The Indian government has approved the joint venture between Dixon Technologies and Vivo Mobile India under Press Note 3. The approval allows the two companies to set up a new manufacturing business in India that will produce Vivo smartphones as well as devices for other brands.
Dixon Technologies and Vivo Mobile India have received government approval to move ahead with their smartphone manufacturing joint venture in India. The approval was required under Press Note 3 of 2020, which mandates government clearance for investments from countries that share a land border with India.
In a stock exchange filing, Dixon said the Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, approved the proposal on July 8.
Under the agreement, Dixon will hold a 51% stake in the new company, while Vivo Mobile India will own the remaining 49%. With the approval now in place, Vivo can invest in the joint venture and expand its manufacturing operations in India through the new company.
The venture will manufacture smartphones and other electronic products. Most of the production will be for Vivo-branded smartphones, but the company will also be able to manufacture devices for other brands. This is expected to help Dixon expand its contract manufacturing business and increase its production capacity.
Dixon and Vivo first signed a binding agreement for the partnership in December 2024. After receiving government approval, the two companies signed the final joint venture and shareholders’ agreements, which outline how the new company will be owned and managed.
Both companies will make an initial investment of ₹5 crore in proportion to their respective shareholding. Once the company is incorporated under the Companies Act, 2013, it will become a subsidiary of Dixon. The incorporation process is expected to be completed within a year. After that, the new company will acquire certain manufacturing assets and take over part of Vivo’s smartphone production in India.
Dixon expects the partnership to significantly boost its smartphone manufacturing business. The company has previously said the venture could increase its annual smartphone production by 20–22 million units. Once fully operational, it is also expected to generate an additional ₹30,000 crore in annual revenue.
Production under the joint venture is expected to begin in the December quarter of the current financial year. Dixon estimates that around 11 million smartphones will be manufactured in FY27 before production is expanded further in FY28.
The approval is significant because it was granted under Press Note 3, a policy introduced in 2020 during the COVID-19 pandemic. The rule requires government approval for investments from China and other countries that share a land border with India. It remains in force due to broader national security concerns.
Read Article: SK Hynix CEO Says Memory Chip Shortage Could Peak in 2027 as AI Demand Continues to Grow
