Karkhana Acquires Micron EMS Tech Pvt Ltd, Expands Electronics Manufacturing Capabilities

Deal Overview

Bengaluru-based Karkhana, a B2B manufacturing startup, has acquired Micron EMS Tech Pvt Ltd for approximately Rs 10 crore. The deal marks Karkhana's shift from operating as a contract manufacturing aggregator to owning production facilities and offering full-stack electronics manufacturing capabilities.

Acquisition Details

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The acquisition includes a 40,000+ sq. ft. manufacturing facility in Bengaluru, equipped with high-speed surface-mount technology (SMT) lines, through-hole PCB assembly, and over 10 box-build lines. This move enables Karkhana to bring printed circuit board assembly (PCBA), advanced testing, and system-level manufacturing in-house.

Integration Plans

Karkhana plans to combine Micron's production capabilities with its own strengths in engineering, sourcing, and programme management to deliver end-to-end manufacturing services. The combined entity will operate with a 150+ member team across manufacturing, engineering, quality, and operations.

Business Strategy

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Karkhana currently works with over 25 original equipment manufacturers (OEMs) and generates most of its revenue from three key sectors: automotive electronics, industrial electronics, and connected consumer devices. The company plans to deepen its presence in these segments while expanding into sectors such as telematics, medical devices, and energy systems.

Revenue Growth and Expansion

Karkhana expects to triple its current scale, targeting Rs 200 crore in annual recurring revenue (ARR) by FY27. The company aims to expand exports to the US and European markets, driven by global companies diversifying supply chains under the China+1 strategy.

Long-term Vision

Beyond contract manufacturing, Karkhana aims to evolve into an original design manufacturer (ODM) by developing its own product designs and intellectual property. The company's long-term vision is to build reference designs for certain product categories and start owning more of the product IP.