PG Electroplast Limited (PGEL), one of India’s leading Electronic Manufacturing Services (EMS) providers, has taken a decisive step in expanding its portfolio by announcing a strategic manufacturing partnership with PAX India, a subsidiary of PAX Global Technology Limited—a globally renowned player in the electronic payment terminal and POS solutions industry. The agreement, formally announced on August 20, 2025, will see PG Electroplast manufacture PAX-branded Point-of-Sale (POS) devices at its existing facilities in India, with commercial production targeted to commence before the end of the year. This collaboration is a significant milestone for both organisations, underscoring their shared vision of delivering world-class digital payment infrastructure in line with the Government of India’s “Make in India” and “Digital India” missions.

This landmark partnership represents much more than a manufacturing arrangement. It marks PG Electroplast Limited’s entry into the rapidly growing payments and financial technology hardware sector, expanding its established footprint from consumer electronics to include high-value, high-growth digital infrastructure solutions. Historically, PGEL has built strong capabilities in Original Equipment Manufacturing (OEM) and Original Design Manufacturing (ODM) for consumer appliances such as Washing Machines, LED Televisions, Room Air Conditioners and Air Coolers. By collaborating with PAX India, it is now leveraging its rich manufacturing expertise to support India’s booming fintech ecosystem.

The decision to partner with PAX India is both timely and strategic. Over the past several years, India has emerged as one of the largest and fastest-growing digital payments markets in the world, propelled by rapid adoption of UPI (Unified Payments Interface), increased smartphone penetration, stronger network connectivity and robust policy support. According to recent industry reports, the Indian digital payments ecosystem is expected to exceed USD 1 trillion in transaction value by the end of the decade, driven by increased retail usage and the government’s aggressive push towards a cashless economy. In this environment, the demand for secure, reliable, and scalable POS devices is rising steadily, particularly across tier-II and tier-III towns where digital adoption is accelerating.

Recognising this large and expanding opportunity, PAX India—which has quickly established itself as the undisputed leader in the Indian POS industry—decided to deepen its localisation efforts in order to ensure greater reliability, efficiency and cost-effectiveness for its customers. The partnership with PG Electroplast enables PAX India to manufacture its advanced POS terminals locally, benefitting from PGEL’s robust manufacturing infrastructure, supply-chain resilience, and impressive history of product quality. This approach ensures that customers in India are provided with globally competitive solutions that are manufactured within the country, resulting in faster deployment, enhanced serviceability and reduced costs.

Mr. Vikas Gupta, Managing Director – Operations of PG Electroplast Limited, expressed pride and confidence in the agreement, emphasising that the partnership with PAX is a pivotal step for PGEL. He highlighted that the collaboration will enable the company to broaden its portfolio while supporting the nation’s objective of promoting “self-reliance in manufacturing”. He also pointed out that PGEL now becomes one of the very few companies in India capable of manufacturing POS hardware, thereby strengthening its position in the electronics and technology manufacturing ecosystem and creating long-term value for its stakeholders.

On the other hand, Mr. Sanjeev Sandhu, CEO of PAX India, echoed similar sentiments, noting that India’s extraordinary growth in digital payments necessitates the availability of reliable and scalable POS solutions produced locally. He reaffirmed that the partnership with PG Electroplast represents a synergistic collaboration, combining PAX’s global technology leadership with PGEL’s proven operational and manufacturing expertise. According to Mr. Sandhu, the collaboration will significantly enhance PAX’s localisation strategy, enabling the company to deliver even more relevant and tailor-made solutions to the Indian market.

From a broader industry perspective, the partnership reinforces the importance of public-private cooperation in driving large-scale digital transformation. It directly contributes to key national initiatives such as “Make in India”, which encourages companies to manufacture in India and reduce reliance on imported products, as well as “Digital India”, which aims to make digital services accessible to every citizen. The localisation of POS manufacturing also enhances the strategic autonomy of India’s digital payment infrastructure, making it more resilient and better aligned with domestic requirements.

