According to reports, 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.

The first of the three factories will be coming up near Bengaluru, followed by one each in Tamil Nadu and Andhra Pradesh, according to reports.

The factory will have a fully automated production line to assemble, test, and package desktop and laptop computers, energy meters, and remote controls.

With this expansion, Smile Electronics will expand its footprint to four plants, including its existing facility in Bengaluru.

Zetwerk has four factories in northern India to meet the demand for cell phones, telecommunications equipment, smart meters, television and display equipment, and wearables and hearables.

According to reports, through this alliance, the two companies will operate throughout India in the design and manufacture of electronic systems.

Smile Electronics has an annual turnover of Rs. 500-600 crores, while Zetwork, which operates in the consumer electronics, renewable energy, and aerospace sectors, has a turnover of Rs. 11,500 crores for 2022-23.

In April, Zetwerk announced that it would invest Rs. 1,000 crore to expand its electronics manufacturing capabilities. The company said it aims to become a leading design manufacturer and electronics manufacturing service provider, with a focus on IT hardware, televisions, cell phones, and wearable/hearable devices.

The company has plans to expand rapidly in this area and has hired Josh Farger to head its electronics division. Mr. Farger was previously the head of Bharat FIH, an electronics manufacturing Services Company.

Zetwerk has also entered the television and display equipment business, operating one of the largest television manufacturing facilities in northern India, with an annual production capacity of 2.4 million units, catering to domestic and international brands.