Dixon Technologies announced Thursday that the Indian government has approved its joint venture with Chinese smartphone manufacturer Vivo Mobile, opening the door for the two companies to establish a smartphone production operation within India.
Under the terms of the agreement, Dixon will hold a 51% majority stake in the venture, while Vivo Mobile India will own the remaining 49%.
The approval process was not routine. Indian regulations require senior government-level clearance for large investments made by companies from countries that share a land border with India — a rule that applies to Chinese firms — meaning the deal faced heightened scrutiny before receiving the go-ahead.
Once operational, the joint venture will function as an original equipment manufacturer, producing smartphones and other electronic devices. It will take on Vivo’s smartphone production orders as a primary focus.
Dixon also noted that the new venture will have the flexibility to manufacture electronic products for other brands beyond Vivo, potentially broadening its customer base within India’s growing electronics sector.
