Shares of Dixon Technologies jumped by 5% to touch a day’s high of ₹18,321.15 on the BSE, while on the NSE, the stock rose 3.99%, trading at ₹18,670.45, marking a gain of ₹716.05 in early trade. The surge followed the announcement of a strategic joint venture with Chinese smartphone maker Vivo to manufacture smartphones for Vivo and potentially other brands. The stock also hit its 52-week high at ₹18,830 during the session.
In an exchange filing on Sunday, Dixon Technologies revealed it would hold a 51% majority stake in the joint venture, while Vivo India will own 49%. Importantly, the agreement clarifies that neither Dixon nor Vivo India will hold equity in each other.
This partnership aligns with the Indian government’s push for Chinese smartphone brands to integrate Indian equity partners into their operations and appoint Indian executives in key roles. The move comes in the wake of scrutiny over alleged tax evasion, non-compliance with Indian laws, and foreign exchange violations by Chinese mobile companies.
The collaboration strengthens Dixon is at already dominant position in the Android smartphone manufacturing ecosystem. Dixon currently produces devices for leading global brands like Samsung, Xiaomi, Motorola, Oppo, Transsion, Google, and Nothing. With this partnership, Dixon will add Vivo to its extensive portfolio while retaining the flexibility to manufacture for other brands under the joint venture.
Vivo, which recently marked a decade of operations in India, has been expanding its manufacturing capabilities. The company invested ₹3,000 crore to establish a new 170-acre manufacturing facility in Greater Noida with an annual production capacity of 120 million smartphones. This expansion came after Vivo vacated its older facility (40 million units annual capacity), now taken over by Bhagwati Products, the makers of Micromax.
The joint venture will enable Vivo to capitalize on India’s Make in India initiative, enhancing competitiveness in the local market. However, it remains unclear if the agreement will include exporting smartphones manufactured in India.
This is Dixon’s second partnership with a Chinese mobile phone company this year. Earlier, the company acquired a 50.10% majority stake in Ismartu India, Transsion Holdings’ manufacturing unit, for ₹238.36 crore in cash, further solidifying Dixon’s role as a leading player in smartphone manufacturing.
