Dixon to own 51% of Vivo JV: stock surges 3.5% on India manufacturing tie-up

Dixon Technologies shares surged 3.5% after government approval for a manufacturing joint venture with China’s Vivo, clearing a partnership first announced in December 2024. Under the deal, Dixon will own 51% of the venture and Vivo the remaining 49%.

The joint venture will acquire certain manufacturing assets from Vivo, produce part of the company’s smartphones in India, and can also manufacture electronic products for other brands. Dixon said the partnership will further strengthen its ‘foothold in the Android smartphone ecosystem in India.’

The approval could become the blueprint for how Chinese smartphone brands expand production in India while navigating the country’s strict foreign investment rules for companies from neighbouring countries. Industry experts said the structure could emerge as the preferred route for other Chinese smartphone makers looking to scale local manufacturing under this framework.

The venture could add 20-22 million smartphones a year to Dixon’s manufacturing volumes, based on Vivo’s current sales. Tarun Pathak, research director at Counterpoint Research, called the deal a ‘win-win,’ saying it gives Dixon greater manufacturing scale and strengthens local value addition, while providing Vivo a policy-aligned structure with long-term operational stability.

The deal comes as India cements its position as a global smartphone manufacturing hub. According to the Ministry of Electronics and Information Technology, the country now produces around 330 million mobile phones annually, making it the world’s second-largest handset manufacturer.