Micromax aiming for a run rate of ₹1,000 crore per month, govt must extend PLI

The government should extend the production-linked incentive (PLI) scheme for mobile manufacturing beyond FY26, as its success has helped catapult India into a key manufacturing destination and export hub for mobile phones, said Rahul Sharma, cofounder of Bhagwati Products.

The Indian entrepreneur, who is also the cofounder of mobile phone brand Micromax, said that the scheme has seen massive success and could provide India with a major advantage amid the tariff pause by the US government.

“Given the success it has brought to the country, I think it should be renewed,” Sharma said, highlighting the rise in production levels in the country over the past few years.

India currently manufactures about 99 per cent of the 330 million-plus smartphones sold in the country, according to the Ministry of Electronics and Information Technology. Apple and Samsung are among the largest exporters of smartphones from India, with exports reaching ₹2 trillion as of 2024-25.

Bhagwati Products, which has formed a joint venture with Chinese original design manufacturer Huaqin Technology and now manufactures devices for Vivo and Oppo, aims to double its revenue from mobile phone manufacturing to over ₹12,000 crore in 2025-26 (FY26), up from ₹6,200 crore in 2024-25 (FY25). The company took over one of Vivo’s manufacturing facilities in Greater Noida last year after the Chinese smartphone maker sought Indian partners. Sharma confirmed that some Oppo smartphone models are also being produced at the facility, and more brands are expected to be added this year. For 2023-24, the company generated ₹620 crore in revenue, Sharma added.

“We’re aiming for a run rate of ₹1,000 crore per month. We’re in discussions with an American brand as well,” he said.

The company plans to invest ₹500 crore to expand its manufacturing facilities and will also scout for new locations as it targets trebling its production of phones to 25 million units in FY26, up from the current level of 7 million in FY25. It currently manufactures phones and tablets in Bhiwadi, Hyderabad, and Greater Noida.

The company will start producing hearables and wearables this quarter, with laptops set to be manufactured starting next year. It will also benefit from the PLI scheme for information technology (IT) hardware, which offers incentives for IT hardware, including laptops, servers, personal computers, and other products.

According to industry insiders, Bhagwati Products may begin manufacturing true wireless earphones and smartwatches for OnePlus. While the company has yet to begin exports and is currently focused on meeting local demand, it plans to enter the mobile phone component manufacturing sector within India.

“We’re also entering the component ecosystem, focusing on critical components, among others. Through our tieup with Phison Electronics, we’re already involved in memory chips and will pursue more technology partnerships, targeting segments covered under the scheme,” Sharma said.

Earlier this month, the government notified a ₹22,919 crore scheme to promote the domestic manufacturing of electronics components, including display and camera modules, non-surface mount devices, multi-layer printed circuit boards, and lithium-ion cells, among others.

Sharma added that the consumer electronics and smartphone manufacturer plans to expand into other products, including automotive electronics, supported by its partnership with Huaqin, which will provide technology and production expertise for its Indian operations. However, it will first consolidate its mobile manufacturing wherewithal, followed by component manufacturing. Business Standard