India clears Dixon-Vivo JV for domestic smartphone manufacturing

July 9 (Reuters) – Dixon Technologies 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)