In December, Indian electronics manufacturer Dixon Technologies announced signing a binding term sheet with Vivo India – subsidiary of global smartphone manufacturer, Vivo – to enter a new joint venture to make handsets in the country. Under the proposal which was agreed between Dixon Technologies and Vivo India, it said it will hold a 51 per cent stake in the JV, while Vivo India would have the remaining 49%. 

This is a move forward for both companies, as they are strengthening their presence in the Indian market for smartphones. However, despite partnering, Dixon and Vivo India will not buy stakes into each other’s core business, ensuring that both remain independent beyond the joint venture. In this, the joint venture will focus on the objectives, whereas the strategic interests and operational independence of both parties will be preserved. 

Atul B. Lall, Vice Chairman and Managing Director of Dixon Technologies is excited about the tie-up. He said that Vivo has a very strong brand presence, and both companies share the same commitment to quality, engineering expertise, and customer satisfaction. He feels that the collaboration will enhance Dixon’s manufacturing capabilities and help further strengthen its position in the Indian smartphone ecosystem. Lall added that the joint venture will provide a platform for sustainable growth by leveraging the combined expertise of both companies. 

Jerome Chen, CEO of Vivo India, welcomed the joint venture, praising Dixon for his local management experience and manufacturing proficiency. “Part of Vivo’s OEM smartphone orders in India will be handled by this joint venture, while it will also look at OEM manufacturing for other brands,” Chen said. According to him, this will complement Vivo India’s existing operations, boosting its capacity to meet growing demand in the Indian market. The joint venture will be the key to company’s future in India because it will provide both companies with the enhanced manufacturing capabilities along with the reach in India in the highly competitive mobile phone market.