The collaboration is expected to trigger a range of economic and operational benefits. Firstly, by manufacturing POS devices locally, PAX and PGEL will be able to significantly shorten lead times and reduce logistical complexities, ensuring rapid fulfilment of customer orders. Secondly, it will result in better after-sales support and faster maintenance cycles, which are essential in technology-intensive sectors such as digital payments. Thirdly, the collaboration is projected to create new employment opportunities and contribute to the growth of ancillary industries involved in the electronics manufacturing supply chain.

PAX Global Technology Limited, the parent company of PAX India, is a Hong Kong-listed entity with global operations spanning more than 100 countries. It offers a wide range of smart Android POS terminals, unattended payment devices, classic POS terminals, and cloud-based SaaS platforms. The company’s reputation for technological excellence and innovation makes it a formidable player in the sector. Since its establishment in 2018, PAX India has rapidly grown to become a trusted partner for India’s largest banks, payment service providers and technology platforms. The partnership with PG Electroplast will allow PAX India to consolidate its leadership position even further and respond to evolving customer needs with locally manufactured, future-ready POS devices.

PG Electroplast Limited has a proven record of delivering high-quality EMS and contract manufacturing solutions for a broad range of consumer electronics and durable goods. The company operates multiple state-of-the-art manufacturing facilities, strategically located to cater to domestic and export markets. Its end-to-end capabilities, including plastic injection moulding, tooling, box-build assembly, and design support, provide a solid foundation for the manufacture of complex and high-precision products such as POS terminals.

It is also important to note that the financial technology hardware segment is increasingly becoming a strategic opportunity area for electronics manufacturers globally. As rising internet penetration fuels demand for digital commerce and fintech services, hardware manufacturers with capabilities in embedded systems, precision assembly and quality testing are in a position to benefit greatly from this trend. For PG Electroplast, this collaboration with PAX India represents a long-term growth platform that aligns with evolving global trends and allows the company to diversify beyond traditional consumer appliances.

The detailed definitive agreement between the two parties outlines the responsibilities and expectations of each entity and is built on a foundation of mutual trust, knowledge sharing and technological exchange. PGEL will be responsible for manufacturing, assembling, and testing the PAX-branded POS devices, ensuring they meet global quality standards. PAX India will continue to provide technology, designs, and product support, ensuring that the devices manufactured in India remain aligned with global best practices and are built to seamlessly integrate with existing digital payment ecosystems.

The announcement of this partnership has been viewed favourably by analysts tracking the Indian electronic manufacturing and fintech sectors. Many believe that by localising POS manufacturing, the collaboration could help reduce import dependency and strengthen the domestic hardware ecosystem, which is critical for the sustainability and competitiveness of India’s digital economy.

In terms of market impact, the locally manufactured POS devices are expected to gain acceptance across banking institutions, merchant aggregators and fintech service providers who are increasingly looking for locally sourced, high-quality products that offer quick serviceability and strong regulatory compliance. The presence of a domestic manufacturing partner like PGEL also aligns with the preferences of many public sector institutions, which often favour locally produced solutions.

Furthermore, the agreement will likely open up new possibilities for future collaborations between the two organisations, including joint development of next-generation payment terminals, customised hardware for specific verticals, and export opportunities. With the global market for POS devices projected to grow as digital commerce scales in multiple regions, India could emerge as an important manufacturing and export hub for PAX Global in the coming years.

In conclusion, the strategic manufacturing partnership between PG Electroplast Limited and PAX India is a major step forward for both companies and a significant development in the broader context of India’s fast-growing digital payments landscape. It combines best-in-class technology with high-quality local production capability, bringing advanced POS devices closer to Indian businesses and consumers. By reinforcing the pillars of Make in India, Digital India, and self-reliant manufacturing, this collaboration not only delivers tangible business benefits but also contributes to the nation’s long-term vision of technological empowerment and sustainable growth.

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