Business Standard: September, 2015
Bengaluru: Lax, a Chinese pro audio systems major is entering into India through a tie-up with Pixel Display India Pvt Ltd and plans to invest about $10 million in R&D and manufacturing of country-specific products in next three years.
The company is one of the largest manufacturers of pro audio products, which are designed and developed to address mass audience in music and conference halls, airports, indoor and outdoor public venues, among others.
The company has today entered into a distribution tie-up with Chennai-based Pixel Display India, which has a manufacturing facility for digital display equipment. It would start studying the market and the specific requirements in the market and also set up an R&D centre in India in an year.
It would also develop a manufacturing facility for pro audio systems in the Pixel Diplay's audio manufacturing facility in the following two years, said Andy Wang, Chairman of Guangzhou Ruifeng Audio Technology Incorporation, which manufactures Lax products.
"In Phase I, we will sell the products through Pixel Display in India. In Phase II, we will set up an R&D centre and study the market. We will then start designing and manufacturing in India to serve both the domestic and the exports market," he said. He said that in Phase II, the company would invest around $10 million to set up the facility. The company has an annual turnover of $150 million.
Pixel, which will be distributing the products along with its display systems, has invested over $3 million and set up a manufacturing unit for CKD(Completely-knocked-Down) build of equipment at Ambattur, Chennai.
Pixel will further invest around $5 million into the facility, which currently has a capacity to manufacture 15,000 square meter of LED panels, in near future, said Kumaran K, managing director of Pixel Display India (P) Ltd. He added that the company would look at investment from Private Equity or strategic investors to fund the the expansion plans.
As per the agreement, Lax will support Pixel for its projects both financially and technically. Lax provided audio solutions for The 2008 Olympics at The Nest Stadium, Beijing showcasing the world their audio quality and technical capability.
Lax, a major pro audio manufacturer in China, has a major share in the events and large stadia market in China, it claims.