Chinese handset maker Xiaomi invests over $200M in home appliances maker Midea
Chinese smartphone manufacturer Xiaomi, which also has a good presence in India, has invested 1.26 billion yuan (over $200 million) in Midea Group, an electrical appliance manufacturer in China, for a 1.29 per cent stake in the firm.
The deal will allow both companies to cooperate in smart home initiatives and electronic products. As per the deal, Xiaomi will start selling an air purifier, which will be able to connect to wireless networks and be remotely controlled by smartphones allowing users to monitor the air quality in real time, the company said in a press release.
Established in 1968, Midea is a manufacturer of consumer appliances and air conditioning systems. It has operations in Vietnam, Belarus, Egypt, Brazil and Argentina, besides India. The firm has over 126,000 employees across the world. Midea claims to have generated $18.7 billion in turnover in 2013.
Founded in 2010, Xiaomi is a mobile internet company with over 3,000 employees across the globe. Already one of the leading smartphone manufacturers in China, Xiaomi had made a successful debut in the Indian smartphone market in July this year with the launch of its flagship device Mi3. Following an online only flash sales model for selling its devices in the country, the company has seen its products being sold out within seconds.
In India, the company has entered into an exclusive partnership with Indian e-commerce major Flipkart.com to offer its devices. Recently, Jun Lei, co-founder and CEO of Xiaomi, said India is becoming its largest overseas market.
Recently, Delhi High Court granted an ex parte injunction order against Xiaomi for infringement of Swedish telecoms equipment maker Ericsson's patents. The order forbids the company from manufacturing, importing, advertising, and selling the devices that infringe the Standard, Essential Patents (SEPs) in question.
(Edited by Joby Puthuparampil Johnson)