Imagine Marketing Limited was incorporated in 2013 and is
based in Delhi, India. 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. Company offers wired headphones and earphones,
wireless headphones, and earphones (neckbands), true wireless stereos (TWS),
Bluetooth speakers, home theatre systems, and sound bars, wearables
smartwatches, gaming accessories, such as wired and wireless headsets, mouses,
and keyboards, personal care appliances, including trimmers and grooming kits, and
mobile accessories, such as chargers, cables, power banks, and other
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. As of
September 30, 2021, the company has operated entirely out of leased premises.
They have leased their offices in New Delhi and Mumbai, co-working space in
Bangalore, and warehouses.
A
digital-first consumer products company and one of the largest Indian
digital-first brands in terms of revenue from operations for the financial year
2021. (Source: Company DRHP and RedSeer Report)
As
on September 30, 2021, for the second quarter of Financial Year 2022, they were
ranked #1 in India among the wireless hearables brands by value and volume and
#2 among smartwatch brands in India in terms of volume(Source: RedSeer
Report). Moreover, their market share in both wireless hearables and
smartwatch segments has consistently increased over time, and for the quarter
ended September 30, 2021, they had a market share of 48% and 23% in terms of
volume, and 30% and 13% by value, in the branded wireless hearables and
smartwatch markets, respectively (Source: RedSeer Report).
Company digital-first approach has conferred them a set of competitive advantages over traditional offline-first business models, and serves as a strong enabler towards achieving our vision of disrupting the incumbent industry landscape within product categories we identify, rapidly building reach and scale, and establishing and maintaining a strong brand in the minds of consumers that can help us garner leading market positions.
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.
Strengths:
· 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.
Risks:
· 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