Dixon Technologies (India) Limited has executed a joint venture agreement (JVA) with vivo Mobile India Private Limited (VMI) to incorporate a joint venture company (JV Co.) in India. This JV Co. will undertake the original equipment manufacturer (OEM) business for electronic devices, including smartphones. The JV Co. will be incorporated in India, and the share capital will be held in the proportion of 51% by Dixon Technologies and 49% by VMI. Neither company will have a stake in the other. The JVA also includes a shareholders' agreement to govern the relationship between the shareholders and the management of the JV Co. VMI has received approval from the Government of India, as per Press Note 3 of 2020, for the incorporation of the JV Co. and VMI's subscription of shares. The initial paid-up share capital of the JV Co. is planned to be ₹5 crore, contributed by Dixon Technologies and VMI in their respective shareholding proportions. The JV Co. will undertake part of VMI's OEM orders for smartphones in India and may also engage in OEM business for other brands' electronic products. This association is expected to bolster Dixon's manufacturing excellence and execution abilities, strengthening its foothold in the android smartphone ecosystem in India. The outer limit for the completion of conditions precedent for the transaction is one year from the execution of the JVA, or as mutually agreed upon in writing by both parties. The transaction is subject to the satisfactory completion of conditions precedent outlined in the JVA and any applicable statutory and regulatory approvals. Dixon Technologies and VMI will each have the right to nominate two directors to the board of the JV Co.
