Three of the largest Chinese electronics companies in India<\/a> - Xiaomi<\/a>, Lenovo<\/a> and Vivo<\/a> Mobiles - have emerged largely unscathed from widespread anti-China rhetoric and government actions against Chinese businesses since the 2020 border clashes between the two countries.
Computer maker Lenovo increased its sales in India year-on-year in 2020-21 while smartphone makers Xiaomi and Vivo reported marginal fall in sales, according to latest regulatory disclosures they made to the Registrar of Companies (RoC), accessed through business intelligence platform Tofler.
In fact, Lenovo grew its business despite not receiving a clearance from the Department for Promotion of Industry and Internal Trade (DPIIT) to directly participate in government tenders, as it said in its RoC filings.
While Xiaomi and Vivo did not cite reason for sales decline in their RoC filings, industry executives attributed it to the first stricter Covid-19 lockdown in 2020 and shortage of components impacting product supplies.
Market researcher IDC India research director Navkendar Singh said the India-China clashes and sentiments in 2020 had no impact on the sales of Chinese smartphone and laptop brands.
\"If some companies have lost sales, it is due to supply issues and lockdown,\" he said.
Emails sent to Xiaomi, Vivo and Lenovo remained unanswered till Wednesday press time.
As per RoC filings, Xiaomi Technology India - the country's largest smartphone maker - reported 6% decline in revenue from operations at Rs 35,504 crore for the year ended March 2021, while Vivo Mobile India<\/a> posted 1% drop in revenue at ₹24,724 crore. Another leading Chinese smartphone player, Oppo Mobiles has yet to file its FY21 financials.
Xiaomi in the filings said, \"All efforts shall continue to be made to increase the revenue and retained earnings in the upcoming years.\"
Vivo, too, said in the filings that it will \"maximise capacity utilisation with least cost to achieve higher revenue and improve profitability\".
Three of the largest Chinese electronics companies in India<\/a> - Xiaomi<\/a>, Lenovo<\/a> and Vivo<\/a> Mobiles - have emerged largely unscathed from widespread anti-China rhetoric and government actions against Chinese businesses since the 2020 border clashes between the two countries.
Computer maker Lenovo increased its sales in India year-on-year in 2020-21 while smartphone makers Xiaomi and Vivo reported marginal fall in sales, according to latest regulatory disclosures they made to the Registrar of Companies (RoC), accessed through business intelligence platform Tofler.
In fact, Lenovo grew its business despite not receiving a clearance from the Department for Promotion of Industry and Internal Trade (DPIIT) to directly participate in government tenders, as it said in its RoC filings.
While Xiaomi and Vivo did not cite reason for sales decline in their RoC filings, industry executives attributed it to the first stricter Covid-19 lockdown in 2020 and shortage of components impacting product supplies.
Market researcher IDC India research director Navkendar Singh said the India-China clashes and sentiments in 2020 had no impact on the sales of Chinese smartphone and laptop brands.
\"If some companies have lost sales, it is due to supply issues and lockdown,\" he said.
Emails sent to Xiaomi, Vivo and Lenovo remained unanswered till Wednesday press time.
As per RoC filings, Xiaomi Technology India - the country's largest smartphone maker - reported 6% decline in revenue from operations at Rs 35,504 crore for the year ended March 2021, while Vivo Mobile India<\/a> posted 1% drop in revenue at ₹24,724 crore. Another leading Chinese smartphone player, Oppo Mobiles has yet to file its FY21 financials.
Xiaomi in the filings said, \"All efforts shall continue to be made to increase the revenue and retained earnings in the upcoming years.\"
Vivo, too, said in the filings that it will \"maximise capacity utilisation with least cost to achieve higher revenue and improve profitability\".
Lenovo India's total income went up 14% in FY21 at ₹10,389 crore.
The company, however, said it cannot participate directly in public procurement tenders since it is yet to receive the DPIIT nod.
India had revised public procurement norms in July 2020, soon after a deadly clash between Indian and Chinese forces in the Galwan Valley, whereby bidders from China<\/a> and other countries sharing land border with India need additional clearance in the form of pre-registration with the DPIIT to participate in government tenders.
Lenovo, in its RoC filings, said it had submitted an application for registration in September 2020, and satisfactorily responded to all queries received in process of the relevant government ministries reviewing the application. It said it \"awaits the clearance in due course\".
The company further said it has expanded manufacturing capacity in India by 100% in FY21 with a new line producing its entire range of products in the country.
Vivo became profitable in FY21 with net profit of ₹552 crore as compared to a net loss of ₹348 crore in FY20. However, Xiaomi's net profit declined by 31% at ₹275 crore in FY21, while Lenovo India net profit was down by 17% at Rs 59 crore.
India-China relations had strained in 2020 due to border clashes and subsequent stricter rules for Chinese companies including ban on several mobile apps by the Centre, even as social media was flooded with anti-China rhetoric.
As per market researcher IDC India, there are four Chinese players among India's top five smartphone brands - Xiaomi, Vivo, Realme and Oppo - with Korean firm Samsung being the other.
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