Dixon and vivo India Approved to Form Joint Venture for Local Manufacturing
Indian EMS company Dixon announced that the relevant Indian government department has approved the establishment of a joint venture with vivo India. The venture will manufacture mobile phones and other electronic products locally.
Indian electronics contract manufacturer Dixon has received approval from India's Department for Promotion of Industry and Internal Trade to form a joint venture with vivo India. The new entity will focus on the Original Equipment Manufacturer (OEM) production of mobile phones and other electronic devices within the country.
The approval allows Dixon and vivo India to establish a joint venture with a 51:49 ownership stake. The venture is expected to commence the manufacturing of smartphones and other electronic equipment in India. This move is set to expand vivo India's local manufacturing capabilities and could potentially handle orders from other electronics firms.
Dixon and vivo India had signed a letter of intent for the joint venture back in 2024, but the administrative approval process proved to be lengthier and more complex than anticipated. The establishment of the company faced administrative delays after initial plans were made.
Dixon's founder and chairman Sunil Vachani had previously indicated that the joint venture is projected to cater to approximately two-thirds of vivo India's smartphone sales in the country, which translates to an annual production capacity of over 20 million units.