Oppo, OnePlus and Realme to operate as separate entities in India as BBK plans to derisk business

The Indian smartphone market is dominated by brands such as Oppo, OnePlus, Realme, Vivo and iQoo. All these brands are owned by a single Chinese entity called BBK Electronics Corp. The Chinese company is now restructuring its operations in India. 

BBK Electronics Corp is planning to demerge Oppo, OnePlus, and Realme into separate independent entities, as reported by Economic Times on June 6. The move has come at a time when Chinese companies in India are facing increased scrutiny from the government. 

Central agencies such as the Directorate of Revenue Intelligence have accused the Chinese brands of income tax evasion, customs violations, fraud and money laundering. Last year, the Directorate of Revenue Intelligence issued a notice to Oppo India for allegedly evading Customs duty worth Rs 4,389 crore. The agency said that Oppo has avoided paying custom duty by misusing exemption benefits.

In a regulatory filing to the Registrar of Companies, Oppo reported that the authorities have frozen its bank accounts and prevented it from accessing about Rs 2,082 crore. Oppo said that this move has created a lot of doubt and insecurity about the prospects of the company.

BBK Electronics Corp might have made this move to de-risk its business in India from future government actions.

Earlier, Oppo Mobiles India was handling the distribution of OnePlus and Realme in India but now OnePlus and Realme have moved their sales and distribution to their own legal companies in India, namely OnePlus Technology India and Realme Mobile Telecommunications (India). 

Oppo is currently manufacturing smartphones for all three brands, but the report suggests that OnePlus and Realme are looking for contract manufacturers in India. 

OnePlus Technology India has begun signing billing, sales and distribution contracts with retailers and their distributors in India. Realme Mobile Telecommunications will also do the same soon.

BBK Electronics Corp also owns Vivo and iQoo brands and they are operated in India under a separate company Vivo Mobile India. 

Meanwhile, in late March, Max Jambor said via Twitter that Oppo and OnePlus will leave some European regions. Max said, “I can confirm: OPPO and OnePlus are pulling out of Europe. First to leave are Germany, UK, France and Netherlands.”

The report was later denied the report and issued joint statement. They said, “OPPO and OnePlus are committed to all the existing European markets and the UK. We had a great start in 2023 with the successful launches of several products in Europe and have a line-up of upcoming products for the rest of the year. As always, OPPO and OnePlus will continue to provide more innovative products and the best-in-class service for users moving forward.”