VMI's in-house brand wants to offer innovative audio and smart accessories at affordable prices
Skyball, Videomax International’s homegrown brand, recently unveiled a budget-friendly line of home audio products starting at Rs 2,999.
In India’s increasingly crowded consumer electronics market, new brands differentiate themselves through various strategies.
“The market is saturated with numerous renowned brands that have already established a significant consumer base. Breaking into this competitive landscape can undoubtedly be challenging,” Sandeep Gupta, Managing Director, VMI and Skyball, tells SMBStory.
According to Business Wire, the Indian consumer electronics market is expected to reach $124.94 billion by 2030, expanding at a CAGR of 6.5% between 2022-2030.
Noida-based (VMI)—an electronic manufacturing services (EMS) supplier for original equipment manufacturers (OEMs) of consumer electronics—launched Skyball in May 2023.
The company’s decision to launch Skyball as its own brand was driven by the potential of the Indian market and the demand for innovative products. It aims to tap into this demand, offering customers cutting-edge technology at affordable prices.
VMI's homegrown brand will offer a range of audio and smart accessory devices, including portable music bars, party speakers, and tower music systems, currently available on Amazon. The audio devices range between Rs 2,999 and Rs 12,999.
“Skyball stands out because of VMI’s years of experience in manufacturing, sourcing, product development, and sales,” says Gupta. “We plan to position Skyball as a premium brand with affordable prices.” Its recently launched home audio products start at Rs 2,999.
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Over the next three years, VMI aims to invest Rs 100 crore in the expansion of Skyball to achieve a turnover of Rs 500 crore within the timeframe. It plans to focus on competitive pricing, strategic marketing, innovative product offerings, and prompt customer service to build the brand.
Further, VMI plans to collaborate with two brand ambassadors for its audio and fitness categories to enhance its visibility and credibility in the market.
According to Gupta, Skyball will focus on developing its online presence in the first quarter by forming partnerships with Amazon and other ecommerce companies. In the following quarter, it will expand its offline presence and strengthen its distribution and dealer network in Tier II and III cities.
The company has collaborated with 500 service centres in more than 450 cities to provide prompt after-sales service. “Skyball will help us tap into the market when there is a strong appetite for new and innovative offerings,” says Gupta.
How it all started
VMI’s roots can be traced back to the late 70s, when Gupta’s father, Vinod Kumar Aggarwal, ran an electronics repair shop in Delhi, where he honed his skills and developed a deeper understanding of consumer electronics for four years.
His vision for VMI began to take shape during a visit to Singapore. He saw an opportunity to import radio and video cassette recorder (VCR) parts to India, which he skillfully assembled in his own home basement and formally launched VMI in 1980.
The company collaborates with domestic and international brands like Elista, iBall, and Beetel to provide products, including televisions, monitors, computer cases, washing machines, air conditioners, speakers, and IT peripherals.
In 2003, Gupta joined forces with his father shortly after completing his Bachelor of Commerce degree from Delhi University. The duo also started a factory in Roorkee in 2004 in pursuit to expand the company.
“We started manufacturing FTA (free-to-air) dishes and DVD players,” says Gupta. In 2005, VMI started importing from China to adapt to global trade. “It diversified the portfolio with induction cookers, monitors, microwaves, refrigerators, and press irons,” he adds.
In 2020, VMI also started manufacturing power banks and Bluetooth speakers, and Gupta got the company registered as a Pvt. Ltd. Firm in the following year.
At present, VMI operates from its integrated production facilities in Uttarakhand and Greater Noida, with an in-house product testing facility and R&D setup. The combined factory area of the Noida and Roorkee plant is 120,000 sq. ft.
“These facilities serve as the backbone of the company's operations, enabling efficient production and ensuring the delivery of high-quality products,” he adds.
In FY22, VMI registered a turnover of Rs 50 crore, and its revenue reached Rs 80 crore in FY23.
VMI is targeting a revenue of Rs 150 crore in FY24 with its manufacturing services and Rs 100 crore with Skyball. 40% of Skyball's revenue is expected to come from the audio category and 60% from the smart accessories category.
In June 2023, Skyball will enter the smartwatch market, initially concentrating on online platforms before moving into offline stores.
The brand aims to extend its reach to international markets, with plans to launch operations in Nepal and the UAE by next year.
Edited by Suman Singh
