Dixon Technologies (India) Limited has executed a joint venture agreement and a shareholders' agreement with vivo Mobile India Private Limited (VMI) to form a joint venture company for original equipment manufacturer (OEM) business of electronic devices, including smartphones.
The JV company's share capital will be held in a 51:49 proportion by Dixon Technologies and VMI, respectively. The initial paid-up share capital is set at Rs 5 crore, to be contributed in the same ratio. Neither company will hold any stake in each other.
VMI received government approval on July 8, 2026 under Press Note 3 of 2020 from the Department of Promotion of Industry and Internal Trade for the incorporation of the JV and subscription of shares by VMI. Dixon Technologies had informed stock exchanges about the proposed joint venture on December 15, 2024.
The JV will undertake part of VMI's OEM orders of smartphones in India and may also engage in OEM business of other electronic products. At closing, the JV will purchase certain manufacturing assets through an asset purchase agreement and enter into a manufacturing and packaging agreement with VMI.
Post incorporation, the JV will become a subsidiary of Dixon Technologies. VMI and Dixon Technologies each have the right to nominate two directors on the board of the JV. The outer date for completion of conditions precedent is one year from the execution of the joint venture agreement.
The subscription price for shares at closing will be based on valuation reports to be procured by the JV.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.