Dixon Tech and Vivo partner to set up electronic manufacturing venture

By Staff Report December 16, 2024 6:36 pm IST

Dixon Technologies (India) Limited and Chinese smartphone maker Vivo’s India business have agreed to a joint venture. The joint venture will become an original equipment manufacturer (OEM) and produce electronic devices.

Electronics contract manufacturing company  Dixon Technologies (India) Limited and Chinese smartphone maker Vivo’s India business have entered into a binding term sheet for a proposed joint venture, with Dixon holding 51% of the shares. The entity that will house the JV will become an original equipment manufacturer (OEM) like Dixon and make electronic devices, including smartphones.

The facility will handle Vivo’s OEM orders of smartphones in India and can also undertake OEM business for other brands’ electronic products. Chinese smartphone makers Vivo, Oppo, and Xiaomi are exploring the possibility of integrating Indian partners into their manufacturing operations, with discussions involving joint ventures where Indian entities could hold majority ownership.

Atul B. Lall, vice chairman and managing director of Dixon, said, “We believe that this association will bolster our manufacturing excellence and superior execution abilities and Vivo’s leadership in the Indian business ecosystem,” adding that the partnership would strengthen Dixon’s strong foothold in the Android smartphone ecosystem in India. There is immense potential to further build on shared capabilities together in times to come, to deliver sustainable growth for the proposed venture.”

Dixon’s potential takeover of Vivo’s facilities will be determined in the coming months. Vivo announced in 2019 a ₹7,500 crore investment to boost manufacturing in India.

Jerome Chen, CEO of Vivo India, said, “We are delighted to sign a term sheet with Dixon which boasts rich localised management experience and outstanding professional manufacturing prowess. The partnership would effectively complement the current manufacturing operations of Vivo India.”

The transaction will require the execution of definitive agreements, completion of customary conditions, and receipt of regulatory approvals, including those required under Indian foreign exchange control laws.