Homegrown brand boAt Lifestyle, which sells products such as earphones, headphones, speakers and smart watches, will be shifting majority of its manufacturing from China to India to tap into government's proposed product linked incentive (PLI) scheme for wearable makers.
boAt has recently received $100 million investment from US-based private equity major Warburg Pincus and plans to use the capital to build on its growth momentum, and to move the majority of its manufacturing from China to India, reports Times of India.
According to the report, Aman Gupta and Sameer Mehta, the founders of boAt, said that the company is looking to tap into government's proposed PLI scheme for wearable makers.
"The scheme will create a level playing field for manufacturers and players over a period of time with the Chinese. We have taken some baby steps. Over the next two-three quarters you will see some products coming out of India, but the idea is to get to about 50-60 per cent of our manufacturing done in India through a combination of outsourcing and in-house manufacturing,” Mehta was quoted as saying.
Even though there may not be an immediate pricing advantage but government's support for local manufacturing will eventually make it economical, Gupta said.
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