Indian Bhagwati Products, the EMS arm of Micromax, is teaming up with their Chinese partner Huaqin to set up two mega factories in Greater Noida. With this move, they plan to ramp up the smartphone, tablet, IoT, and component manufacturing to make India a global export hub.
Bhagwati Products, the electronics manufacturing services (EMS) arm of Micromax, has declared a significant expansion with the plan of setting up two new mega factories in Greater Noida. This decision is made in the context of their association with the Chinese ODM giant Huaqin, which aims to empower India as the hub for the whole world in the area of electronics manufacturing.
Not only will the new factories produce smart devices, PCs, servers, and IoT units, but they will also make the necessary electronic components such as displays and mechanics. This is a move to go further into the local production of the components that add more value instead of only assembling contracts.
We are establishing a new factory for mobiles, tablets, and IoT not far from here. We are expecting the factory to be functional within six months. The factory of Vivo that we took over has been enlarged with capacity rising from 1 million to 4.5 million units.”
Rahul Sharma, Co-founder of Bhagwati Products
By his account, the third Greater Noida facility could become the largest factory of its kind in India, signaling the company’s ambitious expansion plans. The growth is being supported by the company’s own cash flow, however, the precise investment amount remains undisclosed.
Strengthening India’s Export Position
The manufacturing of Micromax Bhagwati Products has already started shipping Motorola tablets under the Lenovo brand to the United States. This is a significant move for Huaqin to set up an export hub in India besides their plant in China. Huaqin is also opting for a location in Mexico from where it will export to all countries except China but India is, by far, their top choice for the global strategy.
The production of metal will not only be sufficient to meet the growing demand of brands like Oppo, Vivo, OnePlus, Realme, iQOO, Motorola but also Acer and Lenovo.
Push into Component Manufacturing
The point of the expansion which calls for the most attention is the component manufacturing entry. Bhagwati revealed that the company is talking with Chinese partners for joint ventures in the display and mechanics segments. The government policy under India’s Electronics Component Manufacturing Scheme (ECMS) which results in the provision of incentives for component-level production is the one being sought for approval.
Rahul Sharma stressed that the Chinese remain the overarching hub of the global supply chain for electronics, and India’s teaming up with Chinese firms will bring the competitiveness to India higher.
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Financial Growth and Workforce Expansion of Micromax Bhagwati
The ambitious deployment of the company is supported by a very rapid financial growth. Bhagwati envisions the turnover to hit INR 15,000 crore (approx. USD 1.8 billion) for FY26, which is more than twice the amount of last year INR 6,200 crore (USD 744 million). Bhagwati is presently shipping 2 million smartphones every month which makes the trend of the company’s growth in which they are producing smartphones for brands like Vivo and Oppo is contributing to their revenue.
Correspondingly, the workers at the Greater Noida facility had a 10x increase, and their number has also shot up, from 1,000 to 10,200 employees in a year. The organization will be investing 10 million dollars for the upskilling programs which are uniquely designed with Huaqin under a big program named “Knowledge Transfer and Upskilling Program.”
Sharma remarked that Bhagwati is doing well to meet the production target of 25 million units by 2025 covering smartphones, tablets, wearables, and storage devices.
Future Outlook
Bhagwati Products set a goal of growing their presence into making high-end devices and have already started to boost their R&D and design capabilities. Possibly, through Huaqin, it will also be producing for big names like Amazon, Meta, Samsung, Xiaomi, and HP, which means India will be taking a deeper plunge into the global value chain.
This move is a clear manifestation of the fact that India is an increasingly important location in international electronics manufacturing where Greater Noida is becoming a strategic hub.
FAQ’s
Q1: What products will Micromax Bhagwati’s new factories produce?
Micromax’s Bhagwati’s new factories will assemble smartphones and tablets, as well as servers, IoT devices, and finally, manufacture displays and mechanical components.
Q2: How is Micromax Bhagwati funding the expansion?
Micromax Bhawati is using only its own resources to make the expansion, which is completely self-funded through internal accruals. There are no plans to raise external capital.
Q3: Which markets will Micromax Bhagwati target with exports?
At present, Micromax’s Bhagwati has been exporting Motorola tablets to the US and is looking forward to penetrating more overseas markets with the help of its partnership with Huaqin.
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