IMagine Marketing research Report

BOAT is a leading homegrown manufacturer and seller of consumer electronics products. Have an attractive offering of wide-ranging, high-quality and aspirational lifestyle-focused consumer products at accessible price points, under multiple brands. The products offered across a variety of price points and customer segments across multiple product categories, include

1.Audio (wired headphones and earphones, wireless headphones and earphones (neckbands), true wireless stereo (“TWS”), Bluetooth speakers and home theatre systems and sound bars),

2. Wearables (smartwatches),

3. Gaming accessories (wired and wireless headsets, mouse and keyboards),

4. Personal care appliances (trimmers and grooming kits) and

5. Mobile accessories

The company sells its products under the boat, RedGear, TAGG, Misfit, and DEFY brand names. The company also sells its products online. Currently, the firm works with Chinese manufacturers and suppliers.

The company has collaborated with participants such as Qualcomm Bharat FIH Ltd, Google, Dolby International AB, Dolby Laboratories Licensing Corporation and Realtek Semiconductor Corp and integrate components and technology developed by them in its products, thereby enabling to offer wide-ranging, high quality and aspirational lifestyle-focused consumer products.

Highlights of Financial Performance:

· Revenue from operations has grown at a CAGR of 141% from FY19-21. In FY21 Revenue came in at ₹ 1313.72 Cr.

· EBITDA Margin improved from 6.1% in FY19 to 9.6% in FY21.

· PAT has grown at a CAGR of 228 % from FY 19-21, in FY 21 Company reported Profit of ₹ 86.54 Cr. from ₹ 47.78 Cr.

· Company reported ROE of 18.64% in FY21 and ROCE of 17.11%.

· On consolidated basis company reported cash flow of  ₹ -142.10 Cr. and free cash flow of ₹ -147.29 Cr. in FY 21.


· They are largest Indian digital-first brands with leading market positions across multiple fast-growing product categories

2.“boAt” has strong brand value with strong market positioning, India per capital is increasing and population is still young which offer companies like boat a long runway for growth.   


· Relies on a number of third-party contract manufacturers and component suppliers for production of the products.

·  Failure in successfully identifying and responding to changing customer preferences and market developments in a cost-effective manner.

Portfolio of Imagine Marketing: Portfolio includes products under flagship “boAt” brand, as well as under other brands such as “RedGear”, value-oriented gaming accessories brand, “TAGG”, premium audio and wearables brand, “Misfit”, personal care and grooming sub-brand, and “DEFY”, value-oriented audio brand. Through this portfolio of brands, they are able to target specific segments and channels within the consumer devices market and offer a range of aspirational products at affordable price points, thereby catering to a large section of the Indian population.

Sales Channels: Company is expanding its presence across online and offline channels widen their distribution footprint. India’s large and fast-growing e-commerce ecosystem and its enabling infrastructure allows digital-first brands to instantly cater to over 90% pin codes across India (Source: RedSeer Report). As a digital-first consumer products company, they have scaled their business by selling products predominantly through established online marketplaces and continues to expand their online presence through additional online marketplaces and own website. offline presence complements their digital-first model and further helps develop brand visibility and extends their reach. They are exploring opportunities in overseas markets, which can be a compelling growth vector for the company. As part of our growth initiatives, they are focussing in international markets such as the United Arab Emirates, Nepal and countries in the South East Asia region.

India Retail Market

India’s retail market grew at a CAGR of 11% between 2016-2019 to approximately ₹68 trillion in 2019. The increase in consumption and income level, growth of emerging households and increasing demand from Tier 2+ markets led to the soaring growth of the retail market. However, the market was significantly impacted due to COVID-19 pandemic. Owing to the effects of the pandemic, the market declined by 14% in 2020 to approximately ₹59 trillion. The impact of the second and subsequent COVID-19 waves on the retail market has been and is projected to continue to be relatively low owing to the better preparedness, the retail market is projected to bounce back with a growth rate of 11% to approximately ₹98 trillion by 2025.

Revenue Breakdown:

The largest product line of BoAt was wireless earphones and headphones. The sales grew by 2.5 times to ₹ 947.4 crore in FY21 from Rs.375.7 crore in FY 20. The second position was taken by the wireless speakers. Sales of the speakers grew up to 2.6 times from Rs.113.2 crore in FY20 to Rs.297.4 crore during FY21. The manufacturing and assembling of the company take place in China. The company plans to shift its manufacturing industry to India through the Indian Government’s PLI (Production Linked Incentive) scheme. The company’s total annual expenditure grew 2.2times from Rs.637.6 crore in FY20 to Rs.1420.1 crore during FY21.


Within 7 years, boAt is able to capture mass population of India as it has good entry pricing and is able to garner mass population of India and they have plans to capture the whole world with their innovative and pocket friendly products. It has established itself as the 5th largest wearable brand in the world and the number 1 brand in India. The marketing strategies of the brand are commendable. They have smartly used the digital platform for the promotion of their products. Even during the pandemic, the brand used different tactics to stay relevant in the market. Their popularity has forced other big companies like JBL and other big companies to lower their product prices to compete in the affordable audio device category. Biggest risk to Boat is that they are too much dependent on chine for the products, as major inputs come from China, company is trying to replace this by investing in India through PL. Imagine Marketing has a great future going forward as Indian government is promoting Manufacturing sector and want self dependence in electronic sector and with young population this company can flourish if they keep on innovating and come up with user friendly and pocket friendly products.

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