Titan Company Ltd., a joint venture between The Tata Group and TIDCO, is looking to invest in India’s wearables segment. The company is said to be in preliminary talks to acquire a majority stake in Noise, the Gurugram-based consumer electronics brand.
The Tata Group-led company is looking to increase its presence in the booming wearables market with this acquisition. Nexxbase Marketing Pvt. Noise, owned by Ltd, will be valued at around Rs 700-800 crore as a result of the transaction. According to a Mint report, the valuation is determined by doubling Noise’s revenue by Rs 400 crore, which is common among companies in the wearables market.
Noise, founded in 2014 by Amit Khatri and Gaurav Khatri, started out selling smartphone cases before exploring smart wearables and wireless headphones vertically. According to the International Data Corporation (IDC) report, the smart clothing market in India grew by 93.8% year-on-year (YoY) in the fiscal third quarter of FY21 (July-September), shipping 23.8 million units. Smartwatches remain the fastest growing category, with 4.3 million shipments in the third quarter, while wristbands saw their ninth consecutive quarter of annual decline.
The report also suggests that local brands have taken more than two-thirds of the smartwatch market thanks to aggressive pricing and marketing spend on digital channels. Noise managed to maintain its market dominance for the sixth consecutive quarter in the third quarter, with a market share of 26%, followed by boAt with a market share of 23.1%.
Shares of Titan Company jumped more than 2% today after a report suggested the company was in talks to buy a majority stake in indigenous wearables maker Noise. Shares of Titan climbed after a four-day decline. At the start of trading, large-cap stocks rose 1.91% to 2,415 rupees per share. The shares were trading above the 200-day moving average, but below the 5-day, 20-day, 50-day and 100-day moving averages. The share has risen 63% in one year but has fallen 5.42% since the start of the current year.
Tata Group in 2020 acquired Hyderabad-based smart device maker Hug Innovations Inc to focus on the booming wearables market. Noise, a Gurugram-based company, previously appointed IndigoEdge to help them explore new financial investors. According to a report, it was aiming to raise more than Rs 100 crore in 2020 at a valuation of nearly Rs 500 crore.
boAt, which is eyeing a Rs 2,000 crore IPO, recently took over KaHa Pte Ltd. (Cove IoT), based in Singapore. Imagine Marketing, the parent company of boAt, has announced that it will acquire Singapore-based KaHa Pte Ltd. BoAt seeks to bolster its wearable devices with KaHa’s concept, design, algorithm development, electronic firmware, Android and iOS apps, among other features and capabilities, as a result of this transaction.