The government has approved the joint venture between Dixon and Vivo for the manufacture of smartphones. The deal has significant implications for the local smartphone production. As per the government’s decision, Dixon Technologies will hold 51 percent stake, while Vivo Mobile India will possess the remaining 49 percent. The firms will share the profits and losses incurred from the sales of smartphones and other electronic products.
Impact on Smartphone Production
The joint venture will manufacture smartphones for the Indian market under the label Vivo. However, the firms will also produce other electronic products for different companies. The venture will boost India’s smartphone production capabilities as the companies set up their manufacturing units.
Background Information
The government has approved the investment proposal by Vivo in India under the Press Note 3 category. This category mandates that the government gives its nod for investment proposals from neighboring countries sharing land borders with India. Furthermore, the decision will also strengthen India’s position in the global smartphone manufacturing map.
Both companies had decided to tie up in a joint venture in December 2024. Therefore, the government’s nod will enable the joint venture between Vivo and Dixon to realize.