Indian govt approves Dixon-Vivo partnership for local smartphone manufacturing
The Indian government has approved Dixon Technologies' joint venture with Vivo Mobile to set up a smartphone manufacturing company in India. The clearance allows the venture to take up Vivo's production orders and make electronic products for other brands.
The Indian government has approved a joint venture between Dixon Technologies and Vivo Mobile India to manufacture smartphones and other electronic devices in the country. The approval clears a proposal that had been pending under Press Note 3 of 2020 and allows Vivo to expand its manufacturing operations in India through a majority Indian-owned company.
According to Dixon's stock exchange filing, the Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, approved the proposal on July 8. The approval allows Vivo Mobile India to invest in the joint venture with Dixon to set up a new smartphone manufacturing company in India. Dixon will own a 51 per cent stake in the venture, while Vivo Mobile India will hold the remaining 49 per cent.
Dixon and Vivo first signed a binding term sheet for the partnership in December 2024. Following the government's approval, the two companies have now signed the final joint venture and shareholders' agreements, which set out how the new company will be managed and operated.
How the partnership will work
Under the partnership, Dixon and Vivo will set up a new company that will manufacture smartphones and other electronic devices in India. The company will primarily produce Vivo smartphones, but it will also be allowed to manufacture devices for other brands. This means Dixon will not only increase its production capacity but also expand its contract manufacturing business.
The two companies will initially invest Rs 5 crore in the new venture, in line with their shareholding. Once incorporated under the Companies Act, 2013, the joint venture will become a subsidiary of Dixon. The process is expected to be completed within a year, after which the new company will acquire certain manufacturing assets and take over part of Vivo's smartphone production in India.
The approval by the government is also significant as it was granted under Press Note 3, a rule introduced in 2020 that requires prior government approval for investments from countries that share a land border with India, including China. The policy was brought in during the Covid-19 pandemic and has remained in place amid broader security concerns.
For Dixon, the partnership is expected to significantly boost its smartphone manufacturing business. The company has previously said the venture could add 20–22 million smartphone units to its annual production over time and generate around Rs 30,000 crore in additional annual revenue once it is fully operational.
Dixon expects production under the joint venture to begin during the December quarter of the current financial year, with around 11 million smartphones likely to be manufactured in FY27 before operations scale up further in FY28.
The Indian government has approved a joint venture between Dixon Technologies and Vivo Mobile India to manufacture smartphones and other electronic devices in the country. The approval clears a proposal that had been pending under Press Note 3 of 2020 and allows Vivo to expand its manufacturing operations in India through a majority Indian-owned company.
According to Dixon's stock exchange filing, the Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, approved the proposal on July 8. The approval allows Vivo Mobile India to invest in the joint venture with Dixon to set up a new smartphone manufacturing company in India. Dixon will own a 51 per cent stake in the venture, while Vivo Mobile India will hold the remaining 49 per cent.
Dixon and Vivo first signed a binding term sheet for the partnership in December 2024. Following the government's approval, the two companies have now signed the final joint venture and shareholders' agreements, which set out how the new company will be managed and operated.
How the partnership will work
Under the partnership, Dixon and Vivo will set up a new company that will manufacture smartphones and other electronic devices in India. The company will primarily produce Vivo smartphones, but it will also be allowed to manufacture devices for other brands. This means Dixon will not only increase its production capacity but also expand its contract manufacturing business.
The two companies will initially invest Rs 5 crore in the new venture, in line with their shareholding. Once incorporated under the Companies Act, 2013, the joint venture will become a subsidiary of Dixon. The process is expected to be completed within a year, after which the new company will acquire certain manufacturing assets and take over part of Vivo's smartphone production in India.
The approval by the government is also significant as it was granted under Press Note 3, a rule introduced in 2020 that requires prior government approval for investments from countries that share a land border with India, including China. The policy was brought in during the Covid-19 pandemic and has remained in place amid broader security concerns.
For Dixon, the partnership is expected to significantly boost its smartphone manufacturing business. The company has previously said the venture could add 20–22 million smartphone units to its annual production over time and generate around Rs 30,000 crore in additional annual revenue once it is fully operational.
Dixon expects production under the joint venture to begin during the December quarter of the current financial year, with around 11 million smartphones likely to be manufactured in FY27 before operations scale up further in FY28.
