August 6, 2018
Xiaomi’s investment in India will cover activities across internet services, startup investments as well as India-specific research and development (R&D)
The investments will help Xiaomi further increase its market share by cracking into the premium smartphone bracket, which it has largely avoided so far
Apart from smartphones, Xiaomi has expanded into mobile accessories, ecosystem products and smart televisions as well as apps and financial services
India now ranks second, globally, in the manufacture of mobile phones, with the number of factories rising from just 2, to 120, in about four years’ time
Xiaomi, a Chinese smartphone manufacturer, is looking to considerably increase its investment in India, combining activities across internet services, startup investments as well as India-specific research and development (R&D). The company, which went public on the Hong Kong Stock Exchange last month, plans to invest around 30 per cent of the US$4.5 billion it raised from the IPO in main R&D operations, according to a report on August 6 by The Economic Times, citing Xiaomi’s India head, Manu Kumar Jain. The company will invest 30 per cent on building its connected devices platform using Internet of Things (IoT), 30 per cent on global expansion, and the rest 10 per cent on other operational activities.
The company is currently India’s second largest smartphone brand and controls around 30 per cent of the Indian market – one of the biggest and fastest growing in the world. The investments will help Xiaomi further increase its market share by cracking into the premium smartphone bracket, which it has largely avoided so far to focus on the mass market segment. Apart from smartphones, Xiaomi has expanded into mobile accessories, ecosystem products and smart televisions. The company has gotten into a number of internet-based services such as MiMusic, Mi Drop, MiBrowser and MiStore. Xiaomi has also introduced MiCredit in India to offer loans up to around US$1,450, besides funding up to 10 Indian startups.
The company’s competitively-priced phones have given stiff competition in the Indian market. Xiaomi hopes that an improved outreach will unlock new business opportunities in the 1.3 billion-strong market. Xiaomi’s Indian plans come as its Chinese peer OnePlus is planning to move its global servicing operations to India, besides setting up its second global headquarters in the country along with a R&D centre. Earlier in July, Samsung Electronics opened the world’s largest mobile phone manufacturing plant near Delhi with an investment of US$710 million. India now ranks second, globally, in the manufacture of mobile phones, with the number of factories rising from just 2, to 120, in about four years’ time.