By providing end-to-end solutions, this ODM is helping India become Atmanirbhar
With the capacity to produce 10,000 televisions per day, Veira Group caters to 60 brands across sectors.
Monday February 20, 2023,
6 min Read
India's manufacturing sector is undergoing a transition today as the government's push for domestic production and restrictions on imports, like television has marked a turning point for the industry.
For Delhi-based, this push has improved business prospects. Founded in 1975 by Virendra Maini, the company started off as a maker of cassette players. In 1995 it started manufacturing VCD players followed by DVD players in 1998.
Back then, companies such as Philips, LG, Samsung, and Sony were the main market drivers in India.
“We were one of the few DVD player producers at the time to import the necessary components and manufacture the products here,” says Sharan Maini, Director, Veira Group.
From being a DVD player manufacturer, the company expanded its product line to include CRT televisions, washing machines, and air coolers. It entered television manufacturing in 2000.
According to Sharan Maini, who serves as the Managing Director for operations, production of LED televisions started in 2010, and presently, "the company is one of the leading producers of LED TVs in the country."
Veira has invested in R&D facilities, service centers, manufacturing, and testing units, to become an ODM (Original Design Manufacturers) for smart televisions.
It has two manufacturing plants in Noida. Its service centers are present all across the country. The company employs over 1,000 people, operates 15 subsidiary offices, and has 120 service partners across India.
Currently, the company has the ability to produce 10,000 televisions per day and two million televisions a year. The new production facility, which began in 2022, is expected to contribute to the growing numbers. Earlier the production capacity was 2,000 to 2,500 units per day. The newly begun Phase 2 plant currently has 4,00,000 square feet dedicated to LED TV production.
According to Sharan, the company has shown a YoY growth of 100% in revenue. In the current fiscal year, it has generated a revenue of Rs 850 crore and projects finishing the year with Rs 1,000 crore as revenue.
Towards becoming ‘Atmanirbhar’
To meet the needs of the country and spur demand, the government is relying on manufacturers like Veira. As television imports into India are banned since 2020, Chinese products do not currently serve the television market.
“LED TVs that are there in the market are all made in India,” says Sharan. Veira is trying to make sure that the complete integration of product manufacturing happens in the country. Apart from semiconductors, all other equipment like plastic cabinets, PCBs (Printed Circuit Board), and LED bars, are all designed and manufactured in their facilities.
“We are getting semiconductors or chips from international locations like Taiwan, Korea, and China. To be complete exporters, not just to the Southeast Asian market but to the world, semiconductor fabs need to be established in the country,” says Sharan.
He further adds that the first stage in television manufacturing is completed, and now fast development and regular investments are needed to take India to the global market.
“The movement is happening. Government is pushing towards semiconductor fabs,” he adds. With economic sanctions on China, many International companies like Google, and Amazon, are integrating their software with Indian companies. This is helping Indian companies to manufacture for the world.
Veira currently focuses on television manufacturing, which contributes 85% of its revenue. However, It is planning to increase the manufacturing of washing machines as the company sees a huge growth potential in this segment.
“India still relies on China for fully automatic washing machines. We will soon be starting a new line of washing machines that will enhance the capacity of India to replace Chinese products,” says Sharan.
Differentiating in a growing market
According to the most recent data from Counterpoint's Made in India service, ‘Made in India’ TV shipments increased 33% QoQ in Q3 2022 (July-September) to reach over five million units. Dixon, Radiant, and Bhagwati were the top three manufacturers.
“When other companies were working on the infrastructure for assemblies, we were working on the infrastructure for design,” says Sharan. Veira is now designing, developing, and manufacturing the products and providing end-to-end solutions for its clients.
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“Our growth story might be slow but being a complete solution provider we are catering to the brands who wouldn’t want to work in tandem with two companies or two countries, for manufacturing and assembly,” he adds.
The company currently caters to around 60 brands across sectors, including 42 for LED TVs, 16 for washing machines, and 13 for air coolers. Croma, Zebronics, Haier, Infinix, Impex, and Hitachi, are some of its clients.
Challenges along the way
Sharan says that the COVID-19 pandemic was a challenge for the company as the demand became zero at one point, but it brought many opportunities for the company. The staff was working from home on designing and other things. The plan to open its second plant also happened during the pandemic.
COVID-19 also gave the company the opportunity to integrate with many international software companies as everything had shifted online. It tied up with around 25 software companies during the pandemic. The ODM today has software licences for Web OS 2.0, Coolita Neo, Fire, and Android 11, among others.
The path ahead
“We are currently a factory for consumer durables in India. We want to become a factory for consumer durables, appliances, and smart products, for the country and the world,” says Sharan.
The ODM plans to enter the wearables segment as Sharan observes that organised ODMs are missing in the country and there is still heavy reliance on China. They wish to fill the gap. “Anything that is smart is an opportunity for us,” he adds.
They also plan to focus more on the air coolers category and enter the JMG (Juicer Mixer Grinder) category.
The company plans to export to more countries. Currently, it exports to Southeast Asian countries like Nepal, Sri Lanka, and Bangladesh.
The company is also planning to set up a new seven-acre plant in Uttar Pradesh dedicated to manufacturing other products like washing machines.
For the coming financial year, Veira’s revenue target is Rs 2000 crore.
“As an ODM, when a brand grows we feel we have grown,” says Sharan.
Edited by Affirunisa Kankudti