From term sheet to signed agreements
Dixon Technologies has executed a joint venture agreement and a shareholders' agreement with vivo Mobile India Private Limited (VMI) to incorporate a joint venture company in India, converting a term sheet the two disclosed in December 2024 into binding commitments. Per the filing, the JV company will operate as an original equipment manufacturer (OEM) of electronic devices, including smartphones, and will take on part of VMI's OEM smartphone orders in India while remaining free to do OEM work for other brands. Dixon and vivo will hold no stake in each other.
Structure and government clearance
Dixon will hold the majority position in the JV, making it a subsidiary under the Companies Act, 2013. The filing states that the Government of India, by a letter dated 8 July 2026, approved VMI's participation under Press Note 3 of 2020 — the rule governing foreign investment from countries sharing a land border with India. Each party will nominate two directors to the JV board, and both hold information and inspection rights. The company described the transaction as arm's-length, with valuation reports to be procured before closing.
What still has to happen
The JV company is not yet incorporated. Completion is subject to customary conditions precedent and statutory approvals, with an outer date of one year from execution of the JV agreement, or such other date as the parties may agree in writing. At closing, the JV will purchase certain manufacturing assets and enter into a manufacturing and packaging agreement with VMI. Dixon framed the association as strengthening its foothold in the Android smartphone ecosystem in India.