New Delhi: In a main booster for India’s efforts to localize Chinese investments in India, smartphone large Vivo has determined to form a three way partnership with home Dixon Technologies for contract manufacturing its units and different electronics merchandise. Dixon will maintain 51% stake in the JV, whereas the remaining might be with Vivo India.
Dixon and Vivo India mentioned entered into a Binding Term Sheet for the proposed JV to undertake OEM enterprise of digital units, together with smartphones. However, neither Dixon nor Vivo India can have any stake in one another.
“The facility will undertake part of Vivo’s OEM orders of smartphones in India, and can also engage in OEM business of various electronic products of other brands,” Dixon mentioned, emphasizing that the deal won’t have any affect on its contract manufacturing enterprise for different manufacturers akin to Motorola and Nokia.
“The parties will agree on an optimum structure and the relevant terms and conditions to be set out in the definitive agreements. The transaction will be subject to execution of such definitive agreements, completion of customary conditions precedent and receipt of applicable regulatory approvals including as required under the foreign exchange control laws of India,” the corporate mentioned.
Tata group was additionally believed to be taking a look at a deal with Vivo India, nevertheless it couldn’t materialize.
Dixon Vice Chairman and MD Atul B Lall mentioned the corporate sees Vivo India as an “ideal strategic partner” that shares its core values of high quality, engineering prowess and buyer satisfaction. “We believe that this association will bolster our manufacturing excellence and superior execution abilities and Vivo’s leadership in the Indian business ecosystem. We are excited to work together to create a stronger, more diversified, and future-proof organization. ,
Jerome Chen, CEO of Vivo India said the deal with Dixon gets “rich localized management experience and outstanding professional manufacturing” prowess. “The proposed JV will undertake part of Vivo’s OEM orders of smartphones in India, and can also engage in OEM business of various electronic products of other brands. This partnership will effectively complement the current manufacturing operations of Vivo India,” Chen mentioned.
