Oppo, OnePlus And Realme Become Independent Entities In India Amid Government Concerns: Report

Chinese electronics giant BBK Electronics Corp, the parent company of smartphone brands—Oppo, OnePlus, and Realme—has decided to separate the three brands into three separate entities in an attempt to restructure its operations in India, as the fear of government action looms.

According to a report by The Economic TimesBBK Electronics is looking to “de-risk” its India business, and now, Oppo, OnePlus, and Realme will function in India as “independent entities with sales accounted for in their own books.”

The report adds that BBK is concerned about how the Indian government is taking action against Chinese companies, and hence, wants to separate the three brands in the country. Further, the Indian market, notably, plays a major role in contributing to the overall sales of the company, with 4 out of the 5 top smartphone players in India being Chinese, and two out of the top 5 being owned by BBK Electronics Corp itself.

“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,” a source was quoted as saying by The Economic Times.

Now, Oppo India, which until now was handling sales and distribution of all the three brands, will only look after its own sales. Therefore, OnePlus Technology India and Realme Mobile Telecommunications India will handle their own books, sales, and distribution.

Oppo is reportedly also looking at changing how it facilitates its operations in the Indian market with a new model that aims to”directly sell to large retailers and distributors.” The report said, “Oppo Mobiles used to sell to entities (called as agents in the industry parlance) owned and run by Chinese in several states, who would in turn sell to the retailers.”

Similarly, OnePlus and Realme are also looking at new partners to set their operations in place.