Dixon Technologies To Lead 51% Smartphone Manufacturing JV With Vivo Mobile India

Dixon Technologies (India) Ltd has signed a joint venture agreement and shareholders' agreement with Vivo Mobile India Private Ltd (VMI) to set up a new company in India that will undertake the original equipment manufacturer (OEM) business for electronic devices, including smartphones.

The announcement follows a term sheet signed by the two companies in December 2024. Dixon said Vivo Mobile India received approval from the Government of India on 8 July 2026, under Press Note 3 of 2020 issued by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry. The approval allows the incorporation of the joint venture company and the subscription to its shares.

The proposed joint venture will be owned 51% by Dixon Technologies and 49% by Vivo Mobile India. Neither company will hold any direct stake in the other. At 12:10 PM, Dixon Technologies shares were up 0.58% on the Bombay Stock Exchange (BSE).

Joint Venture To Manufacture Smartphones And Other Devices

The new company will manufacture electronic devices, including smartphones. It will execute a part of Vivo Mobile India's smartphone OEM orders in India and will also have the ability to manufacture products for other brands.

The joint venture will start with an initial paid-up share capital of ₹5 crore. Dixon Technologies and Vivo Mobile India will contribute the capital in the agreed 51:49 shareholding ratio. The company said no consideration has been exchanged between the parties because the joint venture is yet to be incorporated.

Once the transaction closes, the new entity will acquire certain manufacturing assets and enter into a manufacturing and packaging agreement with Vivo Mobile India to execute part of its OEM orders.

Shareholders' Agreement Defines Governance Structure

According to Dixon Technologies, the shareholders' agreement sets out the rights and responsibilities of both partners in managing the business. Key provisions include:

• Two nominee directors, each from Dixon Technologies and Vivo Mobile India, on the board.

• Information and inspection rights for both shareholders.

• Reserved matters requiring shareholder approval.

• Pre-emptive rights and transfer restrictions.

• Representations, warranties and dispute resolution provisions.

The company said the transaction remains subject to customary conditions precedent and statutory as well as regulatory approvals. The parties have agreed on an outer timeline of one year from the execution of the joint venture agreement to complete these conditions, unless both sides decide otherwise.

Dixon Says JV Will Strengthen Smartphone Manufacturing

After incorporation, the joint venture will become a subsidiary of Dixon Technologies. The investment will be made in cash, while the subscription price will be determined based on valuation reports obtained by the joint venture in line with applicable law.

Dixon Technologies said the arrangement will become a related-party transaction only after the joint venture is incorporated because it will then qualify as its subsidiary. The company added that the transaction will be conducted on an arm's-length basis and clarified that Vivo Mobile India is not related to Dixon's promoter or promoter group.

The company said the partnership is expected to strengthen its manufacturing capabilities, improve execution and reinforce its position in India's Android smartphone ecosystem.

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