A Dynamic Transformation in the Offing
#AnkitMaini #VeiraGroup #TelevisionIndustry #TelevisionManufacturing“India is rapidly emerging as a compelling choice for global businesses seeking to diversify their production and sourcing beyond China. The potential for the next decade appears incredibly promising for India’s market growth.”
January 2024 : In this exclusive interview with Niranjan Mudholkar, Editorial Director, Pro MFG media, Ankit Maini, Managing Director, Veira Group, shares that ‘the remarkable success during the ongoing festive period has solidified his confidence in these evolving trends, and Veira is enthusiastic about carrying this momentum forward into the upcoming year, indicative of the dynamic transformation within the television industry’.
How has been the recent festive season for Veira. How has it impacted Veira’s business targets for the Q3 of FY 2023-24?
The festive season has proven exceptionally rewarding for Veira. The alignment of the ICC Cricket World Cup with Diwali resulted in a remarkable surge in sales, propelling us to achieve an all-time high in sales volume. Particularly noteworthy was the substantial increase in demand for larger-sized televisions equipped with smart features. This trend signifies a notable shift in consumer preferences, with larger screens and smart functionalities taking precedence in the market. The remarkable success during this festive period has solidified our confidence in these evolving trends, and we are enthusiastic about carrying this momentum forward into the upcoming year, indicative of the dynamic transformation within the television industry
You are also a key member of CEAMA, the Computer Electronics and Appliances Manufacturing Association, where you work to promote overall industry growth and to address various challenges. dilemma. So, what is the Indian electronics industry’s take on the ‘China plus one’ strategy?
India is rapidly emerging as a compelling choice for global businesses seeking to diversify their production and sourcing beyond China. The potential for the next decade appears incredibly promising for India’s market growth. Notably, multinational corporations are displaying heightened interest in the country, exemplified by Foxconn’s recent approval to invest an additional US$ One Billion in its upcoming manufacturing facility dedicated to Apple products. This development signifies the evolving landscape of opportunities in India’s manufacturing sector. With such substantial investments and increasing attention from international players, we anticipate India’s trajectory to be among the fastest-growing markets globally over the next 10 years. This influx of interest and investments strongly positions India as a pivotal player on the global stage, poised for significant growth and expansion in diverse sectors.
How are the existing government policies encouraging the local appliances manufacturing industry? Do you think the PLI Scheme should be considered for TV manufacturers as well?
The Government of India initiatives like ‘Make in India’ and import restrictions have significantly bolstered local appliance manufacturing, fostering a positive impact on the industry. These policies have notably encouraged local production, resulting in enhanced energy efficiency standards for products while preventing the influx of subpar or refurbished TVs into the Indian market. This shift towards localized manufacturing has led to a surge in localized procurement, subsequently boosting the production capacity of Indian manufacturers. Presently, with the exception of PCB and OC, nearly all other components are domestically produced, marking a substantial achievement. Over 90 percent of LED TVs consumed in India are now proudly labelled as ‘Made in India’. While the LED TV segment doesn't require a PLI scheme, further steps are crucial to nurture and expand this ecosystem of local sourcing and manufacturing. Initiatives such as incentive schemes for LED TV exports and a GST slab of 18 percent for larger-sized LED TVs could play pivotal roles in encouraging and sustaining this growth trajectory. These strategic measures would not only fortify the domestic manufacturing landscape but also solidify India’s position as a manufacturing hub on the global stage.
Veira has recently invested and built its new manufacturing plant. Tell us more about this investment and how you plan to leverage the same?
Veira proudly inaugurated its cutting-edge, expansive manufacturing plant spanning three lakh Sq. Ft., featuring North India's most extensive clean room and LCM facility. Equipped with state-of-the-art Japanese CPET machines, SMT setup, humidity chambers, and dust control chambers, this facility marks a significant milestone in our production capabilities. The impact has been remarkable - our year-on-year sales volume has doubled, paving the way for an ambitious target of achieving 1500 Cr. in sales this year, representing an 80 percent growth in value from the previous year. Our expanded capacity has enabled us to onboard new customers, collaborating with both national and international brands. This monumental growth trajectory solidifies Veira's position as the fastest-growing TV company and the largest TV ODM in India, marking a significant milestone in our journey of innovation and expansion.
How is Veira contributing to the ‘Make in India’ initiative in terms of localizing its components manufacturing in India?
The production of our LED Panels takes place in India, while the OC and Back Light components are imported and subsequently assembled within the country. In the PCBA phase, the PCB components are sourced internationally, yet the entire Surface Mount Technology (SMT) process occurs within our facilities in India. Our commitment to domestic production extends to our in-house moulds, enabling the creation of 100 percent plastic cabinets sourced from local Indian suppliers. Additionally, we emphasize reliance on Indian suppliers for both the speakers and the packing materials, showcasing our dedication to supporting local industries and fostering a self-reliant ecosystem within the country.
Tell us something about Veira’s partnership with the proprietary Coolita OS. What does it mean for the Veira brand and its growth aspirations?
We pride ourselves on being the pioneering partner of Coolita OS in India, providing the licensed solution tailored for the price-sensitive Indian market. Our commitment lies in offering a stable platform that serves as the definitive alternative to the influx of unlicensed TVs prevalent in the grey market. Since its inception in 2019, Coolita has experienced unprecedented growth, emerging as the fastest-growing licensed solution in India. As the exclusive partner of Coolita OS, we are dedicated to delivering a reliable and authorized platform that ensures quality and authenticity in the Indian television landscape.
Quality is one of the key differentiators for manufacturing organizations. Tell us how the Veira Group is leveraging the power of quality to stay competitive in the market?
Absolutely, quality remains the cornerstone of our offerings, ensuring our customers not only stay with us but also stay happy. Our commitment to excellence drives us to continually enhance our processes with evolving technical expertise, consistently raising the standards. In line with this commitment, we’re excited to announce our upcoming fully automatic LED manufacturing line, a testament to our relentless pursuit of higher quality standards and innovation in our industry
At present, what is the annual turnover of the Veira Group and what kind of growth targets have you set for the next two years?
As we approach the year’s end, we are on track to reach a remarkable topline figure of ₹1500 crore. This achievement reflects our steadfast commitment and the growing success of our endeavours. Looking ahead, our ambitious vision for the next two years sets the bar even higher as we aim to surpass the ₹5000 crore mark.
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