Dixon Technologies and vivo Mobile Finalize Agreements for New OEM Joint Venture in India

Dixon Technologies and vivo Mobile Finalize Agreements for New OEM Joint Venture in India​

Dixon Technologies (India) Limited has finalized crucial agreements with vivo Mobile India Private Limited (VMI) to establish a joint venture company (JV Co). This collaboration is aimed at capturing opportunities in the original equipment manufacturer (OEM) business of electronic devices, including smartphones, in the Indian market.

The execution involves two key documents: a Joint Venture Agreement (JVA) and a Shareholders' Agreement (SHA), building upon a term sheet previously shared by Dixon Technologies on December 15, 2024.

A significant operational development is that VMI has received approval from the Government of India regarding the incorporation of the JV Co and the subscription of shares by VMI, as reported by the Department of Promotion of Industry and Internal Trade, Ministry of Commerce and Industry in a letter dated July 8, 2026.

Joint Venture Structure and Scope​

The newly established venture is structured to operate domestically, focusing on becoming an OEM of electronic devices. The share capital of the JV Co will be held by Dixon Technologies (India) Limited at 51%, and VMI will hold the remaining 49%. Neither company will have a stake in each other within this joint venture structure.

The core parameters of the proposed transaction are detailed below:


The scope of work for the JV Co is extensive. The company will carry out part of VMI's OEM orders for smartphones in India and can also engage in the OEM business of various electronic products from other brands.

Strategic Terms and Governance​

Under the Joint Venture Agreement (JVA), both Dixon and VMI committed to a structure where both companies hold 51% and 49% stakes, respectively, through cash consideration. The JV Co will be responsible for procuring valuation reports as required by applicable law.

Further terms within the JVA include provisions that at the closing of the Proposed Transaction, the JV Co will purchase specific manufacturing assets via an asset purchase agreement and enter into a manufacturing and packaging agreement with VMI to handle part of VMI's OEM orders.

Regarding governance, the Shareholders' Agreement (SHA) is designed to govern the inter-se shareholder relationship concerning the management and operations of the JV Co. The SHA provides that both Dixon and VMI will have the right to nominate two directors each on the board of the JV Co. Both parties will also benefit from information and inspection rights related to the JV Co.

The transaction is strategically aimed at bolstering Dixon Technologies' manufacturing excellence and strengthening its foothold in the Android smartphone ecosystem within India, aligning with the company’s strategic objectives.

Investment Details and Timeline​

While the JV Co is yet to be incorporated, financial and operational terms for the investment have been defined. The acquisition process will ensure that both the Company (51% stake) and VMI (49% stake) hold their respective stakes via cash consideration. The subscription price for the shares of the JV Co will be determined based on valuation reports to be procured by the JV Co in accordance with applicable law.

The outer deadline set for the completion of conditions precedents for the transaction is one year from the execution date of the JVA, or such another date mutually agreed upon in writing by Dixon and VMI. The venture's initial capital base stands at INR 5 crore.

DIXON Stock Price Movement​

Dixon Technologies (India) Limited shares rallied today, settling at ₹13,477 after gaining 4.11%. The stock saw significant trading volume during the session, with 825,754 shares changing hands throughout the day.