Xiaomi had been facing friction in its operations in India, after facing allegations of tax evasion by the Enforcement Directorate (ED), Income Tax Department and the Customs Department. Following all of this, a new rumor had suggested that the company is moving its operations from India to Pakistan. However, it appears that this rumor is false.

For those unaware, the Indian government had seized the Chinese tech giant’s assets that were valued around 5,551 crore INR. The government cited illegal remittances to three foreign based entities, which allegedly also included one Xiaomi group entity that was “in the guise of royalty.” The company has denied these accusations in the Indian high court. However, a day after this court order, a rumor surfaced regarding the brand shifting its operations from Pakistan to India.

But now, Xiaomi India has officially denied this rumor, stating that the news is “completely false & baseless.” The brand further added that “Xiaomi entered India in 2014 & in less than a year, we embarked on our Make in India journey. 99 percent of our smartphones & 100 percent of our TVs are made in India. We’ll take all measures to protect our reputation from false & inaccurate claims.”

This statement was shared on its official Indian unit’s Twitter handle. Since the seizure of assets worth over 5,551 crore INR, the company has claimed that this move has “effectively halted” its operations in the second largest smartphone market in the world. Furthermore, the Karnatake High Court has also declined to provide any relief on the seizure until the investigation is over.

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The post Xiaomi denies rumors of moving operations from India to Pakistan appeared first on Gizmochina.

A material disclosure statement presented at the Pakistan Stock Exchange has indicated that Chinese tech powerhouse Xiaomi will begin production of smartphones in Pakistan from January 2022. Xiaomi is targeting the manufacture of up to 3 million smartphones annually in its Pakistan production facility. Expected revenue from Xiaomi’s Pakistan operations is in the region of $450 million.

The key details were filed this week to the Pakistan Stock Exchange by Xiaomi’s local partner, Air Link Communication Limited. The production arrangement is between Xiaomi and Select Technologies (Pvt) Limited, a subsidiary of Air Link Communication Limited. Select Technologies will serve as the manufacturing partner for Xiaomi in Pakistan, with a focus on the production of mobile phones. Select Technologies will be tasked with the manufacture of mobile devices of certain brands. It is possible that Xiaomi may not ultimately be the only brand that will be manufactured by Select Technologies.

The parent company, Air Link Communication Limited, says that the new investment that aims at an annual production target of between 2.5 million to 3 million units will have a material incremental impact on the financial outlook of the company. Revenue projection for the new manufacturing of Xiaomi smartphones is projected at $450 million annually. The production facility is sited close to Air Link’s mobile phone manufacturing complex in Lahore. Air Link will continue to hold a large chunk of the distribution chain of Xiaomi smartphones in Pakistan, and its new production facility will further entrench its position in the market.

Xiaomi continues to expand its operations outside of China as it feels the void left behind by Huawei. Xiaomi has had some impressive numbers globally as a leader in the smartphone segment. Data from several sources point to the fact that Xiaomi is currently the world’s top-selling smartphone brand, outclassing both Apple and Samsung. The expansion of Xiaomi’s Pakistan operations will add to the growing profile of the Chinese company.

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