Bhagwati Products, the electronics manufacturing arm associated with Micromax, has received approval from the Ministry of Electronics and Information Technology (MeitY) for two projects involving a combined investment of ₹1,015 crore. The company plans to invest ₹450 crore in display manufacturing and another ₹565 crore in precision moulding as it expands deeper into electronics component manufacturing.
The approvals have been granted under the Electronics Component Manufacturing Scheme (ECMS), with production at both projects expected to begin this year. The expansion marks a strategic shift for Bhagwati from large-scale electronics assembly toward greater vertical integration, with the company aiming to build capabilities across several critical components used in smartphones and other electronic devices.
Bhagwati Gets Approval for Two Major Projects
Bhagwati Products has received MeitY approval for two separate projects with a combined investment of ₹1,015 crore.
The first project involves ₹450 crore of investment in display manufacturing, while the second involves ₹565 crore for precision moulding.
The company plans to start production at both projects this year, with the display manufacturing facility expected to begin operations within a quarter.
| Project | Investment | Location | Key Focus |
|---|---|---|---|
| Display manufacturing | ₹450 crore | Bawal, Haryana | Mobile phone displays |
| Precision moulding | ₹565 crore | Greater Noida | Electronics components |
| Total | ₹1,015 crore | Haryana and Uttar Pradesh | Component manufacturing |
The projects are expected to increase Bhagwati’s manufacturing capabilities and create additional employment as the company expands its electronics component portfolio.
₹450 Crore Display Manufacturing Project
The display manufacturing project will be undertaken through TXD India Technology, in which Bhagwati Products recently acquired a 51% stake.
The acquisition has already received approval under Press Note 3, which governs certain investments from countries sharing a land border with India.
The display facility is located in Bawal, Rewari, Haryana, and already has an operating manufacturing setup.
Bhagwati plans to use the existing facility to manufacture mobile phone displays, initially targeting a capacity of 1.5 million displays per month.
The company intends to scale that capacity to between 3 million and 4 million displays per month over time.
Display Manufacturing Roadmap
Existing TXD India facility
↓
Bawal, Rewari, Haryana
↓
Initial capacity
1.5 million displays per month
↓
Capacity expansion
3–4 million displays per month
↓
Future expansion
Automotive displays
The move could allow Bhagwati to capture a larger portion of the value generated by smartphone manufacturing in India.
Production Could Start Within a Quarter
Bhagwati co-founder Rahul Sharma said the company plans to begin display manufacturing within a quarter.
The existing Bawal facility already has workers and infrastructure, which could allow the company to accelerate the start of production following the regulatory approval.
The company also plans to immediately begin expanding capacity at the facility.
This relatively short production timeline is significant because display manufacturing is a critical component of the electronics supply chain and India remains dependent on imports for several advanced electronic components.
Company Plans to Enter Automotive Displays
Bhagwati’s display ambitions extend beyond smartphones.
After scaling its mobile-phone display production, the company plans to explore automotive displays.
Automotive displays are increasingly used in infotainment systems, digital instrument clusters and other vehicle interfaces.
The shift could give Bhagwati access to a larger and more diversified market beyond smartphones.
However, automotive components generally require stringent quality, reliability and certification standards, making the transition more complex than conventional consumer-electronics manufacturing.
₹565 Crore Precision Moulding Project
The second approved project involves an investment of ₹565 crore in precision moulding.
Bhagwati plans to establish the capability in-house at its Greater Noida facility.
Precision moulding is an important part of electronics manufacturing because it is used to produce highly accurate plastic and other components required for electronic devices.
The move will allow Bhagwati to have greater control over an important part of its manufacturing process.
It could also reduce reliance on external suppliers as the company expands production.
Why Precision Moulding Matters
Modern electronic devices require components manufactured to tight specifications.
Smartphones, televisions, computers and other electronic products contain numerous moulded components used for structural, protective and functional purposes.
By bringing precision moulding in-house, Bhagwati can potentially improve coordination between component production and final assembly.
Vertical Integration Strategy
Component sourcing
↓
External suppliers
↓
Higher dependence
↓
Bhagwati’s new strategy
↓
In-house precision moulding
+
Display manufacturing
+
Other components
↓
Greater vertical integration
↓
Higher local value addition
The strategy is designed to create a deeper manufacturing ecosystem around the company’s existing operations.
Bhagwati Wants to Build a Broader Component Ecosystem
The company is not limiting its ambitions to displays and moulding.
Bhagwati is looking to develop capabilities across several critical components used in mobile phones.
These include:
- Memory
- Displays
- Precision moulding
- Chipsets
- Cameras
- Batteries
The objective is to gradually build capabilities across multiple stages of the electronics value chain.
This would represent a significant evolution from Bhagwati’s earlier focus on assembling finished electronic products.
From Assembly to Component Manufacturing
Large-scale electronics assembly can generate substantial manufacturing volumes, but component production allows companies to capture more value within the supply chain.
Bhagwati’s latest investments reflect this shift.
Instead of primarily assembling devices using imported components, the company is attempting to develop domestic manufacturing capabilities for some of those components.
