Boat makes moves to shift manufacturing from China to India

Boat Airdopes 601 ANC
(Image credit: Boat)

Image Marketing, the parent company of India's top earwear brand Boat, and contract electronics manufacturer Dixon Technologies (India) are coming together through a 50:50 joint venture to manufacture Bluetooth-enabled audio devices here. 

Boat, which hitherto had got majority of its manufacturing done from China, is now shifting that to India in a phased manner. The new JV announced today is an important step in that direction. The new company will churn out products from Dixon's manufacturing facility at Noida, Delhi.

Boat is hoping to make the most out of the government's proposed product linked incentive (PLI) scheme for wearable makers.

40% of Boat's products to be made in India by 2024

Boat had recently got a $100 million investment from US-based private equity major Warburg Pincus. At that time time itself, company sources had revealed that it would use the money to move its manufacturing from China to India.

As of now, around 10% of Boat's products are manufactured in India. The remaining 90% is churned out in China and Vietnam, with the latter contributing a measly 1%. 

Boat's target is to manufacture close to 40% of its production volume in the home market by 2024. In a few years, it is expected that India and Vietnam will manufacture around 50% of Boat’s products, while China will handle the remaining 50%.

Boat to focus on new IoT-enabled wearables

A joint statement from Boat and Dixon said that the JV would undertake design and manufacturing of wireless audio solutions in India and will co-invest in the Indian mobile accessory market. The two companies will have will have two board of directors each in the new company.

It should be said that Dixon has already been manufacturing wearables for Boat since the previous fiscal year. The new JV takes that relationship to the next level. This partnership will help Boat to scale up its manufacturing in India rapidly.

Imagine Marketing had recently announced the acquisition of Singapore-based KaHa Pte, an end-to-end smart IoT product development company. Through the takeover, Boat is expected to make next-generation IoT enabled wearable products.

Founded in 1993, Dixon Technologies designs and manufactures consumer durables, home appliances, lighting, mobile phones, security devices, set-top boxes, wearables and medical equipment for other brands.

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Balakumar K
Senior Editor

Over three decades as a journalist covering current affairs, politics, sports and now technology. Former Editor of News Today, writer of humour columns across publications and a hardcore cricket and cinema enthusiast. He writes about technology trends and suggest movies and shows to watch on OTT platforms. 

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