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  • Writer's pictureMAJ Medias

Binatone plans to sell 20% stake in Internet of things unit Hubble

NEW DELHI: Hong Kong-based consumer electronics and personal care products company Binatone plans to sell 20% equity in its Internet of things unit, Hubble. The company has also drawn plans to invest $35 million (about Rs 235 crore) in setting up a second factory in India to produce modems, routers and CCTV cameras among other electronic equipment.

“We are looking to give up 20%, for a total valuation of Hubble at $1 billion (Rs 6,700 crore),” said Dino Lalvani, chairman of Binatone Group. Lalvani said Hubble has been entirely funded by Binatone, which has invested $100 million (Rs 671 crore) in the unit till date.

Binatone, which aims to close the current fiscal year with $1billion in revenue, is the exclusive global licensee for design and manufacture of Motorola Mobility accessories such as wireless speakers, headsets, child and pet monitoring products. Hubble forms the cloud and software backbone for these products, providing direct connectivity to smartphones.

Lalvani said Hubble is moving its headquarters to Bengaluru from the US, where it has a team of 300 people.

Binatone provides modems and wifi routers to telecom companies such as Bharti Airtel and Tata Teleservices. The company has already invested $15 million in a factory in Gurgaon.

Spread over 40,000 square feet, the factory will produce 500,000 units of modems, routers, landline phones and CCTV cameras a month. It is set open later this month.

With the government offering incentives for making these products in India, Binatone plans to open another, bigger factory.

“We will set up a second plant with $35 million investment and we are evaluating SEZs including Bhiwadi in Rajasthan for locating the plant,” Lalvani said. “We will finalise in the next 30-45 days.”

Currently, Binatone imports all this equipment from China. It will now change its model to not only make in-house but also do warehouse and logistics, functions that were earlier outsourced.

It is studying local manufacturing incentives proposed in the Budget, where excise duty on components and parts for making routers, broadband modems, set top boxes, digital video recorders and CCTV cameras has been totally exempted.

Binatone offers baby and pet cameras, sensors, trackers and surveillance products under the Motorola brand. It plans to launch these products in India in May and to manufacture some of them at the second factory.

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