Dixon Technologies (India) Ltd. and Vivo Mobile India Pvt. Ltd. (VMI) have officially entered into definitive agreements to establish a joint venture (JV) company. This strategic partnership aims to undertake original equipment manufacturer (OEM) business for various electronic devices, prominently including smartphones, within India.
Government Approval Paves Way for Collaboration
The formation of this new entity follows crucial approval from the Government of India, granted under Press Note 3 of 2020 by the Department for Promotion of Industry and Internal Trade (DPIIT). This approval, received on July 8, 2026, was a prerequisite for the incorporation of the joint venture company and allows Vivo India to subscribe to equity shares in the new entity.
Ownership Structure and Strategic Goals
Under the agreed ownership structure, Dixon Technologies will hold a majority stake of 51% in the joint venture, while Vivo Mobile India will own the remaining 49%. The companies have also executed a Shareholders' Agreement (SHA), detailing the rights and responsibilities of both partners, as well as the governance and operational framework for the proposed venture.
This development builds upon an earlier non-binding term sheet signed in December 2024. Dixon Technologies has stated that this collaboration is expected to significantly enhance its manufacturing capabilities and execution strengths. It also deepens the company's presence within India's rapidly expanding Android smartphone ecosystem. The venture aligns with Dixon's long-term strategy of expanding its electronics manufacturing footprint and strengthening its position in the fast-growing smartphone segment.
The new joint venture will focus on manufacturing electronic devices, including smartphones, leveraging the strengths of both Dixon Technologies and Vivo Mobile India.
The agreement underscores a commitment to boosting domestic electronics production and capitalizes on India's 'Make in India' initiative, positioning both companies to play a larger role in the country's vibrant electronics manufacturing landscape.