• ZETWERK and SMILE announce strategic partnership for manufacturing of IT hardware products; with the launch of Devanahalli facility
• Partnership to Create Pan-India Footprint for ZETWERK’s electronics business
• ZETWERK has committed to invest ₹1,000 Crore to Build ESDM Capabilities in India

Bengaluru, India – 5 August, 2024 – ZETWERK Manufacturing Businesses, the world’s largest contract manufacturing marketplace, announced today that it has entered into a strategic partnership with city-based SMILE Electronics, a rapidly growing Electronics Manufacturing Services (EMS) company, to launch three state-of-the-art factory for IT hardware production in India.

Located near Bengaluru, the Devanahalli factory boasts of fully automated production lines equipped for assembling, testing, and packing of Desktops, Laptops, Energy meters and Remote Controls. Cutting-edge technology like automated screen-printing, placement and reflow machines ensure efficient production, with the ability to produce 0.75 million components per hour. The facility prioritizes environmental responsibility through RoHS compliance and offers conformal coating for enhanced product protection.

The new facility was inaugurated by Harish Kohli, Managing Director of Acer India.

 “Having worked with SMILE for some time, I am confident in their ability to deliver high-quality global IT hardware products from India. I am excited about this strategic

partnership between SMILE and ZETWERK, which promises to help them scale up and meet the rising demand in the IT hardware sector. This collaboration is further strengthened by Acer India’s commitment to the ‘Make in India’ initiative, emphasizing the importance of local manufacturing and innovation. Together, these efforts will not only enhance product quality but also contribute significantly to India’s economic growth and technological advancement,” Mr Kohli said.

SMILE is poised for rapid growth, with this new facility being the first step. Partnering with ZETWERK unlocks two additional factories in Chennai and Andhra Pradesh for SMILE, creating a strong South Indian presence. This expansion brings SMILE’s total footprint to four factories with ZETWERK, including their existing facility in Bengaluru. ZETWERK has its own four factories in North India to cater to demand for mobile phones, telecom devices, smart meters, television & display devices, and hearable & wearables.

“SMILE is committed to being the strategic partner of choice for major ODMs and OEMs,” said

Mukesh Gupta, Chairman of SMILE Electronics.

 “We provide a seamless experience, transforming concepts into reality with our one-stop solutions. Our 750 skilled employees across diverse industries manage a well-rounded portfolio, catering to both low-mix, high-volume and high-mix, low-volume production needs. We’re thrilled to partner with ZETWERK, a leader in the global value chain. This collaboration offers perfect synergy: SMILE scales to become a top Indian ESDM player, while ZETWERK gains expertise in the flourishing IT hardware industry,” Mr Gupta added.

“We are thrilled to embark on this strategic partnership with Smile, a move that aligns perfectly with the Government of India’s vision for a robust and self-reliant electronics industry. By combining our strengths, we aim to accelerate the growth of the domestic electronics ecosystem, create significant employment opportunities, and contribute meaningfully to India’s journey towards becoming a global manufacturing powerhouse. This partnership is a testament to the conducive business environment fostered by the government’s progressive policies and initiatives,” said Rahul Sharma, Co-founder, Zetwerk.

“This partnership with ZETWERK unlocks significant advantages for both parties,” said Josh Foulger, President of ZETWERK Electronics.

 “By strategically optimizing design, manufacturing, distribution, and even reverse logistics, we can achieve Tier 1 pricing. ZETWERK’s strong North American presence will contribute to a well-integrated global supply chain. Additionally, SMILE will be strengthened in key sectors like Aerospace & Defense, Automotive, and Consumer Electronics – areas where ZETWERK already has a well-established market position,” Mr Foulger added.

SMILE is a dedicated supporter of domestic manufacturing and is a recipient of the Indian government’s IT hardware Production Linked Incentive (PLI) schemes 1.0 and 2.0. This initiative signifies SMILE’s commitment to propelling India’s growth in IT hardware production. In the past three years, SMILE has successfully manufactured and supplied millions of desktop PC components and electronic devices sold on leading platforms.

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