This aligns with India’s broader policy objective of increasing local value addition in electronics.
India’s Electronics Manufacturing Push
India has been attempting to reduce its dependence on imported electronics components and strengthen domestic manufacturing.
The government has introduced multiple incentive programmes to encourage investment in components, semiconductor manufacturing, displays and other parts of the electronics ecosystem.
The Electronics Component Manufacturing Scheme is part of this broader strategy.
The objective is to encourage companies to establish production capabilities within India and build a more resilient domestic electronics supply chain.
ECMS Provides Policy Support
The Electronics Component Manufacturing Scheme is designed to support investment in key electronics components and related manufacturing capabilities.
Bhagwati’s approval under the scheme gives the company additional policy support as it expands into displays and precision moulding.
The scheme is intended to help India move beyond assembling finished electronics and develop a deeper component ecosystem.
This is important because a significant portion of the value of electronic products can sit in components rather than final assembly.
Reducing Import Dependence
Displays, memory, cameras, batteries and other electronic components are critical inputs for smartphones and other devices.
India has increased its electronics assembly capabilities substantially, but domestic component manufacturing has developed more slowly.
Companies such as Bhagwati are now attempting to close that gap.
If successful, greater domestic component production could reduce import dependence while improving supply-chain resilience.
Bhagwati’s Revenue Has Crossed ₹17,000 Crore
Bhagwati Products has recently crossed the ₹17,000 crore revenue milestone.
The company’s growing scale provides a financial and operational base for its expansion into components.
The new projects will require significant capital investment, but they could also create additional revenue opportunities as production ramps up.
The company is therefore moving into a more capital-intensive phase of its growth.
Micromax Connection Remains Important
Bhagwati Products has historically been associated with Micromax and has been involved in electronics manufacturing for major brands.
Its evolution into component manufacturing reflects the changing nature of India’s electronics industry.
As smartphone and electronics production shifts increasingly toward India, domestic manufacturers are looking for ways to move higher up the value chain.
Bhagwati’s component strategy is part of that broader transition.
The Company Already Has Manufacturing Experience
Bhagwati is not entering electronics manufacturing from scratch.
The company has experience across multiple categories, including mobile phones, televisions, air conditioners, batteries, LED panels, printed circuit board assemblies and moulding.
This existing manufacturing base could help it expand into additional components.
The new investments are therefore an extension of an established electronics manufacturing business rather than an entirely new venture.
Employment Could Cross 10,000
The two new projects are expected to create additional employment.
Bhagwati said the expansion could take its overall workforce beyond 10,000 employees.
The increase in employment would include roles associated with manufacturing, engineering, quality control, operations and other functions required to support the new component businesses.
This could also create indirect employment across suppliers and supporting industries.
Greater Noida Could Become a Larger Electronics Hub
The precision moulding investment will strengthen Bhagwati’s presence in Greater Noida.
The region has become an important electronics manufacturing centre, supported by its proximity to major consumer markets, transportation infrastructure and an expanding industrial ecosystem.
Additional investment in components could help deepen the manufacturing network in the region.
Bawal Is Also Becoming Important for Displays
The display project strengthens Bawal’s position in the electronics manufacturing ecosystem.
The facility will initially focus on mobile phone displays and could later expand toward automotive applications.
This diversification could help Bhagwati reduce its dependence on a single product category.
Smartphone Manufacturing Remains a Core Opportunity
India has become one of the world’s largest smartphone manufacturing bases.
Major global brands and contract manufacturers have expanded their operations in the country.
However, a substantial portion of the component value chain remains dependent on imports.
Local display manufacturing could allow companies such as Bhagwati to participate in a larger portion of the smartphone supply chain.
Automotive Electronics Could Become the Next Growth Area
The company’s plan to eventually enter automotive displays points to the growing convergence between electronics and automobiles.
Modern vehicles increasingly use screens and electronic interfaces.
As electric vehicles and connected cars become more common, demand for automotive electronics is expected to increase.
For Bhagwati, entering this market could provide a new growth opportunity once its display manufacturing operations mature.
Scale Will Be Critical
The economics of component manufacturing depend heavily on scale.
Bhagwati’s initial capacity of 1.5 million displays per month provides a starting point, but the company intends to eventually reach 3 million to 4 million displays per month.
Achieving high utilization rates will be important for recovering the substantial capital invested in the facility.
The company will also need long-term customers and stable orders to support the expansion.
Technology and Quality Will Matter
Component manufacturing requires more than simply adding production capacity.
Displays and precision-moulded components need to meet strict quality specifications.
Bhagwati will therefore need to invest in technology, engineering talent, quality control and testing capabilities.
Its ability to meet the requirements of major smartphone and electronics manufacturers will determine how successfully the new projects scale.
Global Partnerships Could Accelerate Expansion
Bhagwati is also looking to leverage global partnerships to bring established technologies and manufacturing capabilities into India.
Such partnerships can help Indian manufacturers gain access to technical expertise, production processes and established customer relationships.
This could accelerate the development of sophisticated component manufacturing capabilities.
