India Clears Dixon-Vivo Smartphone Manufacturing JV

21 July 2026: India has cleared the proposed smartphone manufacturing joint venture between Dixon Technologies and Vivo Mobile India. The approval was issued in a government letter dated July 8, 2026, and disclosed by Dixon in a stock exchange filing on July 9. The venture will be owned 51% by Dixon and 49% by Vivo. It will operate as an original equipment manufacturer of electronic devices, including smartphones, in India.

JV Structure and Scope

Dixon and Vivo signed a joint venture agreement and a shareholders’ agreement after first announcing the proposed partnership in December 2024. The new company, which is yet to be incorporated, will begin with paid-up share capital of INR 5 crore, contributed by the partners in proportion to their holdings. The official filing says the venture will handle part of Vivo’s smartphone manufacturing orders in India. It will also be permitted to manufacture electronic products for other brands. At closing, the company will purchase certain manufacturing assets and enter into a manufacturing and packaging agreement with Vivo. Both partners will have the right to nominate two directors to its board.

Production Outlook

Dixon managing director Atul Lall has estimated that the partnership could add 20 million to 22 million smartphones to Dixon’s annual production over time. This would represent about two-thirds of Vivo’s Indian production footprint of roughly 35 million handsets. Dixon expects operations to begin in the December quarter of FY27. Management has projected about 11 million units from the partnership in FY27, followed by a full ramp-up in FY28. The agreement gives Dixon access to a large smartphone order base while retaining Indian majority ownership. However, the official filing does not promise 100% of Vivo’s production or quantify local component sourcing.