India Approves Dixon Technologies and Vivo Manufacturing Joint Venture

The Government of India approved a joint-venture partnership between Dixon Technologies and Vivo Mobile India on July 8, 2026, to manufacture smartphones and electronic devices. The deal, first announced in December 2024, faced delays due to Press Note 3 of 2020, which requires heightened scrutiny for investments from countries sharing a land border with India. The approval follows a revised framework that allows specific non-controlling beneficial ownership for such investors.

Under the definitive agreements, Dixon Technologies will hold a 51 percent stake and Vivo Mobile India will hold 49 percent, with an initial paid-up share capital of Rs 5 crore. The joint venture will act as an original equipment manufacturer (OEM), acquiring specific assets from Vivo to produce handsets for the brand and potentially other electronics for third parties. Operations are expected to begin in the December quarter of the current fiscal year or the third quarter of FY27.

Dixon Technologies expects the partnership to add 20 to 22 million smartphone units annually, potentially generating Rs 30,000 crore in incremental annual revenue. Market analysts from Nomura project Dixon's domestic manufacturing market share could rise to 35-38 percent, while JPMorgan and Chase Bank have raised revenue estimates for the company for FY27-29. The collaboration aligns with the Make in India initiative and the Production Linked Incentive scheme to reduce import reliance.