comscore Xiaomi buys 65 million shares in TCL Group, after announcing strategic partnership | BGR India

Xiaomi buys 65 million shares in TCL Group, after announcing strategic partnership

Xiaomi and TCL are seen to complement each other with expertise in product development and exposure to home appliances segment.

  • Published: January 7, 2019 11:23 AM IST
Xiaomi. (File Photo: IANS)

Xiaomi. (File Photo: IANS)

TCL Group has officially confirmed investment from Xiaomi Group, the parent company of the Chinese smartphone maker. As per the official announcement, Xiaomi Group purchased a total of 65,165,803 shares of TCL Group through the Shenzhen Stock Exchange’s secondary market on January 4, 2019. The investment gives Xiaomi Group a 0.48 percent equity in the total share capital of TCL Group. TCL also said that the investment will allow for a deeper cooperation between Xiaomi and TCL and build a strategic partnership between the two companies. The disclosure of investment comes just days after the two companies announced a strategic cooperation.

On December 29, 2018, TCL Group announced that it has signed a strategic agreement for cooperation with Xiaomi Group. Both the companies said that the strategic partnership will allow them to jointly develop smart products and electronic devices and apply the new device and technology in next-generation intelligent hardware. The companies also said that they plan to establish cooperation and joint investment in the core, high-end and fundamental technology field. The investment reiterates that commitment and TCL said that it shows Xiaomi’s belief in the strategic value of the company.

For Xiaomi, which started as a budget smartphone maker, 2018 was a monumental year where the company saw revenues from home appliance business reach a new high. In a way to step up its business, the company has expanded its smart TV portfolio and has recently stepped into product segments such as air conditioner and washing machines as well. TCL, a company that has been a traditional home appliance maker, can help the Chinese smartphone maker expand its portfolio. TCL has also recently announced that it will strategically adjust and shift focus to semiconductor display, material and other business verticals.

Watch: OnePlus 6T – Warp Charge vs Dash Charge Compared

Xiaomi and TCL can complement each other by providing valuable research and development capabilities and insights into products and supply chain management. According to IDC, Xiaomi became the no. 1 smart TV brand in China and it also surpassed Samsung to become the leader in India during the third quarter of 2018. The strategic partnership will strengthen the company to further expand its product range and enter into home appliances segment.

For the latest tech news across the world, latest PC and Mobile games, tips & tricks, top-notch gadget reviews of most exciting releases follow BGR India’s Facebook, Twitter, subscribe our YouTube Channel.
  • Published Date: January 7, 2019 11:23 AM IST