Dixon Tech Forms JV with Vivo for Smartphone Manufacturing

New Delhi, Aug 12 (PTI) Electronics and manufacturing services major Dixon Technologies (India) Ltd on Wednesday said it is in the process of incorporating a new subsidiary, Adivistar Electronics India Pvt Ltd, which will undertake the original equipment manufacturing (OEM) business of electronic devices, including smartphones.

Dixon will hold a 51 per cent equity stake in the new entity, involving an initial investment of Rs 2.55 crore, according to a regulatory filing.

Dixon will acquire 25,50,000 equity shares of the new subsidiary at a face value of Rs 10 per share. The transaction will be a cash consideration.

The Ministry of Electronics and Information Technology (MeitY) has approved a proposed investment by Vivo Mobile India Pvt Ltd in the new subsidiary, the filing added.

The joint venture proposal of Dixon and Vivo was cleared by the government in the second week of July. The two companies signed a term sheet on December 15, 2024, to form the joint venture.

Dixon Technologies expects to complete the transaction of a new joint venture with Chinese smartphone firm Vivo in two months, and its revenue will start reflecting in its balance sheet from the October-December quarter.

The JV with Vivo is expected to significantly increase the consolidated mobile production capacity of Dixon Technologies. At present, Vivo leads the Indian smartphone market in volume terms.

The Chinese smartphone company is estimated to have sold 3.5 crore handsets in 2025, while Dixon’s mobile phone production volume was around 3.2 crore units.

Source: PTI   By Rediff Money Desk, New Delhi

DISCLAIMER – This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.

You May Like To Read