Vivo

Chinese mobile company Vivo plans to hive off its Noida-based manufacturing unit to its upcoming joint venture with domestic electronics manufacturing services firm Dixon Technologies and move to an asset-light business model in India, sources aware of the development told PTI. The government on Wednesday approved Vivo Mobile India's application to form a joint venture with Dixon Technologies. The approval came after about 18 months of signing a pact between the two companies. "Vivo's Noida manufacturing unit will become part of the JV and gradually the mobile company will move to an asset-light business model," a source aware of the development said. Email query sent to Vivo and Dixon in this regard did not elicit any immediate reply. Dixon Technologies will hold a 51 per cent stake in the proposed JV and Vivo Mobile India Private Limited (VMI) will hold 49 per cent stake. The JV company will carry on the business as an original equipment manufacturer (OEM) of electronic devices

Dixon Technologies today was up 4 per cent intraday as the company secured government approval to set up its joint venture (JV) with Vivo Mobile India (VMI).

Approval marks one of the first clearances under the revised Press Note 3 regime, which allows up to 10% non-controlling ownership from land-bordering countries

The proposed joint venture has already secured clearance from an inter-ministerial panel, with formal government approval expected soon to operationalise the partnership

Dixon Technologies expects export growth, speciality EMS expansion and the proposed Vivo joint venture to support earnings amid margin pressures and weak demand

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