Zetwerk, Smile Electronics To Establish IT Hardware Factories Across India

Contract manufacturing unicorn Zetwerk has partnered with Bengaluru-based Smile Electronics to set up three advanced factories dedicated to IT hardware production in India, according to media sources. The first factory is expected to be established near Bengaluru, with subsequent facilities planned in Tamil Nadu and Andhra Pradesh. These factories will feature fully automated production lines for assembling, testing, and packing desktops, laptops, energy meters, and remote controls.

This expansion will allow Smile Electronics to grow its operations to four factories, adding to its existing facility in Bengaluru. Zetwerk, which currently operates four factories in northern India catering to the demand for mobile phones, telecom devices, smart meters, and other electronics, will benefit from a broader manufacturing footprint across the country.

The partnership is set to enhance both companies' presence in the electronics system design and manufacturing sector, with a combined production capacity of approximately 1.8 million units annually. Smile Electronics, which generates annual revenues of Rs 500 to 600 crore, is also a recipient of the government's IT hardware Production Linked Incentive schemes 1.0 and 2.0.

In April, Zetwerk revealed its plans to invest Rs 1,000 crore in expanding its electronics manufacturing capabilities, with a focus on becoming a leading provider of original design manufacturing and electronics manufacturing services. The company, which posted revenues of Rs 11,500 crore for 2022-23, has recently entered the television and display devices market by commissioning one of northern India’s largest TV manufacturing facilities, with an annual production capacity of 2.4 million units.