272: Chapter 272 Eastern Europe's Choice, Morningside's Reminder

Anthony smiled; at this moment, he finally believed the results in that investigation report.

"Mr. Lei Jun, you are very clever. But don't you think the channels that Reliance invested tens of billions of dollars to build are only worth 30-something percent of the shares?"

Lei Jun remained unyielding.

"Mr. Anil, Xiaomi's technology is the same; its value is actually worth several billion dollars as well. We have invested quite a lot in system chips and supply chains, and these investments have earned us a spot as one of the top five mobile phone platforms in China. We are not those knock-off assembly plants; we have our own core technology."

He paused and looked at the other party: "If it were as you said, how many billions would ours be worth?"

Anil was also thinking about the next negotiation strategy; after all, this was exactly as the person who warned him had said—Lei Jun was a very smart man.

"Mr. Lei Jun, let's both take a step back, how about that?"

"How should we step back?"

"Let's split it 50-50. Xiaomi takes 50%, and Reliance takes 50%. The brand will be called Xiaomi India. Licensing fees will be calculated separately. As for your worry about being kicked out, rest assured, I can write you a guarantee that I will not interfere with the company's internal affairs."

Lei Jun was secretly pleased, but his face remained impassive.

"Mr. Anthony, 50% to 50% makes it difficult to determine decision-making power. Let's do this: I will also take a step back—60-40. Dami Company will hold 60%, and we will control the decision-making power, but you can offer suggestions, and we can produce contract phones according to Reliance's requirements. This will be beneficial for both of us..."

In the end, after negotiating for a long time, both sides finally reached a preliminary contract.

For the joint venture, Xiaomi would hold 54%, and the licensing fee was set at 4% of the joint venture's annual revenue.

The signing ceremony was simple. The two signed the draft, shook hands, and then had the photographer take a few pictures. After all, this was not an official signing.

When taking the photos, Anil and Lei Jun were both beaming with smiles, but the two were thinking of completely different things.

Lei Jun was thinking that this was a dangerous gamble. Since Anil agreed so readily, he would definitely look for an opportunity to regain control. He had to solidify the foundation of Xiaomi India before the other party made a move.

Anil was thinking: "Just wait. Xiaomi will sooner or later belong to Reliance. Not just the India branch, but the entire Dami Company. 46% is just the beginning. Once the joint venture's R&D team matures and they control all the distributors, there will be no need for Xiaomi to exist."

After the signing ceremony ended, Anil invited Lei Jun to lunch.

At the dining table, Anil remained very talkative, chatting about many trends in the India market.

Lei Jun laughed along, but he was thinking about other things the whole time.

Halfway through the meal, Anthony's phone rang. He glanced at the caller ID, and his expression changed slightly.

"I am very sorry, I need to take a call."

He walked to the side and said a few words in a voice Lei Jun could not hear, but Lei Jun saw his expression change from relaxed to worried.

After finishing the call, he walked back over and smiled, but the smile was very forced.

"Mr. Lei Jun, I am sorry, that was my brother calling."

"Mr. Mukesh?"

Lei Jun instantly grasped the key point; this might be the critical opportunity for Xiaomi to turn things around.

Mr. Mukesh Ambani, the richest man in India, top 10 on Forbes globally, and the other head of Reliance Group.

Anil was already a figure of some importance, but compared to his brother, he was several levels behind.

"Does he also want to make mobile phones?" Lei Jun asked tentatively.

Anil snorted coldly.

"He wants to do everything. Telecommunications, retail, oil, finance, and now he wants to do technology. However, Mr. Lei Jun, rest assured, he won't have that chance."

This sentence seemed to be comforting himself, while also warning Lei Jun.

"He and I have a 10-year agreement. Within 10 years after the split, we will mind our own business. He does his thing, and I do mine."

Anil looked at Lei Jun with a smile as he raised his wine glass.

"So Reliance Xiaomi is my project; he will not interfere."

Lei Jun clinked glasses with him and took a sip. But he knew clearly in his heart that agreements between brothers are the most unreliable things, especially when the interests are great enough.

July 10th, Lei Jun had already returned to China for three days.

In these three days, he still had barely closed his eyes. The cooperation between Xiaomi and Reliance had already caused huge controversy internally.

Seven co-founders: four opposed, two supported, and one abstained.

The people in charge of hardware were all opposed. They unanimously believed this was a trap, and that sooner or later, he would kick them out.

Those who supported it argued that if they didn't jump into the pit, they wouldn't be able to enter the India market, so they should get in first and figure it out later. At any rate, they were the side holding the technology.

Furthermore, they were Chinese; with all the tricks their ancestors had played, could they really be outplayed by the other side?

Lei Jun sat in the conference room, listening to everyone's arguments, and felt very worried. He only spoke after listening to everyone's debate...

"What everyone says makes sense, but have you seen how popular Huawei's Mate7 promotion has become?"

"Transsion is even more outrageous; they have already cornered the news on CCTV. The India market is our only choice; after all, it is the market closest to us."

"Mr. Lei Jun, should we consider the Northern Europe market?"

"Russia?" Lin Bin instantly grasped the key point.

Russia might also be an opportunity; after all, Transsion had not entered that market either, and Xiaomi already had some grey-market goods smuggled there.

There were no local mobile phone manufacturers there either; all electronic products needed to be imported. The Russians didn't have that many rules, as long as the profit was sufficient... it was all possible.

That afternoon, the internal team at Xiaomi officially passed this cooperation plan.

After the plan was passed, Lei Jun sent a message to Anil.

"Mr. Anil, the plan has passed. Next week, I will send people to Mumbai to start the preparations for the joint venture."

One minute later, the other party's reply came through.

"That's great, Mr. Lei Jun. Reliance is ready. We will hold a board meeting next Monday. This cooperation will definitely not let you suffer a loss."

After reading the message, Lei Jun also made a call to Liu Qing of Morningstar Capital.

"Mr. Liu, the cooperation to enter the India market is settled."

The person on the other end of the phone was not as happy as imagined. After a long while, Liu Qing finally spoke: "Congratulations, Mr. Lei Jun. However, you still need to be careful of Anil's brother, Mr. Mukesh."

"Why?"

"He is not just the richest man in India; he is the most powerful person in India. Even the government has to give him some face. His younger brother Anil is just a little brother in front of him, and the relationship between their two families has never been that good."

"Does he want to make mobile phones again?"

"He wants to do everything. Reliance Communications originally belonged to Mr. Mukesh, and was later given to Anil after the split, but he has always wanted to take it back. If the joint venture grows big, he will definitely interfere."