Government of India (GoI) Approves Dixon-Vivo Joint Venture for Domestic Smartphone Manufacturing

Key facts

• The Government of India (GoI) has approved the joint venture (JV) between Dixon Technologies and Vivo Mobile India for manufacturing smartphones and other electronic devices.
• Under the JV, Dixon Technologies will hold a 51% stake, while Vivo Mobile India will own the remaining 49%.
• The JV will operate as an original equipment manufacturer (OEM) and will manufacture a part of Vivo’s smartphone orders in India.
• Motilal Oswal projects a 33% CAGR in revenue, 37% CAGR in EBITDA, and 36% CAGR in profit after tax for Dixon between FY26 and FY28.
• The brokerage expects the JV to add an annual manufacturing capacity of 20-22 million smartphone units.
• The JV will begin with an initial paid-up share capital of ₹5 crore, contributed in a 51:49 ratio.
• Production from the JV is expected to start in the third quarter of FY27 (Q3FY27).
• Dixon expects nearly 67% of Vivo Mobile India’s production volumes to shift to the new JV.