In light of the Indian government’s recent crackdown on Chinese companies, BBK Electronics is reportedly concerned about the future of its smartphone business in India. As a result, the conglomerate is restructuring its operations in the country. BBK Electronics, a conglomerate comprising of Oppo, Vivo, Realme and OnePlus, is based in China.
According to sources familiar with the matter, a report from ET states that BBK Electronics has reorganized its operations in India. Oppo, OnePlus, and Realme are now independent entities, with their respective sales being recorded in their own books. It is reported that BBK Electronics has transferred the sales and distribution responsibilities of OnePlus and Realme to OnePlus Technology India and Realme Mobile Telecommunications India, respectively, which are now separate legal entities.
In case you are not aware, Oppo Mobiles India previously managed its sales and distribution, but now it will only handle Oppo. However, Oppo Mobiles will continue to produce smartphones for all three brands.
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“BBK is cautious that the way the government is taking action against Chinese companies, any severe and further action against Oppo Mobiles India will impact the business of three large brands. Hence, it wants to separate the three businesses”, said one of the executives.
The move will apparently “de-risk the business from the current and future government action against Chinese firms”. Lastly, the report adds that OnePlus and Realme are looking for Indian contract manufacturers, while the former has reportedly started signing billing, sales and distribution agreements with large retail chains and their distributors in India. Realme Mobile Telecommunications, on the other hand, has already begun the process.