Micromax arm Bhagwati setting up two new mega factories in Greater Noida; Chinese electronics component JVs soon: Rahul Sharma

Rahul Sharma,Bhagwati

Bhagwati Products, the EMS arm of Micromax, is doubling down on its manufacturing ambitions with plans to set up two new factories in Greater Noida as part of a sweeping expansion strategy under its joint venture with Chinese ODM giant Huaqin.

The new facilities will not only assemble smartphones, tablets, servers and IoT devices but also manufacture key electronics components such as displays and mechanics, signalling a deeper shift into component-level value addition.

“We are setting up a new factory nearby for mobiles, tablets, and IoT. It is expected to be operational within six months,” Rahul Sharma, Co-founder of Bhagwati Products, told Moneycontrol. “The existing factory that we took over from Vivo has already been expanded, with capacity going up from 1 million to 4.5 million units.”

The third factory in Greater Noida, he said, will probably be the country’s largest factory. “We are in a major expansion mode."

Sharma said the expansion is being funded through internal accruals. He did not share investment details.

The expanded capacity will cater to leading smartphone and tablet brands, including Oppo, Vivo, OnePlus, Realme, iQOO, Motorola, Acer, and Lenovo, while also setting up lines for other brands that work with Bhagwati’s partner Huaqin.

Bhagwati has already begun exporting Lenovo-owned Motorola tablets to the US market. "India will be an export hub for Bhagwati with Huaqin as a partner. Outside China, they are investing in Mexico, but India is a significant bet for them.”

Push into component manufacturing

On the components front, Sharma confirmed the plan for joint ventures with Chinese companies under Bhagwati Products Limited. “We will soon announce joint ventures and our investment plan,” he said, adding that the company is hopeful of swift government Press Note 3 approvals.

Sharma said that India cannot ignore China’s role in the global supply chain, as most of the world's electronics manufacturing is based in China.

Bhagwati is also applying for approvals for displays and mechanics categories under the government’s Electronics Component Manufacturing Scheme (ECMS) to access incentives for component-level production.

Revenue growth and hiring scale-up

The aggressive expansion comes on the back of rapid financial growth. Sharma said Bhagwati is on track to achieve Rs 15,000 crore in revenue in FY26, more than doubling from Rs 6,200 crore in the last fiscal, led by strong scale-up in smartphones, tablets, TWS devices, and storage solutions.

A significant portion of this growth is being driven by smartphone manufacturing for Vivo and Oppo, with Bhagwati currently clocking a run rate of 2 million smartphones shipped per month.
The company has also expanded its workforce sharply, growing from 1,000 to 10,200 employees in under a year at the Greater Noida facility. Sharma said Bhagwati will invest $10 million in upskilling and hiring initiatives, with a structured “Knowledge Transfer and Upskilling Program” developed in partnership with Huaqin.

“We are on track to achieve their 25 million production target by the end of 2025, spanning smartphones, tablets, wearables, and storage devices,” he said.

Sharma added that Bhagwati aims to tap new handset and wearable brands in the coming months while adding more product categories through its JV with Huaqin.

“Through Huaqin, we are looking to make products for their other global customers who may be looking to start local production…Huaqin globally works with Amazon, Meta, Samsung, Xiaomi, HP, among others,” he said.

He also noted that the company is preparing to move beyond contract assembly. “Bhagwati wants to cater to the premium segment of the market through manufacturing and has already started initial steps towards R&D and design via the ODM business.”