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Government has approved the long awaited 51:49 JV between Dixon and Vivo mobile India

ICICIdirect Research 10 Jul 2026 DISCLAIMER

News: Government has approved the long awaited 51:49 JV between Dixon and Vivo mobile India under press note 3 regulations. The JV shall absorb ~67% of Vivo India's volumes, translating into an annualized production of 2 cr+ smartphones

View: The execution of the JV formalizes a key growth driver for Dixon's mobile business. Management had earlier indicated that its standalone smartphone manufacturing volumes of 3.3 crore units in FY26 are expected to remain broadly flat in FY27 excluding Vivo. With the JV approval, it is expected to add around 2.0-2.2 crore smartphone units annually at scale, the partnership provides a meaningful incremental volume opportunity while strengthening Dixon's position in the Android smartphone ecosystem. Additionally, Vivo's product portfolio carries a higher average selling price than Dixon's existing smartphone customers. Thus, the JV has potential to generate ₹30,000 cr with realisation of ₹14,000–15,000 per device. Meanwhile, the JV shall bring scale advantages and enhance effectiveness of components strategy. Dixon is backward integrating into camera modules, display modules and enclosures which is expected to increase value addition and support margin expansion.

Impact: Positive

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