Vivo will transfer its Noida manufacturing unit to the new joint venture with Dixon Technologies as it shifts towards an asset-light business model in India.
Highlights
- Government approves Vivo-Dixon joint venture after around 18 months.
- Dixon Technologies will hold a 51% stake, while Vivo Mobile India will own 49%.
- Vivo’s Noida manufacturing plant will be transferred to the JV.
- The JV will manufacture Vivo smartphones and other electronics as an OEM.
- Vivo plans to adopt an asset-light business model in India.
- Dixon produced around 3.2 crore phones in FY26, while Vivo sold an estimated 3.5 crore handsets in 2025.
Chinese smartphone maker Vivo is set to restructure its manufacturing operations in India after receiving government approval for its joint venture with homegrown electronics manufacturing services (EMS) company Dixon Technologies. The move marks a significant step in Vivo’s long-term strategy to adopt an asset-light business model while strengthening local manufacturing.
According to sources, Vivo plans to transfer its Noida-based manufacturing facility to the newly approved joint venture. The approval comes nearly 18 months after the two companies first signed an agreement to establish the partnership.
Under the arrangement, Dixon Technologies will hold a 51% stake in the joint venture, while Vivo Mobile India (VMI) will own the remaining 49%. The new entity will function as an original equipment manufacturer (OEM), producing smartphones and other electronic devices in India.
As part of the transaction, the joint venture will acquire selected manufacturing assets from Vivo through an asset purchase agreement. It will also enter into a manufacturing and packaging agreement with Vivo to handle a portion of the company’s smartphone production for the Indian market.
Industry experts believe the move will allow Vivo to reduce its direct investment in manufacturing infrastructure while continuing to expand its presence in one of the world’s fastest-growing smartphone markets. The asset-light approach enables companies to focus more on product development, marketing and sales, while manufacturing is handled through specialised partners.
The partnership is also expected to strengthen Dixon Technologies’ position as India’s leading contract electronics manufacturer. Besides manufacturing Vivo smartphones, the joint venture can also produce electronic products for other brands, creating additional business opportunities.
The scale of the partnership is significant. Vivo is estimated to have sold around 3.5 crore smartphones in 2025, making it one of India’s largest smartphone brands. Meanwhile, Dixon manufactured around 3.2 crore mobile phones during FY26.
Dixon Technologies reported total revenue of ₹48,873 crore in FY26, with its mobile phone and electronics manufacturing business contributing ₹44,257 crore. The collaboration is expected to further boost domestic electronics manufacturing, support the government’s Make in India initiative, and strengthen India’s role as a global smartphone production hub.
