New Delhi: In a major boost to India’s efforts to localize Chinese investment in India, the smartphone company Vivo Decided to make one. A joint venture With domestic Dixon Technologies for Contract manufacturing Its appliances and other electronics products. Dixon will hold a 51% stake in the JV, while Vivo India will hold the rest.
Dixon and Vivo India said a binding term sheet has been entered into for the proposed JV to start OEM business of electronic devices including smartphones. However, neither Dixon nor Vivo India will have any stake in each other.
“This facility will form part of Vivo’s OEM orders for smartphones in India, and may also engage in OEM business of various electronic products from other brands,” Dixon said, stressing that the deal is for other There will be no impact on its contract manufacturing business. Brands like Motorola and Nokia.
“The parties will agree to an optimal structure and related terms and conditions that will be set forth in definitive agreements. The transaction will be subject to the execution of definitive agreements, satisfaction of customary conditions precedent and receipt of applicable regulatory approvals.” As required under India’s foreign exchange control laws,” the company said.
The Tata Group was also believed to be mulling a deal with Vivo India, but it did not materialise.
Atul B Lal, vice chairman and MD of Dixon, said the company sees Vivo India as an “ideal strategic partner” that shares its core values of quality, engineering prowess and customer satisfaction. “We believe this association will strengthen our manufacturing excellence and high-performance capabilities and Vivo’s leadership in the Indian business ecosystem. We look forward to working together to create a stronger, more diverse, and future-proof organization.” Excited for.”
Jerome Chen, CEO of Vivo India, said the deal with Dixon brings “localized management experience and excellent professional manufacturing” potential. “The proposed JV will form part of Vivo’s OEM orders of smartphones in India, and also engage in OEM business of various electronic products of other brands. The partnership will effectively complement Vivo India’s existing manufacturing operations, ” said Chen.