Audio Firm Bose Weighing Local Manufacturing

US-based Bose Corporation would like to take up manufacturing of its fabled audio products in India if the market for its products develops well over the next few years.

"We would like to (get into manufacturing in India). But we first have to see how the market for our products develops here," Bose Corporation president Sherwin Greenblatt told Business Standard after the launch of the company's audio systems in India yesterday (October 12).

The products have been launched through Bose Corporation India Private Ltd, a wholly-owned subsidiary, with the opening of the first company-owned showroom outside the United States in New Delhi's Connaught Place. Greenblatt pointed out that volumes are crucial to justify manufacturing of consumer electronics items.

 

"We are a privately held company and there is no one to pour money into our operations. Any investment has to be funded through the funds generated by us. A large part of the money we make is re-invested into the company to attain growth. In short, growth comes from our own ability to grow," he said. Greenblatt however expressed confidence that the company would be able to attain the volumes required for further business development.

Bose is also willing to bide its time while the market for its products develops in India. "It should be very big business in 10-15 years," said Greenblatt.

The Indian consumers, according to him, would eventually want the same quality of products available elsewhere in the world. Bose, whose products now available in India fall in the range of Rs 69,900- Rs 1,99,900 (plus 6 per cent tax), would also like to introduce its low-price products in India if the regulations are changed to allow their import.

"We would like to bring our low-end products to India, but we are not allowed to import them now. We are hoping that the government will change the regulations to allow their import," said Greenblatt. Bose also launched its `Auditioner' audio demonstration system yesterday, which allows people to listen to a sound system before it is installed.

Bose Corp had first set shop in India in 1995 by forming the Indian subsidiary for selling proprietary Bose technology for design of sound systems in public places and had been selling to only institutions so far.

The company's foray into home audio products arena in India comes close on the heels of Japanese giants Sony and Aiwa announcing the launch of their new mini and midi hi-fi audio product launches.

However, the price tags on Bose stereos as well as the home theatre systems are "far higher, absolutely premium and thus in no comparison with existing brands in India", says the firm.