India clears Dixon-Vivo JV for domestic smartphone manufacturing

July 9 (Reuters) – Dixon Technologies <DIXO.NS> said on Thursday the Indian government had approved its joint venture with Chinese smartphone maker Vivo Mobile, clearing the way for the companies to set up a smartphone manufacturing company in India.

• The joint venture will be owned 51% by Dixon and 49% by Vivo Mobile India

• Large investments by Chinese companies in Indian ventures draw tougher scrutiny under domestic regulations. Such investments typically require senior-level government clearance under rules that govern investments from nations sharing a land border with India

• The venture will manufacture smartphones and other electronic devices as an original equipment manufacturer in India and will undertake Vivo’s smartphone production orders.

• The joint venture will also be able to manufacture electronic products for other brands, Dixon said.

(Reporting by Nishit Navin in Bengaluru; Editing by Tasim Zahid)