boAt Boosts Domestic Production to 75.83 Percent in Q1 FY26

boAt has strengthened its position as one of India’s most vertically integrated consumer tech companies, manufacturing over 75 million units in India as of June 30, 2025, and transitioning 75.83% of total production to domestic facilities in Q1 FY26, up sharply from 39.65% in FY23. 

The company’s rapidly scaled manufacturing backbone, supported by its joint venture with Dixon Technologies—Califonix Tech and Manufacturing Private Limited and a broad network of trusted contract manufacturers, now anchors a supply chain built for speed, cost efficiency and long-term resilience. For the three-month period ended June 30, 2025, boAt produced 6.36 million units in India, compared with 4.42 million units a year earlier, underscoring the success of its “Make in India” strategy and deep localisation efforts across critical components such as PCBs, batteries and plastics.

At the centre of this transformation is Califonix, the dedicated JV for Bluetooth-enabled wireless personal audio products, which has become a cornerstone of boAt’s domestic manufacturing shift. Califonix accounted for 37.46% of total units in Q1 FY26, producing 3.19 million units. Over FY25, it manufactured 13.44 million units, translating into a robust 44.80% capacity utilisation against an annual installed capacity of 30 million units, up from 29.03% utilisation in FY24. This expansion has strengthened process control, quality oversight and supply continuity, with all JV-produced units manufactured exclusively for boAt. Complementing this is boAt’s flexible contract manufacturing base both in India and overseas that allows the company to scale output, optimise category-wise capacity and maintain agility.

The company’s localisation strategy extends beyond assembly into component-level manufacturing, a key step in reducing import dependency and enhancing cost competitiveness. By transitioning the production of PCBs, batteries, plastics and straps to domestic suppliers, boAt expects 15–20% savings in duty costs versus finished goods imports. The localisation pipeline is already advanced: as of June 30, 2025, boAt had localised a majority of PCB supply volumes, with trials for additional components underway. These initiatives are expected to materially improve price competitiveness, shorten lead times, strengthen supply chain resilience and enable faster product iterations, an essential advantage in high-velocity categories like audio and wearables.

The company’s manufacturing model offers strong strategic leverage. boAt controls product design specifications, engineering standards and the manufacturing process, while working in close coordination with suppliers and manufacturing partners to customise components such as chipsets and PCBs. This allows for high degrees of product standardisation, stringent quality control, seamless integration of new technologies and faster time-to-market. Through value engineering initiatives, boAt has also optimised cost structures without compromising performance, resulting in lower warranty costs, improved component reliability and enhanced consumer satisfaction.

boAt’s supply chain transformation is reinforced by favourable policy tailwinds. India’s manufacturing ecosystem has been accelerated by the “Make in India” program, the Phased Manufacturing Programme (PMP) for wearables and hearables, and Production Linked Incentive (PLI) schemes. As of March 2025, PLI investments across electronics exceeded ₹1.76 lakh crore, with cumulative production crossing ₹16.50 lakh crore, signalling an industry-wide shift to domestic production. The broader “China + 1” strategy, backed by upcoming component-level incentives, is expected to deepen value addition in India, helping brands like boAt reduce dependency on foreign supply chains and elevate India’s position as a global manufacturing hub for consumer devices.

The company’s end-to-end approach spanning sourcing, customisation, manufacturing, quality control, and localisation has also enabled it to generate employment for over 6,000 contract workers across its JV and supplier network. The multi-layered model creates a balance between in-house control and the flexibility of outsourced production, ensuring that boAt can quickly respond to demand surges, category shifts and emerging technology trends. The company continues to work directly with suppliers to standardise key components across product families, enabling faster product cycles and deeper cost efficiencies.

As boAt scales its manufacturing footprint, it plans to further bolster vertical integration through automation-led upgrades such as soldering and gluing automation, enhanced testing protocols and the establishment of centres of excellence for design-for-manufacturing and audio quality optimisation. These initiatives, coupled with boAt’s R&D investment roadmap, aim to create a supply chain and manufacturing ecosystem that can support premiumisation, innovation, and high-volume production with world-class quality.

In a consumer tech landscape driven by rapid product cycles and rising expectations for domestic value addition, boAt’s manufacturing and supply chain capabilities have become a core strategic moat. By strengthening its India-first production model and while retaining global sourcing flexibility, the company is building a durable advantage rooted in cost competitiveness, operational agility and innovation readiness.