What the Investment Means for India’s Electronics Industry
The ₹1,015 crore investment is significant because it targets components rather than simply finished electronic products.
If Bhagwati successfully scales the projects, it could contribute to India’s broader objective of increasing domestic value addition.
More local component production could also reduce supply-chain risks for electronics manufacturers operating in India.
What It Means for Bhagwati
For Bhagwati, the investment represents a major strategic transition.
The company is moving from being primarily an electronics assembler toward becoming a more vertically integrated component manufacturer.
That could increase the complexity of its operations but also provide opportunities for higher value creation.
The success of the strategy will depend on execution, customer acquisition and the ability to achieve sufficient production scale.
Key Risks
The expansion also carries risks.
These include:
- High upfront capital requirements
- Technology and execution challenges
- Competition from established global suppliers
- Dependence on customer orders
- Capacity-utilisation risks
- Pricing pressure
- Rapid changes in electronics technology
- Quality and certification requirements
The company will need to manage these risks while simultaneously scaling its existing operations.
What Investors Will Watch
Investors and industry observers will likely monitor several developments following the MeitY approvals.
These include:
- Display production start date
- Initial capacity utilisation
- Customer contracts
- Expansion toward 3–4 million displays per month
- Precision moulding capacity
- Revenue contribution from components
- Employment growth
- Automotive-display plans
- Additional component investments
- Profitability and return on invested capital
The pace at which the new projects begin contributing to revenue will be particularly important.
Key Facts at a Glance
| Metric | Details |
|---|---|
| Company | Bhagwati Products |
| Association | Micromax group |
| Government approval | MeitY |
| Scheme | Electronics Component Manufacturing Scheme |
| Total investment | ₹1,015 crore |
| Display investment | ₹450 crore |
| Precision moulding investment | ₹565 crore |
| Display location | Bawal, Rewari, Haryana |
| Initial display capacity | 1.5 million/month |
| Planned display capacity | 3–4 million/month |
| Precision moulding location | Greater Noida |
| Display subsidiary/partner | TXD India Technology |
| Bhagwati’s stake in TXD India | 51% |
| Existing revenue milestone | ₹17,000+ crore |
| Expected workforce | More than 10,000 |
| Production timeline | Both projects expected to begin in 2026 |
Infographic: Bhagwati’s ₹1,015 Crore Expansion
BHAGWATI PRODUCTS
↓
MEITY APPROVAL
UNDER ECMS
↓
TOTAL INVESTMENT
₹1,015 CRORE
↓
₹450 CRORE
DISPLAY MANUFACTURING
↓
BAWAL, HARYANA
↓
INITIAL CAPACITY
1.5 MILLION DISPLAYS/MONTH
↓
TARGET
3–4 MILLION/MONTH
↓
FUTURE
AUTOMOTIVE DISPLAYS
+
₹565 CRORE
PRECISION MOULDING
↓
GREATER NOIDA
↓
IN-HOUSE COMPONENT CAPABILITY
↓
BROADER COMPONENT STRATEGY
MEMORY
+
DISPLAY
+
MOULDING
+
CHIPSET
+
CAMERA
+
BATTERY
↓
DEEPER DOMESTIC ELECTRONICS VALUE CHAIN
The Bigger Picture
Bhagwati Products’ approval for ₹1,015 crore of investment under MeitY’s Electronics Component Manufacturing Scheme marks a significant step in India’s effort to build a deeper domestic electronics supply chain. The company will invest ₹450 crore in display manufacturing through TXD India Technology and ₹565 crore in precision moulding at its Greater Noida facility. The display project will initially produce 1.5 million mobile-phone displays a month, with plans to eventually increase capacity to 3–4 million units a month and expand into automotive displays. :contentReference[oaicite:1]{index=1}
The more important development is Bhagwati’s shift from large-scale electronics assembly toward component manufacturing and vertical integration. The company is targeting several critical parts of the electronics value chain, including memory, displays, moulding, chipsets, cameras and batteries. With revenue already crossing ₹17,000 crore and its workforce expected to exceed 10,000, the new investment could position Bhagwati to capture a larger share of the value created as smartphone and electronics manufacturing expands in India. :contentReference[oaicite:2]{index=2}
Looking Ahead
Bhagwati’s immediate priority will be to begin production at the newly approved facilities and scale the display operation quickly. The Bawal facility is expected to start display manufacturing within a quarter, while the precision moulding project in Greater Noida is also expected to commence production this year. The company’s ability to secure customers, maintain high capacity utilisation and meet demanding quality standards will determine how quickly the ₹1,015 crore investment translates into revenue. :contentReference[oaicite:3]{index=3}
Over the longer term, the expansion could help Bhagwati evolve into a broader electronics-component manufacturer rather than remaining primarily an assembly player. Its plans to move into automotive displays and build capabilities across memory, cameras, batteries and other components align with India’s push for higher domestic value addition. If executed successfully, the strategy could strengthen both Bhagwati’s competitive position and India’s ambition to develop a more self-reliant electronics manufacturing ecosystem.
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