Dixon Technologies (India) Ltd. issued a $220 million (approx. Rs 2,101 crore) corporate guarantee for its wholly-owned subsidiary, Padget Electronics.
The irrevocable guarantee secures payment obligations to Lenovo Ireland International Limited for the purchase of raw materials and components.
This agreement supports Padget’s contract to manufacture laptops and notebooks under the Production Linked Incentive (PLI) 2.0 scheme.
Dixon will record the guarantee as a contingent liability on its financial statements.
Management expects no immediate adverse financial impact from this move to stabilize the subsidiary's manufacturing supply chain.