Dixon Technologies and vivo India Sign Binding Term Sheet for Proposed Smartphone OEM Joint Venture
Dixon Technologies (India) Limited and vivo Mobile India Private Limited have signed a binding term sheet to establish a proposed joint venture (JV) focused on the Original Equipment Manufacturer (OEM) business of electronic devices, including smartphones. The agreement was formalized on December 15, 2024.Under the terms of the JV, Dixon Technologies will hold a 51% stake in the entity, while vivo India Private Limited will hold the remaining 49%. It was confirmed that neither company will possess any stake in the other party within the joint venture structure.
The new facility established through this partnership is designed to handle a portion of vivo’s OEM orders for smartphones in India. Furthermore, the JV has the capability to engage in the OEM business for various electronic products from other brands.
The transaction remains subject to several conditions, including the execution of definitive agreements, completion of customary pre-conditions, and receipt of all applicable regulatory approvals, particularly those related to foreign exchange control laws in India.
Strategic Significance of the Partnership
Mr. Atul B. Lall, Vice Chairman and Managing Director of Dixon, commented on the partnership, noting that it is a pleasure to collaborate with vivo India, an established global brand. He stated that he sees vivo as an ideal strategic partner who shares core values related to quality, engineering prowess, and customer satisfaction. This association, Mr. Lall added, will bolster manufacturing excellence and superior execution capabilities for Dixon while strengthening the company's foothold in the Android smartphone ecosystem in India.
Mr. Jerome Chen, CEO of vivo India, expressed delight at signing the term sheet with Dixon. He stated that the proposed joint venture will take on part of vivo’s OEM orders in India and can also engage in the OEM business for various electronic products from other brands. Mr. Chen noted that this partnership effectively complements the current manufacturing operations of vivo India.
About Dixon Technologies (India) Limited
Dixon Technologies (India) Limited is recognized as a leading design-focused and solutions company in India, involved in manufacturing across consumer durables, lighting, and mobile phones markets. The company’s diverse product portfolio encompasses LED TVs, home appliances such as washing machines, lighting products like LED bulbs and tubelights, mobile phones, wearables, hearables, refrigerators, and Telecom and IT Hardware products. Dixon also provides reverse logistics solutions, including repair and refurbishment services for LED TV panels.
DIXON Stock Price Movement
Shares of Dixon Technologies (India) are gaining sharply as of 1:58 PM, trading at ₹12,767 after surging by 4.35% in the live market. The stock’s current momentum is supported by a traded volume of 1.34 million shares, signaling robust buying interest.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.