- China’s leading start-up in the field of electronics, Xiaomi continued its high growth rate on the Indian market in 2018-19, where it is the largest smartphone manufacturer by volume of sales, reaching the $5 billion mark of revenue.
- According to the latest regulatory filings made by Xiaomi Technology India with the Registrar of Companies (RoC), the total revenue of the business in 2018-19 increased by 54 percent to Rs 35,426.92 crore compared to Rs 23,061.11 crore clocked in FY18.
China’s leading start-up in the field of electronics, Xiaomi continued its high growth rate on the Indian market in 2018-19, where it is the largest smartphone manufacturer by volume of sales, reaching the $5 billion mark of revenue.
According to the latest regulatory filings made by Xiaomi Technology India with the Registrar of Companies (RoC), the total revenue of the business in 2018-19 increased by 54 percent to Rs 35,426.92 crore compared to Rs 23,061.11 crore clocked in FY18.
By revenue, Xiaomi remains behind Samsung India, which clocked Rs 43,087.9 crore mobile phone sales in FY19 as per RoC data. On a consolidated basis, after China’s BBK Electronics group that owns brands such as Oppo, Vivo, Realme and OnePlus, Xiaomi is India’s third-largest smartphone manufacturer by revenue. In FY19, sales of Rs 38,726 crore produced by the four brands together were reported by the BBK Electronics group.
Xiaomi India, however, plummeted into last fiscal losses attributed by analysts to a price war on smartphones and smart televisions where it had forayed last year and to the expansion of the company into brick-and-mortar stores involving higher discount expenditure on the distribution network and lower margin, unlike e-commerce which was the company’s mainstay till FY18.
According to RoC results, Xiaomi India posted a net loss in 2018-19 of Rs 148.48 crore compared to a net profit in FY18 of Rs 301.62 crore. In its RoC filings, the company said the net loss was due to “increasing overhead spending and competition on the local and global market.” Xiaomi said it would make every effort in the coming years to increase revenue and retain earnings.
Mayank Sharma, Veratech Intelligence’s co-founder, who analyzed ET’s financials, said the explosive growth of Xiaomi in India shows no sign of stopping in the near future.
“In FY19, the company’s manpower expenses increased by 200 percent, indicating that the company is in the long run and plans to continue.
As per the International Data Corporation (IDC) market tracker, Xiaomi continues to be India’s largest smartphone manufacturer by shipping volumes with a 27.1 percent share as of September 2019, declining marginally from 27.3 percent in the year-ago period.
Samsung is on the second slot by shipment volumes with an 18.9% share in September, led by Vivo at 15.2%, Realme at 14.3% and Oppo at 11.8% as per IDC. During the time of four out of five models sold in e-commerce, Xiaomi continues to lead on the digital platform with a market share of 40%, as per the researcher.
“We have also scaled up our after-sales network to over 2500 service centers ensuring maximum support for all products. These are all one-time investments to support the next few years to come,” he said.
“It has been a significant year for us to witness the highest mobile shipments of 12.6 million units per IDC in the third quarter of the 2019 calendar, whereas during the festive season sales we witnessed a 40% year-on-year growth and infrastructure expansion leading to extensive investment,” Rao said. He said that Xiaomi currently has India’s largest exclusive retail brand network.
Rao said the company made a significant investment in supporting product categories, creating India’s largest exclusive distribution network, increasing mobile and television manufacturing along with local PCBA smartphone manufacturing.