Dixon Technologies shares in focus as Vivo India JV gets government approval, agreements signed

Dixon Technologies shares will be in focus on Friday, July 10, after the company signed definitive agreements with Vivo Mobile India Pvt. Ltd. (VMI) to establish a joint venture (JV) for manufacturing electronic devices, including smartphones, in India.

In an exchange filing, Dixon Technologies said it has executed a joint venture agreement (JVA) with Vivo Mobile India to incorporate a joint venture company (JV Co.) that will undertake the original equipment manufacturer (OEM) business for electronic devices, including smartphones, subject to customary conditions precedent.

The company has also signed a shareholders' agreement with Vivo Mobile India to govern the rights, obligations, management and operations of the joint venture after its incorporation.

Govt approval

Dixon said Vivo Mobile India has received approval from the Government of India, dated July 8, 2026, under Press Note 3 of 2020 issued by the Department for Promotion of Industry and Internal Trade (DPIIT), allowing the incorporation of the joint venture company and Vivo India's subscription to its shares.

The joint venture will be owned 51% by Dixon Technologies and 49% by Vivo Mobile India. The company clarified that neither Dixon nor Vivo will hold any stake in each other outside the joint venture.

The development follows Dixon Technologies' earlier announcement in December 2024, in which it disclosed signing a term sheet with Vivo Mobile India to explore establishing a joint venture for smartphone manufacturing in India.

Finer details to know

JV Co shall be incorporated to carry on the business as an original equipment manufacturer (OEM) of electronic devices, including smartphones. JV Co. will undertake part of VMI’s OEM smartphone orders in India and can also engage in OEM business for other brands' electronic products.

Size of the entity(ies)

The JV Co is yet to be incorporated. The share capital of the JV Co will be held in the proportion of 51:49 by the Company and VMI, respectively.

Rationale and benefit expected

Dixon Tech said that this association will bolster the company’s manufacturing excellence and superior execution abilities. This partnership will further strengthen the company’s foothold in the Android smartphone ecosystem in India in line with Dixon’s strategic goals.

Key points

• Post incorporation, JV Co will become a subsidiary of the Company as per the Companies Act, 2013.

• Issuance of equity shares by the JV Co to the Company on closing of the Proposed Transaction will be a related party transaction between the Company and JV Co.

• The transaction will be carried out on an arm’s length basis. The JV Co will procure the relevant valuation reports as required under the applicable laws.

• Except to the extent of the share capital to be held by the Company in the JV Co., the promoter/ promoter group/ group companies shall have no interest in the JV Co.

• Neither the company nor VMI will have any stake in each other.

• Further, the Company and VMI are not related parties as of the date.