Nothing plans CMF spin-off as majority Indian-owned venture with Optiemus

Nothing plans to spin off CMF into an India-headquartered, majority Indian-owned company. Optiemus is set to initially acquire 51.1% of the proposed joint venture, combining local manufacturing, ownership and end-to-end smartphone R&D, subject to definitive agreements.

— Source publishedTue, 22 Sept, 2026, 18:34 IST·First seen Tue, 22 Sept, 2026, 18:47 IST·Source YourStory

What happened

Nothing plans to spin off CMF into a majority Indian-owned, India-headquartered company. Optiemus will initially hold 51.1% of the proposed venture, which will

Key facts

  • Optiemus will initially acquire 51.1% of the proposed joint venture
  • Domestic electronics value addition: 18-20%
  • Electronics Component Manufacturing Scheme outlay raised from Rs 22,919 crore to Rs 40,000 crore
  • India smartphone shipments fell 10% year-on-year in Q2 2026
  • CMF target: 100 million phones annually

Why this matters

The transaction signals Nothing’s willingness to localize ownership and operations in India, making CMF a potential partnership, manufacturing and ecosystem-development vehicle rather than a wholly controlled sub-brand.

What to watch

  • Final ownership structure, voting rights, board composition and whether Nothing retains vetoes over design, software and brand decisions.
  • Whether smartphone R&D, software support and key patents move into the JV or are only licensed from Nothing.
  • First India-specific CMF handset launches, pricing versus Redmi, Realme, Motorola and Samsung, and evidence of differentiated specifications.
  • Manufacturing location, localization percentage, supplier commitments and eligibility for Indian production incentives.
  • Offline store additions, service-center coverage, carrier partnerships and inventory availability after the JV launch.
  • Any indication that CMF products will be exported from India or sold independently outside India.
  • Nothing's own India product strategy and whether it continues competing directly with CMF in adjacent price bands.
  • Finalize definitive JV agreements, including IP licensing, board control, funding commitments and product-development responsibilities.
  • Use Indian production to pursue lower handset prices, faster model refreshes and localized financing or trade-in offers.
  • Expand offline retail, operator relationships and service coverage beyond Nothing's current enthusiast-led distribution model.
  • Build India-based engineering around low-cost smartphones, audio products, wearables and localized software features.
  • Seek component-sourcing incentives and position CMF as an export-capable manufacturing platform, not only a domestic brand.

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