Dixon, Vivo join forces for smartphone manufacturing

Dixon Technologies and Vivo India have announced plans to establish a joint venture. The companies signed a binding term sheet on December 15, outlining a partnership aimed at strengthening India’s smartphone manufacturing ecosystem.

Under the agreement, Dixon will hold a 51% stake in the joint venture, while Vivo India will own the remaining 49%. Both companies will retain their independence, with no cross-holdings outside the venture, ensuring focused operations and preserving their individual strategic priorities.

The proposed collaboration is subject to regulatory approvals, fulfilment of necessary conditions, and execution of definitive agreements. The venture will primarily handle part of Vivo India’s original equipment manufacturing (OEM) orders and may expand to manufacture electronic products for other brands, according to an official statement.

Atul B. Lall, Vice Chairman and Managing Director of Dixon Technologies, expressed optimism about the partnership. “Vivo India, with its strong brand presence and commitment to quality, is an ideal partner for us. This association will leverage Dixon’s manufacturing excellence and Vivo’s leadership in the Indian market to create a robust, future-ready organization,” Lall said.

Jerome Chen, CEO of Vivo India, echoed similar sentiments, highlighting Dixon’s extensive experience in localized management and manufacturing expertise. “This partnership will not only enhance Vivo’s manufacturing operations in India but also unlock new opportunities for OEM business across other brands,” Chen remarked.

The joint venture aligns with Dixon’s strategy to solidify its position in the Android smartphone ecosystem, while Vivo aims to strengthen its local manufacturing capabilities, reflecting the companies’ shared commitment to sustainable growth and innovation in India.

This partnership is expected to bolster India’s smartphone manufacturing sector, fostering increased collaboration and technological advancements.