Both companies had signed a binding term sheet in December 2024 under which the electronics manufacturer will hold 51% of the share capital, while Vivo India will have 49% share.
The joint-venture was pending government approval under the Press Note 3 of 2020 which mandates companies from countries sharing a land border with India to require government approval to invest in India.
“We would also like to intimate that VMI (Vivo Mobile India) has today received approval of Government of India vide letter dated July 8, 2026 in terms of Press Note 3 of 2020 issued by the Department of Promotion of Industry and Internal Trade, Ministry of Commerce and Industry for incorporation of the JV Co (Joint Venture Company) and subscription of shares of JV Co by VMI,” Dixon said in an exchange filing.
The joint-venture entity will act as the original equipment manufacturer (OEM) of electronic devices including smartphones for Vivo Mobiles in India. The entity can also engage in manufacturing for other brands, Dixon said.
The entity will be infused with Rs 5 crore in initial paid up share capital with Dixon contributing 51% of the amount, while Vivo will pitch in with the remaining amount.
Dixon’s management has been bullish on the joint-venture agreement unlocking further manufacturing volumes for the company, which has become one of the largest smartphone makers in India.In a recent call with investors, Dixon managing director Atul Lall said the partnership is projected to add 20-22 million smartphone units annually over time to Dixon’s business. That accounts for around two-thirds of Vivo’s total annual production footprint in India, which sits at roughly 35 million handsets.
Lall said once the partnership is fully operationalised, the scale is expected to generate an incremental revenue of Rs 30,000 crore per annum. Dixon expects operations under the joint-venture to kick off in the December quarter of the current fiscal year, with 11 million expected to be contributed in FY27 order volume, with a full ramp up expected in FY28.