Aman Gupta, co-founder and Chief Marketing Officer of boAt, a leading audio device manufacturer, recently disclosed that as of 2023, a remarkable 70% of the company’s products are now produced in India. This significant shift from zero domestic production pre-Covid underscores boAt’s commitment to contributing to India’s manufacturing ecosystem. In this article, we explore the transformation in boAt’s manufacturing strategy and its implications.
A Transition to Local Manufacturing
During a conversation with Mohit Sadaani, co-founder of The Moms Co, at Inc42’s ‘The D2C Summit 4.0’, Aman Gupta revealed the substantial change in boAt’s manufacturing landscape. He highlighted that prior to the Covid-19 pandemic, none of boAt’s products were manufactured in India. However, in just a few years, they have managed to achieve a remarkable 70% domestic production rate.
Challenges in Early Stages
Gupta reminisced about the challenges boAt faced during its early stages, particularly in establishing a manufacturing base for audio products within India. At the time of boAt’s inception, the necessary support for creating audio products domestically was lacking, prompting the founders, Gupta and Sameer Mehta, to set up a product team based in China to manufacture and import their products.
A Changing Landscape
According to Gupta, the situation has been evolving rapidly. He noted the Indian government’s initiatives to boost the semiconductor industry and encourage local manufacturing. While acknowledging that not all components are currently produced in India, Gupta remained optimistic about the future, emphasizing that India’s progress in manufacturing will take time and that various stakeholders are actively working towards it.
Pandemic-Driven Localization
The Covid-19 pandemic and the border tensions between India and China since 2020 served as catalysts for boAt’s shift towards local manufacturing. Gupta explained that these events prompted boAt to establish manufacturing facilities in India, with the aim of enhancing supply chain agility and speed.
Impressive Growth Metrics
In a testament to its growing success, boAt’s Chief Marketing Officer shared some remarkable figures. Earlier in the year, he announced that the company had manufactured one crore (10 million) products in India in 2022. By June 2023, this number had surged to 1.5 crores (15 million). boAt collaborates with partners like Dixon for its manufacturing operations.
Financial Performance
Reflecting its growth trajectory, boAt announced that its net sales reached approximately INR 4,000 crores (about $500 million) during the financial year 2022-23 (FY23), representing a robust growth rate of around 39% compared to INR 2,872.9 crores in FY22. Founded in 2015 by Aman Gupta and Sameer Mehta, boAt operates in the audio and wearables market, offering products such as headphones, smartwatches, and speakers. In the previous year, the company put its proposed INR 2,000 crore initial public offering (IPO) on hold and instead secured INR 500 crores in funding.
In conclusion, boAt’s remarkable transformation towards local manufacturing reflects the evolving landscape of India’s manufacturing sector. Aman Gupta’s insights shed light on the company’s journey and its significant contributions to India’s domestic production capabilities.
