NEW DELHI :
Contract manufacturer Dixon Technologies (India) Ltd has entered into an equal joint venture with Imagine Marketing Pvt. Ltd, the owner of the boAt brand, to design and make wireless audio devices as the company boosts local production ahead of its initial public offering.
The joint venture is targeting a revenue of ₹1,000 crore in the next four years, said top executives at the two companies. The move will help Imagine Marketing shift a significant part of its production base from China to India.
The company, which sources 90% of its products from China, decided to cut its dependence on overseas markets because of the supply disruptions caused by the pandemic.
“For us today, over 90% of our products are actually manufactured in China, little less than 10% are manufactured in India, and a very small portion is manufactured in Vietnam. The intent for us over the next four years would be to have a majority of our wireless audio devices manufactured in India. We are targeting 50% over the next four years,” said Vivek Gambhir, chief executive officer of Imagine Marketing.
Imagine’s manufacturing partner, Dixon, which counts Xiaomi, Samsung, Hisense, VU, Nokia, Panasonic, TCL, Lloyd, Flipkart, Philips, and Toshiba as its clients, reported revenue of ₹6,448 crore in FY21. Dixon also manufactures some boAt products.
The joint venture could help Imagine Marketing innovate at a faster pace and develop a more cost-effective way of manufacturing, said a top executive at the company.
Covid has been a wake-up call for the electronics industry that is overly dependent on China, the executive said. “This has led to a significant amount of disruption. Also, our government is keen and willing to support us to develop a vibrant manufacturing ecosystem,” he said.
Both companies will co-invest in the evolving Indian mobile accessory market, thereby paving the way towards “Make in India” in this category, the two said.
Gambhir said the new entity could also manufacture products other than Bluetooth audio devices. Imagine Marketing sells audio gear, smart wearable, personal grooming, mobile accessories.
