Hotline: 1800 102 2007
X
Search Business Opportunities
May, 31 2018

Xiaomi plans Diwali show with made-in-India TVs

The biggest seller of smartphones in India will initially assemble the TV sets while it builds a local component sourcing base.

Chinese electronics giant Xiaomi is planning a manufacturing tie-up with Taiwanese contract manufacturer Foxconn for Indian production of television sets in next quarter instead of importing them as it plans to dominate online sales in the upcoming festive season, three senior industry executives said.

The biggest seller of smartphones in India will initially assemble the TV sets while it builds a local component sourcing base. Making the TV sets in India will provide tax benefits, although industry executives said Xiaomi is unlikely to reduce television prices because it already sells them at wafer thin or no margins.

“Xiaomi’s talks are in advanced stages with Foxconn for manufacturing televisions in India, which will start from July-August so that in the festive season-Diwali sales it has mostly made in-India models,” said an industry executive aware of the plans.

“Xiaomi’s target is to become the largest online television brand before it expands into multi-brand stores. Local manufacturing will not only provide some relief in taxes, which will boost its margins, but it will also help them to control the supply chain and ensure more availability of televisions,” the executive said.

Xiaomi is open to setting up manufacturing of televisions in India, hopefully in 2018, and it continues to evaluate the opportunity as mentioned by CEO Lei Jun in April, a Xiaomi India spokesperson said in response to an email.

Jun announced last month it will make televisions some time in 2018 and wants to disrupt the market the way Reliance Jio Infocomm ruffled the telecom segment. He also said that the government needs to reduce taxes on television to lower prices.

Xiaomi India increased the price of its 55-inch smart TV by Rs 5,000 to Rs 44,999 last month due to import tax changes and depreciation of the rupee. India increased import duty on completely built television sets to 20% from 15% over the past five months. While the tax on finished LED TV panels imported for local assembly is 15%, the import duty is 5% on open cell TV panels, which require further assembling before being used for television production.

Sony has started manufacturing televisions in India with Foxconn and plans to scale it up due to higher taxes. Other online-exclusive and focussed television brands want to start local production to save on taxes and control the supply chain.

Foxconn is the largest manufacturer of Xiaomi smartphones in India. Xiaomi has six third-party plants in the country that assemble its smartphones and it has announced a printed circuit board assembly unit in partnership with Foxconn at its Tamil Nadu facility. Currently, 95% of Xiaomi smartphones sold in India are manufactured locally.

Comment
Related opportunities
  • Courier & Delivery
    About Us: Arogya Herbs was established in 2013 with a thought..
    Locations looking for expansion Madhya Pradesh
    Establishment year 2013
    Franchising Launch Date 2013
    Investment size Rs. 2lac - 5lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Indore Madhya Pradesh
  • About Us: Chaat Ok Please is brought to you by Black..
    Locations looking for expansion Maharashtra
    Establishment year 2015
    Franchising Launch Date 2015
    Investment size Rs. 5lac - 10lac
    Space required 50
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Mumbai City Maharashtra
  • Real Estate
    About Us: Co-offiz is an office for all young professionals, start-ups,..
    Locations looking for expansion Delhi
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 20lac - 30lac
    Space required 3000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Bakery & Confectionary
    About: Started in 2003 Kabhi B Bakery + Patisserie the retail..
    Locations looking for expansion Gujarat
    Establishment year 1996
    Franchising Launch Date 2017
    Investment size Rs. 10lac - 20lac
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Ahmedabad Gujarat
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities