The Centre has approved the proposed joint venture between Dixon Technologies and Vivo Mobile India, paving the way for the two companies to expand smartphone manufacturing in the country. The clearance is seen as a major boost for India’s electronics manufacturing sector and the government’s ‘Make in India’ initiative.
The approval has been granted under Press Note 3, which governs foreign investments from countries sharing a land border with India. Under the agreement, Dixon Technologies will hold a 51% stake in the new venture, while Vivo India will own the remaining 49%, ensuring majority Indian ownership in line with government regulations.
Following the approval, the two companies have signed definitive joint venture and shareholders’ agreements to formally establish the new entity. The venture will manufacture smartphones and electronic devices in India, primarily for Vivo, while also producing devices for other brands as an original equipment manufacturer (OEM).
The partnership is expected to significantly increase local smartphone production and strengthen India’s position as a global electronics manufacturing hub. Industry experts believe the venture will improve supply chain efficiency, generate employment and reduce dependence on imports.
The approval comes after months of regulatory scrutiny and is being viewed as an important milestone for both companies. For Vivo, it provides a stable manufacturing base in one of its largest markets, while Dixon stands to further strengthen its leadership in the electronics manufacturing services (EMS) segment.
Investors reacted positively to the development, with Dixon Technologies’ shares gaining in early trade as the government nod removed a key uncertainty surrounding the deal. Analysts expect the partnership to boost the company’s manufacturing volumes and support long-term revenue growth.
The joint venture also reflects India’s evolving strategy of encouraging global companies to manufacture locally through partnerships with Indian firms. As smartphone demand continues to grow, the new venture is expected to play a significant role in expanding domestic production and enhancing India’s export potential.