While the duo is initially looking to invest a sum close to Rs 40 Cr under the JV, it might also explore the possibility of designing and manufacturing for other brands in the future
Boat’s parent company Imagine Marketing, and electronics contract manufacturer Dixon Technologies have signed a joint venture. The duo will be working together to design and manufacture wireless audio solutions. They also have plans to invest in the mobile accessory market under the Make in India Initiative.
“Through our partnership, we aim to provide Boat with a faster ability to scale up manufacturing in India with our low-cost structure…We strive to develop innovative products with boAt for not only the discerning Indian consumers but also for global markets,” Economic Times quoted Dixon’s vice chairman and Managing Director Atul B.
Lall.
Making for other brands
While the duo is initially looking to invest a sum close to Rs 40 Cr under the JV, it might also explore the possibility of designing and manufacturing for other brands in the future. Vivek Gambhir, CEO at boAt confirmed that the JV will initially have Boat as one of its anchor customers. The JV will initially be manufacturing wireless audio products, and might foray into designing and manufacturing other categories in the future.
It is worth mentioning here that rumors of a PLI scheme around wearables and hearables is in works at the Ministry of Electronics and IT (MeitY). The duo will also be looking to apply for this scheme if it gets announced by the government of India. The yet to be announced PLI is touted to be one of the biggest PLIs in the country.
Dixon has been contract manufacturing for Boat for over a year now. Dixon Technologies had recently announced setting up of a Rs 300-crore electronic manufacturing plant in Ludhiana in a joint venture with the Bharti group. Dixon’s Chairman Sunil Vacchani had noted that Dixon Technologies and Beetel Teletech Limited had entered into a JV which has acquired a manufacturing facility in Ludhiana.
