NEW DELHI: 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 said.
The go vernment on Wednesday approved Vivo Mobile India’s application t o 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 ce nt 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 m anufacturer (OEM) of electronic devices, including smartphones, in India.
The disclosure made by Dixon on the JV has already mentioned the propos ed entity will “undertake part of VMI’s OEM orders of smartphones in India” and can also engage i n the OEM business of electronic products of other brands.