Aims to achieve revenue of Rs 1,000 crore in four years
New Delhi, NFAPost: Consumer electronics brand BoAt’s parent company, Imagine Marketing Pvt Ltd, has entered into a 50:50 joint venture with Dixon Technologies Ltd to manufacture wireless audio products in India. The two players expect the JV entity to achieve revenues of ₹1,000 crore by the end of four years.
BoAt CEO Vivek Gambhir told BusinessLine that in a short span of time, the company has established a clear leadership in the personal audio segment.
“We continue to strengthen our presence by focusing on launching competitive and more innovative products, diversifying our supply chain and by making significant investments in design, R&D and technology partnership. This joint venture with Dixon is an important milestone for us to establish a strong manufacturing ecosystem in India,” said BoAt CEO Vivek Gambhir.
He also said this will help BoAt to become more agile, launch more innovative products and also bring down the cost of products for consumers.
Supply chain leveraging
The joint venture will help BoAt to establish a manufacturing base in India and de-risk its supply chain by leveraging on the high quality and low-cost structure of Dixon Technologies.
Dixon Technologies CFO Saurabh Gupta added that the company feels confident that by the end of the fourth year, the JV will achieve revenues of about Rs 1,000 crore.
“The total capex over the period of four years will be to the tune of Rs 40 crore. Out of this about Rs 15 crore will be the investment made by both the partners as equity contribution and the balance Rs 25 crore will be funded through strong cashflow generation by the JV entity,” said Dixon Technologies CFO Saurabh Gupta.
IP development expertise
The joint venture will initially focus on manufacturing Bluetooth-enabled wireless audio devices and at a later stage will also explore opportunities to make other lifestyle-oriented products. Gambhir added that it will go beyond manufacturing and also focus on building expertise in IP development and strengthen in-house design capabilities.
“The headroom for growth, in the categories that we are present in, is tremendous. We will strive to develop innovative products through this JV not only for the Indian consumers but also for international markets,” he added.
Established in 2013, the holding company of brand BoAt is Imagine Marketing Pvt Ltd and it offers a range of products that include audio gear, smart wearables, personal grooming products and mobile accessories, among others. The cofounders include Sameer Ashok Mehta and Aman Gupta.