Ekkaa Electronics, an original design manufacturer of LED TVs, is adding a new manufacturing unit in Noida with an investment of ₹1,000 crore over a period of five years. In FY22, it generated an even turnover of ₹425–450 crore.
Sagar Gupta, Founder, Ekkaa Electronics, told Businessline That the company will extend its product line to include washing machines, multimedia speakers, TWS (true wireless stereo), and smartwatches, and launch an export arm as well.
“Every six months, around ₹100 crore will be added towards R&D, machinery, and more. Since we are not only increasing production capacity but also expanding product portfolio, we would be constantly infusing the required funds,” said Gupta.
The company has already invested close to ₹200 crore towards backward integration and product diversification. It expects to start operations in May. The funds for the expansion will be raised through private equity, he said.
The high-turnover business has more room for margins, he said. “We keep our margins to a minimum to ensure that brands are able to go aggressively into the market. Currently, as a result of economies of scale due to better purchasing power, we are able to generate such revenues. We expect to close FY23 at ₹600 crore,” he added.
The company currently has a manufacturing capacity of 1.5 lakh TVs per month, and is working with 100 Indian brands. “With the new plant we will have a monthly capacity to produce one million LED TVs, and we plan to produce equipment such as power presses and backlighting panels for LED TV.”
Ekkaa will start exporting to markets including Nepal, Bangladesh, and Sri Lanka. “These markets are in the South Pacific region and will be much easier to capture. As part of our phase 2, we will be exporting to Dubai and African regions,” he said.
The world has seen a major shift towards OTT platforms, and with everything connected to the internet, four years down the line, the company expects a major demand for either interactive display or commercial display.
“Brands want an adaptive display that can interact with the customer, and display multiple ads at the same time. All over the world, there is a shift toward interactive and outdoor display. However, this has yet to come to India and will be a big market for us in the next five years. With our existing equipment and the planned new advancement in our facility, we will be able to manufacture them,” Gupta said.
Currently, the company employs around 1,000 people and plans to add 2,500-3,000 within a year. Ekkaa Electronics was established in 2019, and its manufacturing facility is in Sonipat, Haryana.