Karkhana has acquired Micron EMS Tech Pvt Ltd, a Bengaluru-based electronics manufacturing services (EMS) company, in an undisclosed transaction. The acquisition adds a dedicated electronics manufacturing facility in Bengaluru and marks an expansion of Karkhana’s operations from a manufacturing aggregation platform to an integrated electronics manufacturing partner.
The acquisition brings a manufacturing unit of more than 40,000 square feet in Bengaluru into Karkhana’s operations. The facility includes surface mount technology (SMT) lines, through-hole assembly lines for printed circuit board assembly (PCBA), and more than 10 box-build production lines.
Following the acquisition, Karkhana’s workforce will increase to more than 150 employees across manufacturing, engineering, quality control and operations functions. The company has set a target to reach annual recurring revenue of INR 2 billion by the financial year 2027.
The added capacity is expected to strengthen Karkhana’s in-house PCBA manufacturing capabilities while enabling higher levels of automation and advanced testing during production. The facility will support the production of electronic assemblies as well as integrated system-level box builds that can be delivered directly to customers.
The manufacturing unit will operate with a multi-stage quality assurance process that includes soldering checks, three-dimensional inspection, automated optical inspection (AOI), X-ray inspection, conformal coating and product testing. Karkhana is also implementing enterprise resource planning (ERP) and manufacturing execution systems (MES) to improve operational visibility and provide digital traceability throughout the production process.
The company currently works with more than 25 original equipment manufacturers (OEMs) across sectors including industrial electronics, automotive systems, telematics, consumer Internet of Things (IoT) devices and medical equipment. It also plans to increase exports to the United States and the European Union as companies diversify supply chains under the China+1 strategy.
Founded in 2018, Karkhana provides electronics manufacturing services and box-build assemblies for hardware companies, particularly small and mid-scale firms. The company is backed by investors including Arkam Ventures, Susquehanna Asia Venture Capital and Vertex Ventures Southeast Asia and plans to expand into original design manufacturer (ODM) capabilities by adding product design and development to its manufacturing operations.
