India approves Dixon-Vivo joint venture for smartphone manufacturing: Here's what it means

The Indian government has approved Dixon Technologies' joint venture with Chinese smartphone maker Vivo Mobile, clearing the way for the two companies to establish a smartphone manufacturing venture in India. Under the approved arrangement, Dixon will hold a 51% stake in the joint venture, while Vivo Mobile India will own the remaining 49%.

Large investments involving Chinese companies typically face heightened scrutiny under Indian regulations. Such investments require senior-level government approval under rules governing investments from countries that share a land border with India.

The new venture will manufacture smartphones and other electronic devices as an original equipment manufacturer (OEM) in India and will primarily undertake Vivo's smartphone production orders. It will also be able to manufacture electronic products for other brands, expanding Dixon's contract manufacturing business.

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The Dixon-Vivo partnership was first announced in December 2024 through a non-binding term sheet. With definitive agreements now signed and government approval in place, the companies can move forward with setting up the joint venture after completing the remaining regulatory and operational formalities.

Dixon said the partnership is part of its strategy to expand its presence in India's Android smartphone manufacturing ecosystem and strengthen its contract manufacturing business. Under the agreement, both companies will have equal representation on the board, with two directors each, despite Dixon holding a 51% stake. The transaction is expected to be completed within a year, after which the joint venture will operate as a subsidiary of Dixon Technologies.