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Jun 17, 2026 Major2
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Indian Government Set to Approve Dixon-Vivo Joint Venture This Month
India's government is expected to approve the Dixon-Vivo joint venture this month, with Dixon holding a 51% stake. The deal will integrate Vivo's Noida manufacturing facility to handle smartphone OEM orders and reduce the Chinese company's risk exposure in India, while market sentiment remains optimistic with Dixon's shares rising 5%.
Quick Facts
Who
Dixon Technologies
What
Government approval of joint venture expected
When
December 2024 - Joint venture agreement signed
Where
India
- Government approval of joint venture expected
- Inter-ministerial panel granted in-principle approval
- Vivo's Noida manufacturing unit to be integrated into JV
- JV to manufacture smartphones and electronic devices
- JV to undertake Vivo's OEM orders and other brands' OEM business
India's government is poised to approve the long-pending joint venture between Dixon Technologies and Chinese smartphone maker Vivo this month, according to sources familiar with the development. The inter-ministerial panel has already granted in-principle approval, with final clearance expected from the Ministry of Electronics and Information Technology (MeitY) following standard procedures. Under the deal signed in December 2024, Dixon Technologies will hold a 51% majority stake in the venture.
The joint venture will focus on manufacturing electronic devices, particularly smartphones, with Vivo's manufacturing facility in Noida set to be integrated into the new entity. The move is designed to reduce Vivo's operational risk exposure in India while enabling the company to fulfill its original equipment manufacturing (OEM) orders for smartphones domestically. Additionally, the facility will undertake OEM manufacturing for electronic products of other brands, diversifying revenue streams beyond Vivo's products.
Market sentiment around the deal has been positive, reflected in a 5% rise in Dixon Technologies share price on Wednesday, with the stock reaching an intraday high of Rs 12,859 per share on the NSE. The company has demonstrated strong financial performance, closing the 2025-26 fiscal year with total revenue of Rs 48,873 crore, with mobile phone and contract manufacturing contributing Rs 44,257 crore. Meanwhile, Vivo maintains a dominant position in India's smartphone market, having sold approximately 3.5 crore handsets in 2025, compared to Dixon's production volume of around 3.2 crore units.
Investment analysts have responded positively to the development, with JPMorgan retaining an 'overweight' rating on Dixon Technologies and maintaining a target price of Rs 12,700 per share. The joint venture is expected to strengthen both companies' manufacturing capabilities in India while providing a structural solution to Vivo's regulatory concerns in the country.
Topics
Why This Matters
This joint venture represents a critical structural solution for Vivo to address regulatory concerns while maintaining manufacturing presence in India's rapidly growing smartphone market. For Dixon Technologies, the deal diversifies revenue through OEM manufacturing for multiple brands and strengthens its position as India's leading contract manufacturer. For investors and stakeholders, this signals improved stability in the India-China tech manufacturing relationship and validates the viability of foreign companies operating domestically through local partnerships.
Timeline & Sources
Jun 17, 2026
WireReports emerge that government is likely to clear Dixon-Vivo joint venture this month
Jun 18, 2026
WireDixon Technologies shares rise 5% to intraday high of Rs 12,859 per share on NSE