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B2B contract manufacturing startup Karkhana has acquired electronics manufacturing services (EMS) firm Micron EMS Tech for an undisclosed amount. With the acquisition, Karkhana will add a dedicated 40,000+ sq ft manufacturing facility in Bengaluru strengthening its depth in PCBA in-house while implementing advanced testing, and higher levels of automation.
The new facility will feature high-speed surface mount technology (SMT) and through-hole technology (THT) — advanced automated assembly lines designed for rapid, high-volume production of PCBs. Components will also undergo a rigorous multi-stage quality assurance process including soldering, 3D inspection, automated optical inspection (AOI), X-ray inspection, conformal coating, and comprehensive testing.
Additionally, the facility will be equipped with digital systems such as enterprise resource planning (ERP) and manufacturing execution systems (MES) to enable end-to-end digital traceability, quality control, and machine-level data utilisation.
Together, these capabilities will allow Karkhana to manufacture a range of products — from standard electronic assemblies to fully integrated system-level box builds ready for deployment.
Following the acquisition, the startup expects to double its customer base, expand exports to the US and EU, and achieve an annual recurring revenue (ARR) of ₹200 Cr, driven by the additional manufacturing capacity.
“With our combined forces, Karkhana is able to leapfrog and move faster towards becoming 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,” Karkhana’s founder and CEO Sonam Motwani said.
Founded in 2018, Karkhana provides manufacturing solutions to OEMs across sectors such as electric vehicles and consumer electronics, and claims to work with more than 25 top OEMs in India.
Until now, the startup delivered these solutions through its network of manufacturing suppliers. The acquisition of the 15-year-old Micron EMS Tech will enable it to diversify production volumes and cater to a broader spectrum of OEMs, particularly small and medium enterprises.
The startup is also looking to deepen its production capabilities in sectors including automotive electronics, industrial electronics, telematics, consumer IoT, and medical devices.
In the long term, Karkhana envisions its future as an original design manufacturer (ODM), adding design, engineering, and product development to its manufacturing offering.
The move to build in-house manufacturing capabilities comes at a time when India’s electronics manufacturing sector receives increased policy support. In the Union Budget 2026, the government raised the outlay for the electronic component manufacturing scheme (ECMS) to ₹40,000 Cr, as part of its push to build a $500 Bn electronics ecosystem by 2030–31.
The post Karkhana Acquires Micron EMS To Scale Electronics Manufacturing appeared first on Inc42 Media.
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