Dixon Technologies and Vivo India have announced a new joint venture to manufacture electronic devices, including smartphones, under the Original Equipment Manufacturer (OEM) model. The collaboration marks a significant step in strengthening local manufacturing capabilities in India’s growing smartphone market.
Under the terms of the agreement, Dixon will hold a 51 per cent stake in the joint venture, while Vivo India will own the remaining 49 per cent. Despite the partnership, both companies will remain independent, with no ownership in each other.
The joint venture will handle a portion of Vivo’s OEM smartphone orders in India. Additionally, it plans to manufacture OEM products for other brands, diversifying its portfolio. However, the venture is still subject to regulatory approvals and the finalisation of definitive agreements.
Speaking about the partnership, Atul B. Lall, Vice Chairman and Managing Director of Dixon Technologies, said “It gives us immense pleasure to partner with Vivo India, which is an iconic global brand. We see them as an ideal strategic partner that shares our core values of quality, engineering prowess, and customer satisfaction. This association will bolster our manufacturing excellence and Vivo’s leadership in the Indian business ecosystem.”
He added that the partnership aligns with Dixon’s goal of strengthening its position in India’s Android smartphone ecosystem. “There is immense potential to further build on shared capabilities to deliver sustainable growth for the proposed venture,” Lall said.
Vivo India’s CEO, Jerome Chen, also highlighted the synergy between the two companies. “We are delighted to sign a term sheet with Dixon, which boasts rich local management experience and outstanding professional manufacturing prowess.”
Chen noted that the partnership would complement Vivo’s existing manufacturing operations and expand its production capacity in India. “The proposed joint venture will undertake part of Vivo’s OEM orders for smartphones in India and can also engage in OEM business of various electronic products of other brands,” Chen added.