Muralikrishnan B, president of Xiaomi in India, told TOI that the company is not looking at the option of a joint venture in India even as some of its Chinese peers, such as those in the auto space like MG Motors and BYD, are eyeing the route to overcome the problems in getting more equity to support their venture.
BYD’s proposal to rope in Megha Engineering has been turned down as the government is wary of allowing companies from across the border to get a stranglehold in the Indian market when several of them are accused of indulging in unfair trade practices and having links with the communist establishment. “We will remain a 100% subsidiary of our Chinese parent,” Muralikrishnan said, putting to rest speculations that it is engaged in “active discussions” with some of the Indian contract manufacturers for a joint venture, especially as they enjoy production-linked incentives (PLI) that the government has offered to make smartphones.
Xiaomi had recently signed up Noida-based contract manufacturer Optiemus Electronics to source audio products, while it already makes televisions in the factory of Dixon Technologies. The company’s range of smartphones are being made by Foxconn and other contract manufacturers. The company, which, along with Vivo, Oppo and Lenovo, was last week named in Parliament by minister of state for IT & electronics Rajeev Chandrasekhar for allegedly dodging taxes in India, has maintained that it is a lawabiding citizen and has not engaged in any legal or statutory violations