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As per media reports, an inter-ministerial committee has backed the long-pending Dixon–Vivo joint venture

ICICIdirect Research 17 Jun 2026 DISCLAIMER

News: As per media reports, an inter-ministerial committee has backed the long-pending Dixon–Vivo joint venture, and is expected to process the final approval once the regulatory processes are completed. In a media interaction, Dixon CFO Saurabh Gupta also suggested the approval should come in soon. Under the proposed structure, Dixon will hold a 51% majority stake. The JV shall absorb nearly 67% of Vivo India's volumes, translating into an annualized production of 2 to 2.2 crore smartphones and a massive revenue opportunity of nearly ₹30,000 crore, once approved.

View: Once approved, the development will add significant growth factor for Dixon. For FY26, Dixon smartphones volume stood at 3.2 cr which the management has guided shall remain broadly flat ex-Vivo for FY27E. Once JV approved, the addition of 2 to 2.2 crore units annually provides a powerful growth engine that cushions the company against a weak domestic demand environment. Further, management suggested Vivo’s portfolio carries a higher average selling price compared to Dixon’s legacy smartphone clients, which shall boost revenue growth. Besides, the company is investing in backward integration including display assembly, camera assembly, enclosures, etc. At a scale, the component strategy becomes more effective, thus strengthening overall business model

Impact: Positive

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