Dixon Technologies (India) Limited has executed definitive agreements with vivo Mobile India Private Limited to form a joint venture for the original equipment manufacturer (OEM) business of electronic devices, including smartphones. The joint venture company will be incorporated in India, with Dixon holding a 51% stake and vivo Mobile India holding the remaining 49%. This strategic partnership is intended to bolster Dixon's manufacturing excellence and strengthen its foothold in the android smartphone and broader electronics ecosystem.

The agreements executed include a joint venture agreement to incorporate the entity and a shareholders' agreement to govern the management and operations. The initial paid-up share capital of the joint venture company will be ₹5 crore, contributed in proportion to the shareholding ratio. Neither company will hold any stake in the other outside of this joint venture. Upon incorporation, the joint venture will become a subsidiary of Dixon Technologies (India) Limited.

vivo Mobile India has received approval from the Government of India, vide a letter dated July 8, 2026, under Press Note 3 of 2020 issued by the Department of Promotion of Industry and Internal Trade. This approval covers the incorporation of the joint venture company and the subscription of shares by vivo Mobile India. The transaction is subject to the completion of customary conditions precedent and receipt of applicable statutory approvals.

The joint venture will undertake part of vivo Mobile India's OEM orders for smartphones in India and can engage in the OEM business of various electronic products for other brands. At the closing of the transaction, the joint venture will purchase certain manufacturing assets through an asset purchase agreement and enter into a manufacturing and packaging agreement with vivo Mobile India.

Joint Venture Structure

The key parameters of the joint venture are outlined below:

Governance and Transaction Terms

The shareholders' agreement provides for both parties to nominate two directors each to the board of the joint venture company. Additionally, both parties will have information and inspection rights. The transaction will be classified as a related party transaction post-incorporation and will be conducted on an arm's length basis, with valuation reports procured in accordance with applicable laws. The outer date for completing the conditions precedent is one year from the execution of the joint venture agreement.

UBS Analyst View: Buy Rating with ₹13,700 Target

Global brokerage UBS has maintained its Buy rating on Dixon Technologies following the receipt of the long-awaited Press Note 3 (PN3) approval for the Vivo joint venture, viewing it as a significant positive trigger for growth. UBS has set a target price of ₹13,700 on the stock. The brokerage expects the transaction to close within 45–60 days from the approval, paving the way for the JV to commence operations in the near term.

According to UBS, the joint venture is expected to handle around two-thirds of Vivo's approximately 32 million annual smartphone volumes, translating to roughly 1.75 million units per month. The brokerage considers this development a key catalyst for Dixon's growth trajectory, particularly for FY27–FY28. The key highlights of the UBS assessment are summarised below:

Dixon Technologies engaged with institutional investors and analysts on July 7, 2026. The interaction was conducted pursuant to Regulations 30 and 46 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that no unpublished price sensitive information was shared during this session and no presentation was made.

The meeting was held to engage with key market participants, including advisors and investors. The interaction took place through virtual mode, covering a one-on-one discussion.

Meeting Details

The following table provides the specifics of the meeting held on July 7, 2026:

The intimation was filed by Ashish Kumar, President- Chief Legal Counsel & Group Company Secretary of Dixon Technologies. The disclosure was submitted to both BSE Limited and National Stock Exchange of India Limited to ensure compliance with regulatory requirements.