Eyeing to launch three IT hardware manufacturing facilities in India, contract manufacturing giant Zetwerk has joined hands with Bengaluru’s Smile Electronics.
According to reports, contract manufacturing giant Zetwerk has entered a joint venture with Bengaluru’s Smile Electronics to establish three advanced IT hardware production facilities in India. However, neither company has officially announced this partnership.
According to a source in the Economic Times, the initial factory will be built near Bengaluru, with subsequent facilities planned for Tamil Nadu and Andhra Pradesh. Through this collaboration, Smile Electronics aims to expand its total number of factories to four, including the one currently operating in Bengaluru.
It was further reported that the facility will feature fully automated production lines for assembling, testing, and packaging desktops, laptops, energy meters, and remote controls. Their production capacity is expected to be approximately 1.8 million units per year.
Zetwerk operates four factories in northern India to meet the demand for mobile phones, telecom devices, smart meters, televisions and display equipment, as well as hearables and wearables. Reports predict that the partnership will provide the company with a nationwide presence in electronics system design and manufacturing.
Smile Electronics generates annual revenue of Rs 5-6 billion, while Zetwerk, which operates in consumer electronics, renewables, and aerospace, achieved Rs 115 billion in revenue for 2022-23. Smile Electronics is also a beneficiary of the government’s IT hardware production-linked incentive schemes.
In April, Zetwerk set aside Rs 10 billion to expand its electronics manufacturing, targeting IT hardware, TVs, mobile phones, and wearables. Josh Foulger, formerly with Foxconn’s Indian arm and key in expanding Nokia and Foxconn’s India operations, is supposed to lead this initiative. Besides, it has launched a TV manufacturing facility in northern India, capable of producing 2.4 million units annually for domestic and international brands.
