BBK Electronics Corp, China’s top smartphone manufacturer, has separated three of its major brands in India – Oppo, OnePlus, and Realme – into independent organizations, with revenues accounted for in their accounts, as it strives to mitigate the possibility of future government action against Chinese firms.

According to three senior industry officials, China’s biggest smartphone maker, BBK Electronics Corp, has reorganized its India operations by creating three of its key brands – Oppo, OnePlus, and Realme – separate businesses with revenues accounted for in their accounts.

BBK has entrusted OnePlus and Realme sales and distribution to their respective legal organizations, OnePlus Technology India and Realme Mobile Telecommunications (India). Oppo Mobiles India, which previously handled sales and distribution for all three brands, will continue to sell its brand, officials added.

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BBK is cautious that the way the government is taking action against Chinese companies, any severe and further action against Oppo Mobiles India will impact the business of three large brands,” one of them said. “Hence, it wants to separate the three businesses.”

Oppo Mobiles India disclosed substantial government proceedings against the firm in its latest regulatory filings to the Registrar of Companies (RoC) in May, including money frozen in bank accounts totaling Rs 2,082 crore. 

According to the company’s RoC filing, its auditors have cautioned that “material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern.” Oppo Mobiles was previously under investigation by the government for suspected customs tax evasion of Rs 4,388 crore.

Oppo Mobiles India also said in the papers that it has obtained letters of intent from its parent company and its external commercial borrowing source to continue financing the firm for it to stay active. These RoC filings were issued in conjunction with the company’s 2021-22 financial report. 

The firm has made no more RoC filings, including FY23 financial and auditor reports. According to executives, Oppo Mobiles India is also revamping its business model. It will now sell straight to major retailers and distributors, while the latter will sell to small stores. It conducted such a trial in Delhi.

Previously, Oppo Mobiles sold through businesses (known as agents in the industry) owned and controlled by Chinese in numerous states, who then sold to retailers. All three smartphone brands will continue to be manufactured by Oppo Mobiles. According to the executives, OnePlus and Realme are trying to engage with Indian contract smartphone manufacturers in response to government requirements. 

This month, OnePlus Technology India began signing billing, sales, and distribution agreements with significant retail chains and their distributors, while Realme Mobile Telecommunications did so earlier. As of Monday’s publication time, emails addressed to Oppo Mobiles India, OnePlus Technology, and Realme Mobile have gone unanswered.

BBK also owns the Vivo and iQoo smartphone brands, which are managed by a separate company called Vivo Mobile India. Vivo has its plant in India.