Zetwerk and Smile in deal To Establish IT hardware factories in India

Contract manufacturing unicorn Zetwerk has entered into a strategic partnership with Bengaluru-based electronics manufacturing services company Smile Electronics to launch three state-of-the-art factories for IT hardware production in India, said people familiar with the development.

“The first of the three factories will be coming up near Bengaluru, followed by one each in Tamil Nadu and Andhra Pradesh,” said one of the persons, who did not wish to be identified.

The factory will have fully automated production lines for assembling, testing and packing of desktops, laptops, energy meters and remote controls, the person added. The expansion will help Smile Electronics expand its footprint to four factories, including its existing facility in Bengaluru.

Zetwerk has four factories in northern India to cater to demand for mobile phones, telecom devices, smart meters, television and display devices, and hearables and wearables. The person said the partnership will ensure the companies have a pan-India presence for manufacturing in electronics system design and manufacturing, the person said.

Smile Electronics clocks revenue of Rs 500-600 crore per year and Zetwerk, which has business interests in consumer electronics, renewables and aerospace, posted revenue of Rs 11,500 crore for 2022-23. Smile Electronics is also a recipient of the government’s IT hardware Production Linked Incentive schemes 1.0 and 2.0.