Vivo India and Dixon Technologies have formed a new joint venture to produce smartphones and other electronic gadgets under the Original Equipment Manufacturer (OEM) business model. In India’s expanding smartphone industry, the partnership is a major step toward enhancing domestic manufacturing capabilities.
In accordance with the deal, Vivo India would control the remaining 49% of the joint venture, while Dixon will own 51%. Both businesses will continue to operate independently of one another, notwithstanding their cooperation.
A percentage of Vivo’s OEM smartphone orders in India will be handled by the joint venture. It also intends to broaden its portfolio by producing OEM goods for other brands. The venture is still pending governmental clearances and the completion of final contracts, though.
Speaking about the partnership, Atul B. Lall, Vice Chairman and Managing Director of Dixon Technologies, said, “It gives us immense pleasure to partner with Vivo India, which is an iconic global brand. We see them as an ideal strategic partner that shares our core values of quality, engineering prowess, and customer satisfaction. This association will bolster our manufacturing excellence and Vivo’s leadership in the Indian business ecosystem.”
The collaboration, he continued, supports Dixon’s objective of solidifying its place in the Android smartphone market in India. “There is immense potential to further build on shared capabilities to deliver sustainable growth for the proposed venture,” Lall said.
Jerome Chen, CEO of Vivo India, also emphasized the two businesses’ synergies.“We are delighted to sign a term sheet with Dixon, which boasts rich local management experience and outstanding professional manufacturing prowess.”
Chen stated that the collaboration will increase Vivo’s production capacity in India and support its current manufacturing activities.“The proposed joint venture will undertake part of Vivo’s OEM orders for smartphones in India and can also engage in OEM business of various electronic products of other brands,” Chen added.
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