Manufacturing startup Karkhana has completely acquired Micron EMS Tech Pvt Ltd, an electronics manufacturing company based in Bengaluru. The companies did not reveal the value of the deal.
This acquisition shows a shift in Karkhana’s business strategy. Earlier, the company mainly worked as a platform that connected businesses with manufacturers. Now, it wants to become a full-service electronics manufacturing partner that can handle the entire production process.
After buying Micron EMS Tech, Karkhana will get access to a large manufacturing facility in Bengaluru that covers more than 40,000 square feet. The facility has advanced equipment such as high-speed SMT lines, through-hole PCB assembly lines, and more than 10 box-build production lines.
This will help Karkhana increase its PCB assembly (PCBA) production capacity, improve automation, and use better testing systems for electronics manufacturing.
The manufacturing unit will follow several quality checks to make sure the products are reliable. These checks include soldering inspections, 3D inspection, automated optical inspection (AOI), X-ray inspection, conformal coating, and final product testing. Karkhana will also use digital tools such as ERP (Enterprise Resource Planning) and Manufacturing Execution Systems (MES) to improve operations. These systems will help track every step of the production process and provide full digital records of how each product is made.
With these improvements, Karkhana will be able to manufacture many types of electronic products. This includes basic electronic assemblies as well as fully built system-level products that are ready for customers to use.
At present, the company works with more than 25 OEM (Original Equipment Manufacturer) partners and plans to add more customers in the future. Its main focus industries include industrial electronics, automotive systems, telematics, consumer IoT devices, and medical equipment. Karkhana also plans to increase exports to markets like the United States and the European Union, as many global companies are moving part of their supply chains outside China under the China+1 strategy.
Sonam Motwani, Founder and CEO, Karkhana, said, “The acquisition of Micron is a strategic step in how we want to build Karkhana for the long term. By combining our strengths, Karkhana can accelerate its transition into a full-stack electronics manufacturing partner. We can now offer OEMs a more comprehensive manufacturing solution for electronics, mechanical, and system integration with global-standard certifications, tight process control, and end-to-end accountability from component sourcing and PCBA to final assembly, testing, and logistics. As we scale, we will continue to expand our manufacturing capabilities and look to invest in both brownfield and greenfield projects.”
Kalpana Naagaraj, MD, of Micron EMS said, “Fifteen years of manufacturing excellence meet the next generation of supply chain thinking. Karkhana and Micron combined bring a level of depth and capability that sets a new benchmark for electronics manufacturing in India. Our union puts us in a strong position to serve OEMs at scale, across industries. India’s EMS (Electronics Manufacturing Services) sector is growing at a compound annual growth rate (CAGR) of 34–35 per cent and demand for reliable, non-China supply chains has never been stronger. Together we will move fast to capture this opportunity.”
Founded in 2018, Karkhana offers electronics manufacturing services and box-build assembly for hardware companies. The company mainly helps small and mid-sized businesses, which often find it difficult to work with large manufacturers that usually focus on very high production volumes.
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