270: Chapter 270 Anthony the "Man-Eating"

Lei Jun looked at this "cannibalistic" contract and dared not agree to it at all.

He was thinking about this man, Anil Ambani.

The younger brother of India's richest man, Mr. Mukesh Ambani, and the head of Reliance Communications.

Reliance Group is India's largest business empire, covering fields such as oil, China Telecom, retail, and finance, with an annual revenue exceeding 100 billion USD.

Although Anil is not as wealthy as his brother, he is still on the Forbes list with a net worth exceeding 10 billion USD.

Why would such a person want to cooperate with Xiaomi?

Lei Jun knew clearly in his heart that what Anil was after was not Xiaomi's money, but Xiaomi's technology, its brand, and its marketing strategies.

As well as the user growth that Xiaomi would bring to local operators in the Indian market.

The question is, what price is Anil willing to pay?

Just based on the conditions in this contract, that is not enough.

"Mr. Lei, this contract is really quite good. We will actually contribute 60% of the capital, and Xiaomi will contribute 40%. Production, R&D, and sales will all be in India."

Anil's expression was very serious.

"This plan is very favorable for Xiaomi."

Lei Jun's heart sank.

Sure enough, as soon as he presented the plan, he showed his fox's tail.

With production, R&D, and sales rights in India, this meant that Xiaomi would have to hand over its core technology.

How to tune the chips, how to optimize the system, and how to manage the supply chain—if all these things were in India, then it wouldn't be Xiaomi calling the shots anymore.

So, Lei Jun took the initiative to change the subject.

"Mr. Anil, if that's the case, what about the brand?"

Lei Jun put down his knife and fork, looking at him with a smile: "Would it still be the Xiaomi brand?"

Anil smiled.

"Mr. Lei, please believe in my sincerity.

I am just looking to increase our market share and will absolutely not interfere with Xiaomi's control."

"As for the brand you mentioned, it would of course be a joint venture between the two companies."

"It could be called Reliance Xiaomi, or it could be called Xiaomi India; everything is open to discussion."

Lei Jun gave a bitter smile; originally, he just wanted to launch in the Indian market, but he hadn't expected the other party to come knocking.

The key is that now he couldn't even change the subject, this...

"Then what about the technology?

How will Xiaomi's technology be accounted for?"

"When the project starts, we can accept licensing.

Dami Company will license the technology to the joint venture, and the joint venture will pay a licensing fee.

If Mr. Lei feels at a disadvantage, I can pay this money myself.

However, regardless of anything else, the joint venture must have its own R&D team; it cannot rely on Xiaomi for blood transfusions forever."

Anthony waved his hand, indicating that everything was negotiable.

But Lei Jun heard the subtext in his words.

Technology licensing is short-term, while the joint venture doing its own R&D is long-term. Once the joint venture's R&D team is established, Xiaomi's technology will become worthless.

By then, Xiaomi's role in the joint venture would become increasingly marginalized.

After all, the other party is a local faction, and they have various means to squeeze Dami Company out.

"Mr. Anil, I have felt your sincerity.

However, establishing an Indian branch is a very important issue. I need to go back and discuss it with my team, and I also need to return to China to discuss it with the shareholders."

Lei Jun stood up.

"Of course." Anil also stood up. "Mr. Lei, I am not in a hurry. But I want to show you something."

He walked to the wall and pressed a button.

The curtain on the wall slowly pulled back, revealing the entire wall behind it, which was a huge map of India densely covered with red dots.

"Reliance Communications' channel coverage." Anthony pointed to those red dots. "Two hundred million China Telecom users, the largest retail network in all of India.

From the luxurious stores in Mumbai and New Delhi to the small rural shops in Uttar Pradesh, there are Reliance channels everywhere."

He turned around and saw Lei Jun.

"Mr. Lei, it would take Xiaomi at least three years to establish distribution in India on its own.

With Reliance, three months is enough."

Lei Jun looked at that map, his eyes full of desire.

He calculated the figures in his heart.

Xiaomi had less than 500 million yuan in its accounts. Redmi was being beaten down by enjoy 2 domestically, return rates were skyrocketing, and distributors were complaining.

Entering India was a new growth point for Xiaomi's business.

If he could leverage Reliance's channels, the growth speed would definitely be faster. Although there were certain risks, the benefits were higher.

After all, Huawei relied on operators domestically and then became the number one in domestic sales.

If Xiaomi... Lei Jun also knew that the person in front of him was very greedy.

"Mr. Anil, I will consider it carefully."

Anil smiled and reached out his hand: "Mr. Lei, I look forward to your good news.

By the way, regarding the approval for the Indian version of Redmi, I have already found someone to help you complete all the procedures. You can hold the press conference at any time, and please remember to invite me when you do."

Lei Jun's smile stiffened.

Although this was a gesture of goodwill, it was also a reminder.

"I can help you pass the approval, but I can also block your approval!"

"Then thank you very much, Mr. Anil. I will consider it as soon as possible, and it won't take too long."

Back in the car, Lei Jun was thinking about every word Anil said.

The other party was going to such great lengths just to take advantage of the situation and take away the mobile phone manufacturing technology.

After all, although the Indian market is large, it completely lacks large-scale mobile phone production technology.

Although assembly plants don't require much technical expertise, wanting to produce Smartphones requires technology for chip tuning and screen tuning, which are things the Indian market lacks and are the prices Xiaomi would have to pay.

If they cooperate with Reliance Group, Xiaomi would need to give up its brand, give up its technology, and it is also very likely that they would be kicked out.

This is a huge trap.

But the problem is, he has no choice.

Back at the hotel, Lin Bin was already waiting.

He was a co-founder of Dami Company at the time and also Lei Jun's most trusted partner.

Coming to New Delhi this time, Lei Jun did not let him attend the banquet, just to keep him clear-headed.

"Old Lei, how did the talks go?"

Lin Bin poured a glass of water for Lei Jun to help him sober up.

But Lei Jun was not drunk; all of that was just an act. He recounted Anil's plan.

After Lin Bin finished listening, he shook his head slightly.

"Old Lei, wake up. Do you know what game Anthony is playing?"

Lei Jun nodded.

"Of course I know he wants Xiaomi's technology, Xiaomi's brand, and in the end, to kick Xiaomi out."

Lin Bin looked at him: "Then why would you still agree?"

Lei Jun leaned back on the sofa, closed his eyes, and was quiet for a long time before finally saying:

"Old Lin, you tell me, do we have a choice?"