Now Reading: Dixon-Vivo JV to close in 2 months, revenues from Q3
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Dixon-Vivo JV to close in 2 months, revenues from Q3
Dixon Technologies expects to complete its joint venture transaction with Chinese smartphone maker Vivo in the next two months, with revenue contributions starting from the October-December quarter, CEO Atul Lall said. The…
The Story in Brief
Dixon Technologies expects to complete its joint venture transaction with Chinese smartphone maker Vivo in the next two months, with revenue contributions starting from the October-December quarter, CEO Atul Lall said. The government cleared the JV proposal in the second week of July. The partnership aims to reduce risk exposure for Vivo, which has faced Enforcement Directorate action in India. Dixon posted a 3% decline in profit after tax to Rs 273 crore in the first quarter due to expiry of the mobile PLI scheme and higher input costs. The company sold about 3.2 crore handsets in 2025 versus Vivo's estimated 3.5 crore.
The Indian Opinion
The Dixon-Vivo joint venture is a calibrated move to navigate regulatory headwinds while keeping manufacturing in Indian hands. Critics who cry 'Chinese takeover' miss the point: Dixon operates the factory, Vivo provides the brand and technology. The government's approval signals a pragmatic approach to China-linked investments under strict conditions. Watch for how other Chinese smartphone makers respond if this model proves successful. The real test will be whether local component sourcing targets are met within the agreed timeline.
Source: retail.economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
