Dixon & Vivo Partner to Manufacture Smartphones in India
Dixon Technologies and Vivo India have announced a joint venture to manufacture smartphones, a move aimed at strengthening local production capabilities. Under the agreement, Dixon will hold a majority 51% stake, while Vivo India will own 49%, as revealed in a regulatory filing on Sunday. Both companies clarified that neither would hold stakes in the other’s operations, maintaining independence outside the partnership. Financial terms of the agreement were not disclosed.
The joint venture agreement, described as a binding term sheet, is subject to regulatory approvals and the establishment of definitive terms. This development aligns with the Indian government’s efforts to encourage collaborations between Indian and Chinese firms to bolster local manufacturing. The government has been advocating for Chinese smartphone brands to partner with Indian entities, induct Indian equity stakeholders, and appoint Indian executives in key roles to address regulatory concerns and strengthen compliance with Indian laws.
“We believe that this association will bolster our manufacturing excellence and superior execution abilities, along with Vivo’s leadership in the Indian business ecosystem. Together, we aim to create a stronger, more diversified, and future-proof organization”, said Atul B. Lall, Vice Chairman and Managing Director of Dixon.
Dixon, a leading electronics manufacturer in India, already produces smartphones for major global brands, including Samsung, Xiaomi, Oppo, Motorola, and Google. With this new partnership, Dixon will also take on the production of Vivo smartphones, alongside its existing portfolio. Additionally, the joint venture will allow the company to manufacture for other brands, further expanding its footprint in the Android ecosystem.
Jerome Chen, CEO of Vivo India, emphasized the strategic importance of the partnership, stating, “The proposed joint venture will take on part of Vivo’s OEM smartphone orders in India and can also engage in manufacturing various electronic products for other brands. This partnership will complement Vivo India’s existing manufacturing operations effectively”.
Vivo recently celebrated a decade of operations in India and inaugurated a new manufacturing facility in Greater Noida. The 170-acre facility, built with an investment of Rs 3,000 crore, has an annual production capacity of 120 million smartphones. This new plant replaced Vivo’s earlier manufacturing unit, which had a capacity of 40 million units and has since been taken over by Bhagwati Products (Micromax).
The collaboration highlights the government’s ‘Make in India’ initiative, which aims to boost domestic manufacturing and reduce reliance on imports. By leveraging the policy, Vivo aims to make its Indian operations more competitive. However, it remains unclear if the joint venture will also include the export of smartphones.
This is Dixon’s second partnership with a Chinese brand this year. Earlier, it acquired a 50.1% stake in Ismartu India, the manufacturing unit of Transsion Holdings, for Rs 238.36 crore. The Vivo partnership further cements Dixon’s position as a dominant player in India’s smartphone manufacturing sector.
Reports indicate that Vivo had been exploring similar collaborations with other Indian companies, including the Tata Group, but talks fell through over valuation disagreements. This joint venture now sets the stage for both Dixon and Vivo to enhance their market presence and contribute to India’s growing role in global smartphone manufacturing.
