BBK Splits, Xiaomi Consolidates: Strategies for Surviving India's Regulatory Storm

Recently, social media was aflutter with news about OnePlus shutting down its India operations so much so that the CEO Robin Liu had to issue an official statement to the contrary. So, what is happening in the Indian mobile phone industry, why are some companies going through a restructuring and how to avoid these potholes? Let’s do a deep dive.

Main players of the mobile phone market in India:

India currently has around 659 million smartphone users (approx. 47% of the population) and is expected to hit 1 billion by 2030. According to analysts, Chinese brands have captured roughly 75% of the market with Samsung giving a tough fight at every price point. Apple dominates the premium segment by value. Three Chinese conglomerates dominate the budget phone segment market.

1. BBK Electronics, with brands Oppo, OnePlus, Realme, Vivo, IQOO

2. Xiaomi, with brands Xiaomi, Redmi, Poco and

3. Transsion Holdings Group, with brands Tecno, Infinix, Itel.

Corporate structure of the big players:

Initially, BBK Electronics adopted a centralised multi brand model. Parent company BBK Electronics Corp (China) with OPPO India handling Oppo, Realme, One Plus and Vivo Mobile India handling Vivo and IQOO. Post 2023, four separate legal entities were created - Oppo, Vivo (includes IQOO), OnePlus and Realme. Xiaomi, on the other hand, has one legal Indian entity, Xiaomi Technology India Pvt Ltd and 120 subsidiaries in India, with parent company Xiaomi Corporation, China.

Legal Troubles and Corporate Restructuring:

BBK Holdings: In 2022, DRI investigated OPPO India for customs duty evasion of Rs 4389 crores. Rs 2082 crores were blocked in frozen bank accounts, affecting the going concern ability of the entity. To safeguard the distribution pipeline of OnePlus and Realme, four different legal entities were created. This ensured that cash flows became separate and protected from “recovery” or “freeze”.

Xiaomi: In 2022, Xiaomi also faced regulatory scrutiny for FEMA violations to the extent of Rs 5551 crores for unauthorised foreign remittances. Xiaomi has taken the legal route to defend its position. Loss of market share and “contingent liability” disclosure - the silent price of ongoing litigation.

Transsion Holdings Group, Samsung India are also facing heat from the DRI for customs evasion. Apple is the exception with no customs or FEMA breaches.

My Take: The presence of untapped markets coupled with a tech savvy young demographic who replace their phones every 30 months (avg) - the market potential is huge. Market leaders are often subjected to regulatory scrutiny. Regulatory compliance is a very small price compared to the risk of losing shelf space or having your assets frozen. Authorities can be approached for advance rulings. With GoI actively promoting Make in India policies and PLI schemes, companies can think of entering into JVs with local OEMs to enjoy benefits of localisation. Companies can be structured in such a way that the original IP is held by the foreign company while the operations are handled by the local JV.

This article is part of An Accountant Writes, Vol 1, Issue 2 — February 2026. Read the full issue