Xiaomi is currently the leader in smartphone market in India and is looking to consolidate that position with a huge investment of Rs.3500 crore rupees.
Xiaomi Singapore Pte Ltd. owns 99.99% of the Indian entity while Xiaomi Hong Kong Ltd. owns the remaining 0.01%.
The Singapore entity of the company pumped in investments worth Rs.3500 crores in two parts. In the first part, Rs. 1499.9 crore rupees was invested on January 17. In the second part, Rs. 2000 crore rupees was pumped in on 1st March.
The first investment allowed the company to release 3,786 equity shares while the second investment made it possible for the company to release 6,959 equity shares.
The Chinese company has largely invested in the Indian market to maintain a stronghold on the electronics market. Currently the leaders in smartphone market as they had 28% market share compared to Samsung’s 24% market share. Vivo and Oppo have 10% and 8% market share respectively.
While the company hasn’t announced anything, it is reported that the money invested will be used to explore the white goods market.
Xiaomi is looking to explore the white goods market after becoming the leaders in the smartphone market. They are targeting washing machines, laptops, water purifiers and refrigerators etc.
After opening more than 500 MI stores in villages across India, the company is aiming to have more than 5000 MI stores in the country by the end of this year. The company is also aiming at generating more than 15,000 jobs by the means of these stores.
After making a name for themselves in the budget smartphone category in India, Xiaomi successfully launched several phones in the 20-30K bracket. Now, they are looking to launch a fold-able phone costing Rs. 75,000 by June this year.
As of now, Xiaomi doesn’t own any manufacturing unit in the country and none of this investment is supposed to be used for a manufacturing unit with Xiaomi continuing the manufacturing in their parent country, China.