no immediate financial impact on Dixon from the guarantee. However, the amount will be reflected as a contingent liability in the company’s books.
The development comes as Padget continues its manufacturing partnership with Lenovo. In December 2023, Padget Electronics was awarded a manufacturing contract by Lenovo to produce IT hardware products, including laptops and notebooks, under the production linked incentive (PLI) 2.0 Scheme.
The guarantee is expected to support Padget’s procurement requirements as it undertakes manufacturing activities for Lenovo, while reinforcing the relationship between Dixon and the global technology company.
