Xiaomi — India’s largest smartphone manufacturer with its headquarters in China made its biggest investment in India so far of Rs. 35 billion.
Xiaomi’s total investment of Rs. 35 billion consists of two fusions from Xiaomi Singapore. One, from January, of ₹15 billion and another in March on Rs. 29 billion.
This is the largest investment made by Xiaomi in the four years that it’s been operating in India. Since then, not only has the company’s revenue grown steadily but so has its market share. So much so, that it overtook Samsung in 2018 with a market share of 28.9 percent, according to the International Data Corporation.
But, according to industry executives who spoke to the Economic Times, Xiaomi is looking to expand into other sectors.
This doesn’t come as surprise since Manu Kumar Jain, the CEO of Xiaomi, hinted at launching many more product categories in India as early as last year, his only concern being customizing those products for the Indian market.
Jain also hinted that Xiaomi will only foray into areas where stringent regulations wouldn’t apply. Rather than bring in products like drones, he said he would focus on more lenient sectors like electric cycles.
Since the company is also primarily reliant on online platforms for the sale of its smartphones, the investment will also be used to strengthen the company’s offline model in India by creating more stores around the country. Xiaomi currently has 26 exclusive stores and few hundred stores through its franchise partners.
India a key market for Xiaomi as the demand back home is shrinking. And diversifying into new segments would mean that Xiaomi will be able to launch products with higher margins.―Business Insider