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With the acquisition of NOISE, TATA is all set to globalize made in India earphones

TFI Desk by TFI Desk
11 March 2022
in Trending
Noise Titan India Brand
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  • TATA group is set to acquire NOISE, one of the leading wearable brands in India
  • Noise has shown tremendous promises beating Chinese companies like Realme and Huami
  • Modi Government’s Aatmanirbhar Bharat and PLI scheme is incentivising local companies to go global

In the last few years, Indian accessories brands, especially the earphone companies like boAt and Noise have made a name for themselves. They deliver quality products at affordable prices. Noise is one of the leading wearable brands in the country and Titan Company, the consumer items arm of Tata Group, is planning to acquire it.

Noise to go global

Titan, which sells fashion accessories such as jewellery, watches and eyewear, has an annual revenue of 21,000 crore rupees and a profit of more than 2,000 crore rupees. In the last few years, the sales and market capitalisation of the company has risen exponentially, and it is very aggressive in its expansion plans.

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The entry of Titan into the wearables category would give Indian earphones a global standing. These affordable products would not only be sold in India but in countries around the world.

As per a report by Livemint, The transaction is likely to value Noise, run by Gurugram-based Nexxbase Marketing Pvt. Ltd, at about ₹700 crore- ₹800 crores. The valuation is based on twice the consumer electronics maker’s revenue of ₹400 crores, which companies in the wearables category typically attract.

Indian companies seizing the day

It is the right moment for Indian consumer electronics companies to make a name for themselves in countries around the world. Chinese products are being boycotted in many countries, in some due to anti-China sentiment and others due to poor quality of products. Indian companies like boAt and Noise, which offer quality products at affordable prices, should seize the opportunity.

The big brands with deep pockets like Tata Group or Reliance Industries can provide them with a platform to capitalize on this opportunity.

Chinese brands bite the dust

Noise reached the top of the leader board by beating Chinese brands such as Realme and Huami, known for their aggressive pricing. Founded in 2018 by two brothers Gaurav Khatri and Amit Khatri, Noise currently has over 19 products in smart wearable and audio categories. Just like boAt, Noise is launching earphones with premium features at competitively aggressive prices, which are becoming an alternative to boAt among Indian consumers.

This will not only ensure the elimination of Chinese companies from this sector but will also create a sense of competition among Indian companies. This sentiment is positive for any emerging economy.

Noise shifting base back to India

Noise saw a 100 per cent year-on-year (YoY) growth and double-digit month-on-month (MoM) since the pandemic began. The company sold over 100,000 smartwatches per month during the year and had set an ambitious target to double the numbers during 2021.

Noise, which has an in-house R&D Centre, manufactures products from Original Design Manufacturers in China. However, the company is now aiming to bring some of the manufacturing setups to India to capitalize on the Modi government’s PLI scheme.

The Khatri brothers in an interview stated, “We are expecting some amount of assembling to start in 2021 for our industry, but it will take much longer for the entire ecosystem to be shifted to India. Even when it starts we will partner with bigger manufacturers first as it is not a core focus area for use,”

Read More: boAt and Noise: Leaders in the Indian accessories market, but it is time to bring back manufacturing in India

Role of Aatmanirbhar Bharat and PLI scheme

The acquisition of Noise by Titan will allow the company to explore the Western markets just like boAt. boAt, co-founded by Aman Gupta and Sameer Ashok Mehta in 2016, has made steady progress over the years. In December 2020, boAt became the world’s 5th largest wearable brand. Additionally, boAt also solidified its position in the Indian market by capturing 1/3rd market share.

Riding on the Modi government’s Aatmanirbhar plank and PLI scheme, Indian companies are slowly making a mark for themselves in the world.

Tags: boAtBusinessNoiseTata GroupTitanWearable Brands
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