Xiaomi India Loses Key Leader Manu Jain

Xiaomi India Loses Key Leader Manu Jain
  • Manu Jain, who took credit for Xiaomi Corp XIACF XIACY set up and scale business in India, has left the company, joining a long list of high-profile departures at the local unit that is increasingly losing market share to rivals, including Samsung Electronics Co, Ltd SSNLF.
  • Jain, who led the India business for seven years and held a global VP role, did not disclose any reason behind his departure. Still, he has been pitching investors ideas for an EV startup for several months, TechCrunch reports
  • Jain had been telling many industry figures for several quarters about his plans to leave the venture.
  • Xiaomi entered the Indian smartphone market in 2014 with its more affordable phones. 
  • Within quarters, Xiaomi made a dent in the market, undercutting rivals Samsung, OnePlus, Oppo, and Vivo becoming the top smartphone vendor in India, a crown it no longer holds.
  • Jain scuffled with a big blow following escalating geopolitical friction between China and India.
  • Jain was likely for a promotion to a higher global role, but the firm changed its mind. 
  • India's Enforcement Directorate also summoned Jain, where according to Xiaomi, he faced threats of "physical violence" in a tax dispute issue.
  • India's Enforcement Directorate alleged the second-largest smartphone vendor of "illegal remittances" and seized ~$730 million.
  • India's anti-money laundering and foreign exchange crime division alleged Xiaomi's Indian subsidiary of sending $55.51 billion ($725 million) of foreign currency payments disguised as royalties "on the instructions of their Chinese parent group."
  • Amid the tension at its India unit, several key Xiaomi executives, including Raghu Reddy, Xiaomi India's business head, have left the firm in recent quarters.
  • Price Action: XIACF shares traded lower by 6.92% at $1.59 on the last check Monday.

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