The expansion of Dixon’s smartphone OEM manufacturing will be undertaken through a joint venture with Vivo Mobile India, after obtaining government approval of the joint venture proposal.
The joint venture will manufacture smartphones and other electronics in India and provide an opportunity for more brands to be included. The government gave approval to Vivo Mobile India’s application for the joint venture on 8 July 2026, in accordance with regulations that apply to investments from neighboring countries of India.
Dixon will take up 51 per cent of the joint venture while Vivo Mobile India will own the other 49 per cent share in the joint venture.
Vivo manufacturing assets that will be incorporated into the joint venture include:
Part of the OEM manufacturing for Vivo’s smartphones in India will be done in the joint venture. At the end of the deal, it will take up some manufacturing assets of Vivo and arrange to manufacture and package Vivo products.
Vivo is likely to also bring its Noida factory to the joint venture, thus allowing the company to adopt an asset-light approach for manufacturing its products in India. This deal will not only help Dixon in increasing production capacity but will also allow Vivo to keep on manufacturing its phones in India via an entity that is controlled by Indians.
It is worth noting that this deal was first proposed in December 2024, when Dixon and Vivo signed a binding term sheet. However, the agreement was still pending regulatory approvals as per the foreign exchange and investment regulations of India.
Increasing smartphone manufacturing capacity:
The news came as Dixon kept increasing its footprint in India’s electronics manufacturing landscape. Dixon manufactured about 3.2 crore mobile phones in 2025, while Vivo sold about 3.5 crore handsets during the same period. Revenue of Dixon stood at ₹48,873 crore in FY26, out of which ₹44,257 crore was contributed by mobile phones and contract manufacturing.
It would help in increasing smartphone manufacturing volumes for the company and enhance its importance in Android manufacturing eco-system. According to industry estimates, the production under this joint venture could start in December quarter of FY27.
Dixon sees the alliance as part of a larger strategy of building manufacturing capacities through joint ventures and technology alliances. Just earlier this year, the firm finalized a separate joint venture with Longcheer Intelligence for the production of smartphones, tablets, AI PCs, and other electronics.
With the Vivo joint venture, Dixon has yet another manufacturing route while Vivo has an arrangement to build up manufacturing capacity without fully owning the manufacturing assets on their own books.
