Bhagwati Products, linked to Micromax, has received government approval for a ₹1,015 crore investment in display and moulding manufacturing. The project aims to boost domestic electronics component production. While this expansion highlights growth plans, the company remains unlisted, and its expected IPO faces potential delays due to market volatility.
Bhagwati Products Limited, a subsidiary associated with the well-known smartphone brand Micromax Informatics, has received approval to invest ₹1,015 crore in local electronics manufacturing. This significant capital spending is supported by the government under the Electronics Component Manufacturing Scheme (ECMS), which aims to reduce reliance on imported components and build deeper manufacturing capabilities within India.
The investment is split into two primary areas. A total of ₹450 crore is designated for mobile phone display module assembly, which will be managed through the company’s venture, TXD India Technology. The remaining ₹565 crore is allocated to precision moulding, which involves creating complex, high-quality plastic or metal parts used in electronic devices. Both projects are expected to start production within this year and are projected to create over 10,000 new jobs.
This move marks a shift in the company’s strategy. Instead of focusing only on assembling finished products, Bhagwati Products is moving toward manufacturing core components. By building local capacity for displays and moulding, the company intends to become a critical supplier for larger electronics brands. The company currently operates as a manufacturing partner for major global brands such as Vivo, OPPO, and Lenovo, which form a significant part of its business model.
While this investment suggests a strong expansion, the business is not immune to market challenges. The company’s revenue growth is closely tied to the health of the smartphone market. If demand for these brands softens or if global supply chains face disruption, the utilisation of these new facilities could be affected. Furthermore, the company’s expansion plans are often influenced by the stability of government incentives, such as the Production Linked Incentive (PLI) schemes.
Investors who have been tracking news about a potential public listing should note that Bhagwati Products is currently a public unlisted company. Although there have been reports about an upcoming initial public offering (IPO) intended to raise over ₹3,000 crore, market reports indicate that this listing could be delayed by up to three quarters. This potential delay is reportedly due to volatility in memory chip prices and broader market uncertainty, which could impact the valuation expectations for the company.
For those monitoring the company’s progress, the key updates to track will be the actual commissioning of the new display and moulding facilities, any updates on their partner relationships with major smartphone brands, and official announcements regarding the timeline of their potential market entry.