Dixon-Vivo JV approval for 51% stake seen June 2026

Government clearance seen this month

The government is poised to approve the long-pending joint venture between Dixon Technologies and Vivo this month, according to sources familiar with the process. The proposal has been under scrutiny because it involves a Chinese-linked smartphone brand operating in India. People tracking the development said an inter-ministerial committee has already given preliminary approval. The proposal is expected to move through the Ministry of Electronics and Information Technology (MeitY) through the standard procedure. The joint venture was first established in December 2024, with Dixon set to hold a controlling 51% stake.

What the JV is designed to do

The new entity is intended to focus on manufacturing electronic devices, with smartphones as the key product line. The structure outlined earlier is a 51:49 partnership, with Dixon holding 51% and vivo India holding 49%. The arrangement also specifies that neither partner will hold equity in the other outside the JV. Under the OEM model described by the companies, the facility will undertake a part of Vivo’s smartphone OEM orders in India. It may also take up OEM work for other brands across electronic products, widening the manufacturing scope beyond a single client.

Noida facility to be folded into the venture

A key operational element is the integration of Vivo’s manufacturing facility in Noida into the joint venture. Sources said this step is expected to reduce Vivo’s risk exposure in India by placing local manufacturing under a JV structure with Indian majority ownership. The Noida facility is expected to execute a portion of Vivo’s OEM smartphone manufacturing contracts for the domestic market. The same site may also participate in OEM production for other brands, consistent with the JV’s broader mandate. While the exact split of production by customer was not disclosed, the operating plan is clearly centered on using the existing Noida manufacturing base.

Regulatory pathway and why it matters

The proposed transaction is awaiting clearances involving MeitY and the Ministry of Home Affairs (MHA), as described in market commentary around the deal. Because Vivo is a Chinese-linked entity, the JV is subject to heightened scrutiny for security and investment compliance under Press Note 3 regulations. Separately, media reports have also linked the approval timeline to an ongoing Enforcement Directorate probe into Vivo under the Prevention of Money Laundering Act (PMLA). Dixon’s management has characterised the delay as procedural and has said it remains engaged with the government. Even with preliminary inter-ministerial clearance, the process requires completion of regulatory approvals before the structure can be implemented.

What Dixon has said on timing and execution

On CNBC-TV18, Dixon Founder and Chairman Sunil Vachani said the company remains hopeful on regulatory approval for the Vivo joint venture, though the management did not provide a fresh timeline. In an earnings interaction referenced in the report, the management had indicated approval was expected soon and the venture could add 12-15 million units of manufacturing volume in the first year of operations. In a separate earnings-call context, Dixon management said the JV would involve transferring around 67% of the volume to the JV and spoke about an annualised volume closer to 22 million units. Management also indicated it could take another 45 days to consummate the transaction after approvals. These operational timelines are important because they determine how much of any additional volume is captured within a financial year.

Scale of the revenue pool tied to the deal

Market commentary around the transaction has repeatedly pointed to the scale of Vivo India’s local manufacturing business. Vivo India was reported to have approximately ₹30,000 crore revenue in the previous cycle, making the asset base meaningful for an EMS partner seeking scale. Management commentary also referred to an annualised revenue potential of around ₹25,000-30,000 crore in the next financial year, subject to approvals and ramp-up. While final valuation and stake transfer terms are still expected to be finalised, the market has been watching the proposal as a step change for Dixon’s smartphone EMS presence. The company has also indicated the venture could improve average selling prices compared with its current portfolio.

Market reaction and parallel expansion plans

Dixon Technologies shares rose over 2% on Thursday after the company outlined plans to enter the data centre and IT hardware segment through a partnership with a Taiwanese company. Vachani said the Taiwanese partner is a global leader in IT hardware and data centre-related solutions, and that Dixon plans to manufacture laptops and desktops in India. The company also announced a new manufacturing facility being set up in Chennai, expected to become operational within eight to ten months. This IT hardware plan sits alongside the Vivo JV, and the stock’s move reflected investor focus on multiple growth levers. However, the Vivo JV remains dependent on regulatory clearance and definitive documentation.

Why the JV structure is a key shift for EMS

The proposed venture fits the government’s broader push for domestic ownership in critical parts of the electronics supply chain. For Dixon, a majority stake structure shifts it from being primarily a contract manufacturer to a JV partner with a controlling interest in a large manufacturing operation. For Vivo, folding the Noida manufacturing facility into a JV can reduce perceived operating and compliance risk by aligning the manufacturing structure with Indian majority ownership. The partnership is also positioned as supportive of India’s local manufacturing ecosystem because it keeps OEM execution inside the country and allows the facility to take on work for other brands. Still, the final impact depends on the timing of approvals and how quickly volumes are migrated into the joint venture.

Key facts at a glance

Conclusion

The Dixon-Vivo joint venture is now nearing a decision point, with sources indicating government approval could come this month after preliminary inter-ministerial clearance. If cleared, the structure would bring Vivo’s Noida facility under a JV with Dixon holding 51%, and the venture would execute part of Vivo’s OEM smartphone production while also serving other brands. Dixon’s management has maintained that approvals are close, while acknowledging delays and the procedural nature of clearances. The next milestones for investors to track are an official government notification, completion of definitive agreements, and the final valuation and stake transfer terms that enable execution.