Bhagwati Products in talks with top IT hardware brands for manufacturing, to invest additional Rs 10 cr

India’s leading electronics contract manufacturer Bhagwati Products, which is the first domestic company to benefit from the government’s Production-Linked Incentive (PLI) Scheme for IT hardware, is in talks with the top four IT hardware brands in the country. 

Under the PLI scheme, Bhagwati is currently manufacturing laptops and tablets for Acer and Realme, along with a few smaller brands. Bhagwati qualified incremental sales thresholds and investment criteria, as per the scheme's requirements and bagged Rs 5.30 crore disbursement by the Ministry of Electronics and Information Technology for 2021-22.

The company has been manufacturing IT hardware at its state-of-the-art manufacturing facilities in India - Bhiwadi (Rajasthan) in the North and Hyderabad (Telangana) in the South since 2020. It has a current annual manufacturing capacity of 10 million smartphones and 1.2 million IT products. 

Rajesh Agarwal, Director of Bhagwati Products Ltd., told Business Today, “To further boost the domestic market and take Indian manufacturing on the global map, we are also in talks with other bigger players in the IT hardware sector. Currently, Acer is one of the biggest brands in this category, and there are other smaller brands as well.”

While Agarwal did not disclose the volumes manufactured under the scheme, he stated that of the total production, 75 per cent was for domestic consumption, and 25 per cent was for export. As per the requirement under the scheme for domestic players, Bhagwati has already invested Rs 20 crore in IT hardware and plans to invest another Rs 10 crore in this segment in the coming months.

“Having already invested heavily in expanding the manufacturing facility, we are adding more SMT Lines to cater to the growing demand both from domestic & international brands. We are scaling up the capacities of these facilities, continually working with local partners to expand the ecosystem and generate employment opportunities in the country to support the collective vision of AtmaNirbhar Bharat,” added Agarwal.

Other than IT hardware, Bhagwati Products is amongst the approved domestic companies under the existing PLI schemes for smartphones and air-conditioner components. It is expanding the manufacturing facility and adding more SMT Lines to cater to the growing demand, both from domestic and international brands. Besides smartphones, IT hardware, and air conditioning components, Bhagwati has a manufacturing capacity of 1 million LED TVs per month.

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