Summary:
Dixon Technologies shares rose more than 5% on June 17 amid reports that the government may soon approve its proposed joint venture with Vivo. The partnership, announced in December 2024, would see Dixon hold a 51% stake and manufacture smartphones and other electronic products in India. The proposed venture is expected to include Vivo's Noida manufacturing facility, strengthening Dixon's contract manufacturing business and expanding its production scale. Despite the recent rally, Dixon Technologies shares remain down 11% over the past year.
Stocks of Dixon Technologies surged more than 5% on June 17 after reports indicated that there were chances for the government to give a go-ahead to the long-delayed joint venture deal between the firm and the Chinese smartphone manufacturer Vivo during the current month.
The share price started the session by rising to ₹12,325 on the NSE before reaching an intraday high point of ₹12,859. As per the data available at around 10:34 AM, the stock was being traded at ₹12,815 levels, registering a rise of ₹580 or 4.74%. The rise took the stock price into the fourth day of its winning streak. The stock turned out to be the best-performing stock on the Nifty Midcap 50 index that was moving higher by 0.35%.
Government Approval Expected This Month
As per the media reports that have quoted their sources aware of the development, the inter-ministerial committee has given the in-principle nod for the proposed collaboration between Dixon and Vivo. The formal clearance will come from the Ministry of Electronics and Information Technology (MeitY) after completing all the procedural formalities.
The joint venture agreement was signed by both Dixon and Vivo in December 2024. According to the agreement, Dixon will own the majority 51% share, enabling them to manage the joint venture business. The joint venture aims to manufacture smartphones and other electronic gadgets in India.
Vivo's Noida Facility Likely to Be Part of JV
One important element about this transaction is that the manufacturing facility of Vivo in Noida would be incorporated into this venture. The manufacturing facility in Noida would be responsible for meeting some OEM requirements of Vivo for the sale of smartphones in India. This factory would also produce some electronic products of other brands, thus creating a bigger OEM production unit.
This transaction is also likely to help minimize any kind of risks that Vivo could encounter in India, and at the same time keep up the firm's presence in the country.
Strong Manufacturing Scale of Both Partners
Vivo remains one of the dominant players in the Indian smartphone market and is estimated to have sold around 3.5 crore handsets in 2025. In comparison, Dixon's mobile phone production volume stood at approximately 3.2 crore units during the same period.
The scale of the partnership is evident from Dixon's financial performance. The company reported total revenue of ₹48,873 crore in FY26, with its mobile phone and contract manufacturing business contributing ₹44,257 crore, highlighting the segment's significance to overall operations.
Dixon Technologies Stock Performance
Despite the recent rally, Dixon Technologies has underperformed benchmark indices over the last year. The stock has declined 11% during the period, compared with a 3.2% fall in the Nifty 50. The stock is trading above its key short-term and long-term moving averages on both daily and weekly charts.
