Homegrown contract manufacturer Dixon has entered into an equal joint venture with makers of boAt brand of electronics, Imagine Marketing, to undertake design and manufacturing of wireless audio solutions in India.
The partners will also co-invest in the evolving Indian mobile accessory market as part of the ‘Make in India’ initiative.
In this arrangement, both the companies will hold 50% equity shares each, of the Joint Venture company.
This association will enable the companies to meet the changing needs of customers by delivering aspirational, high-quality lifestyle-focused hearable solutions, backed by quality manufacturing and robust R&D.
Comment from Dixon
Mr. Atul B Lall, Vice Chairman & Managing Director: “Dixon has been manufacturing wearables for boAt since the previous fiscal year and it’s a pleasure that our business relationship is getting cemented with this Joint Venture.
Over the years, boAt has built strong brand equity, capitalizing on its early-mover advantage with strong growth momentum through its high-quality audio devices which are known for their style and efficiency.
Through our partnership, we aim to provide boAt with a faster ability to scale up manufacturing in India with our low-cost structure, high quality, and superior execution track record.
We strive to develop innovative products with boAt for not only the discerning Indian consumers but also for global markets.”
Impact on Shares
The scrip opened at Rs5,410 and is currently trading at Rs5,356 down by Rs30.25 or 0.56% from its previous closing of Rs5,386.25 on the BSE.
It touched a intraday high and low of Rs5,439.80 and Rs5,356 respectively.
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