India Clears Landmark Dixon-Vivo Joint Venture for Domestic Smartphone Manufacturing
In a significant regulatory breakthrough, the Indian government has formally approved a joint venture between homegrown electronics giant Dixon Technologies and Chinese smartphone manufacturer Vivo Mobile. Granted by the Department for Promotion of Industry and Internal Trade (DPIIT), the clearance resolves a proposal that had been pending under the stringent guidelines of Press Note 3 of 2020.
Following the sign-off, both companies executed a final joint venture and shareholders’ agreement to officially establish the co-owned manufacturing entity.
Indian-Controlled Corporate Structure
Under the terms of the deal, the newly formed venture will operate as a subsidiary of Dixon, which will hold a 51% majority controlling stake. Vivo Mobile India will retain the remaining 49% share. Neither corporate entity will hold an equity stake in the other outside this joint venture.
The transaction is highly significant because it navigates Press Note 3 rules, which mandate prior government scrutiny for any incoming investments...
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