Dixon Technologies, boAt in joint venture for wireless audio devices

is targeting joint venture revenue 1,000 crore over the next four years, said top executives of both the 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 reliance on foreign markets due to supply disruptions caused by the pandemic.

“For us today, over 90% of our products are actually manufactured in China, a little less than 10% are manufactured in India, and a very small portion is manufactured in Vietnam. In the next four years, we intend to have most of our wireless audio equipment manufactured in India. “We are targeting 50% over the next four years,” said Vivek Gambhir, chief executive officer, 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 6,448 crore in FY21. Dixon also manufactures some boAt products.

A top company official said the joint venture could help Imagine Marketing innovate at a faster pace and develop a more cost-effective way of manufacturing.

The executive said that Kovid is a wake-up call for the electronics industry which is highly dependent on China. “This has caused a significant amount of disruption. At the same time, our government is keen and willing to support us in developing a vibrant manufacturing ecosystem.”

Both the companies will co-invest in the growing Indian mobile accessory market, thereby paving the way for “Make in India” in this category.

Gambhir said the new entity could also manufacture products other than Bluetooth audio devices. Imagine Marketing sells audio gear, smart wearables, personal grooming, mobile accessories.