Xiaomi lines up $500 million for Indian investment
Fri 31 Mar 2017
Chinese smartphone company Xiaomi has announced plans to channel $500 million into its Indian operations over the course of 2017, in an effort to reclaim lost ground in market share in the country.co-founder Lei Jun explained that after an initially positive reception the brand wants to bolster its presence in the country.
Co-founder Lei Jun explained in a recent interview that after an initially positive reception the brand wants to bolster its presence in the country. ‘As Xiaomi has started doing business in the country about two years back and has invested $500 million in these years. Xiaomi will invest another $500 million to expand its business in India over the next three to five years,’ he said.
Jun added: ‘We faced many challenges. Many negative reports about us. But it was never as bad as it was made out to be. We have gone back to healthy growth. We will resume rapid growth in the next two years.’
Xiaomi is currently the second largest mobile phone manufacturer in India in terms of sales, generating $1 billion in revenue in 2016. The company is hoping to double this revenue over 2017 to $2 billion by launching new innovative strategies and taking ‘controlled risks.’
The Chinese tech giant has already invested in its Indian expansion, recently opening the doors of its second Indian manufacturing plant to keep up with increasing demand. Making the announcement on Twitter, Manu Jain, VP and Managing Director of Xiaomi India said that 95% of the company’s smartphones sold in India are currently produced within the country. With the new capacity, he added that Xiaomi is able to manufacture a smartphone every second during operational hours.
Xiaomi also officially expanded into Pakistan in February, following allegations by the Pakistan Telecomm Authority (PTA) that the company had failed to seek approval for selling smartphones in the country – making the sales illegal.