BBK Electronics Corporation has carried out a strategic restructuring of its operation in India. The company has reportedly transformed three of its major brands – Oppo, OnePlus and Realme, into independent entities with their own sales accounting.
The motive behind this move is to alleviate potential risks associated with government actions targeting Chinese companies. With the establishment of separate legal entities for OnePlus and Realme, the company aims at safeguarding these brands from any adverse measures taken against Oppo Mobiles India, which handled sales and distribution for all three brands before this. The company believes that any severe action against Oppo Mobiles India could have a serious impact on the business operation of all three brands.
Oppo Mobiles India submitted regulatory filings to the Registrar of Companies (ROC) in May 2023, disclosing extensive actions taken by the government against the company. These actions included the freezing of bank accounts with funds up to Rs 20.82 billion. Furthermore, the company’s auditors expressed concerns regarding its ability to continue as a going concern, citing “maternal uncertainty”. Meanwhile, Oppo did receive letters of intent from its holding company and external commercial borrowing provider, addressing the challenges and indicating continuous financial support for ensuring operationality.
Whereas, OnePlus and Realme are looking for partnerships with Indian contract manufacturers in response to government requests. OnePlus Technology India has started signing billing,sales and distribution agreement with retail chains and their distributors early this month, with Realme Mobile Telecommunications initiating the process earlier.
