Dixon Technologies, a leading Indian electronics manufacturer, and Vivo India, a prominent global smartphone brand, have entered into a strategic partnership to create a joint venture aimed at manufacturing electronic devices, including smartphones, under the Original Equipment Manufacturer (OEM) model. This collaboration signifies a major milestone in India’s expanding smartphone market and strengthens the local manufacturing ecosystem.
Under the agreement, Dixon Technologies will hold a controlling 51% stake in the joint venture, while Vivo India will own the remaining 49%. Despite their partnership, both companies will retain their independence, with no direct ownership in each other. The joint venture will primarily focus on handling a portion of Vivo’s OEM smartphone orders in India, while also exploring manufacturing opportunities for other brands.
The joint venture is still subject to regulatory approvals and the finalisation of definitive agreements. Once these approvals are in place, the venture will be able to expand its operations, further contributing to India’s smartphone manufacturing landscape. The companies have expressed strong optimism about the venture’s potential to drive growth and establish a larger presence in the Indian market.
Atul B. Lall, Vice Chairman and Managing Director of Dixon Technologies, expressed enthusiasm about the partnership, stating, "It gives us immense pleasure to partner with Vivo India, which is an iconic global brand. We see them as an ideal strategic partner that shares our core values of quality, engineering prowess, and customer satisfaction." Lall emphasized that this collaboration would bolster Dixon's manufacturing capabilities while helping Vivo strengthen its position in the Indian business ecosystem.
He further explained that the partnership is aligned with Dixon's long-term goals of enhancing its presence in India’s Android smartphone ecosystem. "There is immense potential to build on shared capabilities and deliver sustainable growth for the proposed venture," Lall added.
Jerome Chen, CEO of Vivo India, also shared his excitement about the joint venture. He highlighted the synergy between Dixon Technologies and Vivo, emphasizing Dixon’s rich local management experience and expertise in professional manufacturing. Chen remarked, "We are delighted to sign a term sheet with Dixon, which boasts outstanding manufacturing prowess and rich local management experience." He added that the collaboration would complement Vivo’s existing manufacturing operations, helping to expand its production capacity in India.
Chen further mentioned that the joint venture would not only manage part of Vivo's OEM smartphone orders but also explore opportunities to manufacture OEM products for other electronic brands, thus broadening its business scope.
The new venture is expected to contribute to India’s ambition of becoming a global hub for smartphone manufacturing. As both Dixon Technologies and Vivo India combine their strengths, the venture will play a crucial role in enhancing local manufacturing capacity, promoting technological innovation, and creating job opportunities.
With a focus on quality, efficiency, and customer satisfaction, the collaboration aims to drive growth in India’s electronic and smartphone manufacturing sector, thereby strengthening the country’s position in the global tech landscape.
Conclusion
The joint venture between Dixon Technologies and Vivo India marks a significant development in India’s smartphone manufacturing landscape. By combining Dixon's expertise in local manufacturing with Vivo’s global brand presence, this partnership is poised to boost production capabilities and further establish India as a key player in the global electronics market.
The venture not only strengthens Vivo's position in India but also aligns with the country's broader goals of promoting local manufacturing and reducing dependency on imports. With potential expansion into OEM production for other brands, this collaboration holds great promise for driving sustainable growth, technological innovation, and job creation in India’s electronics sector.