BBK Electronics, China’s largest smartphone manufacturer, has revised its India operations for three significant brands: Oppo, OnePlus, and Realme. These brands now function as independent entities and manage their own sales, a strategy intended to protect them from any potential governmental action against Chinese firms.
What Happened? Previously, Oppo Mobiles India oversaw sales and distribution for all three brands. Now, OnePlus and Realme handle their sales and distribution through their respective legal entities, OnePlus Technology India and Realme Mobile Telecommunications (India). Oppo Mobiles India, however, will continue to sell its own brand.
Per an ET report, this restructuring emerges out of caution as the government intensifies its action against Chinese companies. Specifically, BBK aims to prevent any serious governmental action against Oppo Mobiles India from affecting the three brands.
Oppo Mobiles India’s recent regulatory filings with the Registrar of Companies (RoC) reveal a series of government actions against it, including frozen bank accounts amounting to ₹2,082 crore.
The company’s auditors warned of a material uncertainty that could threaten the company’s ongoing viability. The government has also scrutinized Oppo Mobiles for alleged custom duty evasion amounting to ₹4,388 crore.
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Despite these challenges, Oppo Mobiles India has confirmed its operational continuity with letters of intent from its holding company and external commercial borrowing provider.
Oppo Mobiles India is also modifying its business operations, selling directly to large retailers and distributors. This contrasts with their previous approach of selling to Chinese-owned entities in different states.
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