Dixon is a leading contract manufacturer of consumer durables, home appliances, lighting, mobile phones and security devices for brands across the globe.
boAt is a leading home grown brand focused on the audio products.
Both companies have now come together and formed a 50:50 Joint Venture (JV) to manufacture bluetooth enabled audio products.
The JV seems completely synergetic and right on the money. These kind of arrangements is what are needed, if India were to compete with China’s manufacturing prowess – a large contract manufacturer and a mass market focused brand.
As per Dixon, the JV is expected to earn revenues of about Rs 1,000 crore in the next four years, and will be making an investment of about Rs40 crore.
The JV terms are also flexible in manufacturing for other brands and not only boAt. However, how this specific arrangement will pan out, is anybody’s guess – as Dixon is already doing it, so why would it share that business with boAt (unless there is more to the JV and not simply what is known in public domain currently).