The Indian government has approved a joint venture between Dixon Technologies and Chinese smartphone maker Vivo Mobile India to set up a smartphone manufacturing company in India, according to a report by Reuters in The Hindu BusinessLine. Dixon Technologies announced the approval on Thursday, July 9, 2026.
Joint Venture Structure and Regulatory Approval
Under the approved joint venture, Dixon Technologies will hold a 51% stake, while Vivo Mobile India will own the remaining 49%. The ownership split reflects the regulatory framework governing investments from countries that share a land border with India, which require senior-level government clearance. Such investments typically face tougher scrutiny under domestic regulations, as noted in the report.
| Company | Ownership Stake |
|---|---|
| Dixon Technologies | 51% |
| Vivo Mobile India | 49% |
Manufacturing Scope and OEM Capability
The joint venture will manufacture smartphones and other electronic devices as an original equipment manufacturer (OEM) in India. Initially, it will undertake Vivo's smartphone production orders, according to Dixon's statement. Additionally, the venture is authorised to manufacture electronic products for other brands, expanding its potential customer base beyond Vivo.
Implications for Indian Electronics Manufacturing
This approval enables Dixon Technologies to strengthen its role as a leading contract manufacturer in India, while allowing Vivo to maintain a local production presence amid heightened regulatory oversight. The joint venture's OEM capability could attract other global brands looking to leverage India's manufacturing ecosystem, as the venture is not restricted to producing only for Vivo.
- Dixon Technologies gains increased production capacity and a strategic partnership with a major smartphone brand.
- Vivo Mobile India secures a compliant manufacturing base in India under the joint venture structure.
- The venture can pursue contracts from other brands, potentially diversifying its production portfolio.
The approval marks a milestone for both companies in navigating India's sensitive-border investment rules, which mandate government clearance for investments from neighbouring nations. Dixon Technologies said on Thursday that the joint venture will be able to manufacture electronic products for other brands as well.
The companies will now proceed to set up the manufacturing company, though no specific timeline for production start has been disclosed in the announcement.
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