Micromax Ventures into AI and IoT: A Strategic Shift in the Indian Tech Landscape

Micromax Sets Sights on AI and IoT: Co-Founder Rahul Sharma Reveals Plans

The Indian consumer electronics firm Micromax plans to venture into the new age sectors including AI and IoT, to diversify its business beyond its core operations. The company's co-founder Rahul Sharma told The Economic Times, that its manufacturing arm Bhagwati had acquired Vivo's Greater Noida-based mobile phone factory. The company is up with a scheme to manufacture its originally designed handsets, automotive parts, and IT hardware using the facility. This strategic shift is driven by the company's goal to stay relevant in the evolving tech landscape and leverage emerging technologies to fuel growth.

Micromax Explores JV To Join AI & Electronics Bandwagon

Micromax is developing a content app to bundle multiple OTT streaming platforms, aiming to disrupt the content space With new age businesses picking up momentum in India, Micromax cofounder Rahul Sharma is reportedly looking to enter the burgeoning AI hardware space in a joint venture (JV) with a Taiwanese memory chip maker. Sharma told ET that Micromax is still in discussions with the Taiwanese major and the focus will be on developing custom-made memory and storage solutions, which are anticipated to significantly reduce costs. Micromax is developing a content app to bundle multiple OTT streaming platforms, aiming to disrupt the content space. Its manufacturing arm, Bhagwati, has taken over Vivo's mobile phone factory in Greater Noida and will produce mobile phones, IT hardware, and automotive parts in partnership with a major original design manufacturer (ODM). Sharma, without revealing the company name, said that the JV will see Bhagwati holding majority ownership and managing operations, while the ODM partner will provide technology and designs. Sharma will serve as the CEO of the joint venture as smartphone sales take a back seat. "The partnership is all about technology. They have massive design capabilities, and are present in three ecosystems - Mobile phones, IT hardware, and automotive. They are one of the biggest in the world right now in the electronics manufacturing space," Sharma told ET, adding that the JV is a massive leap for the country's ambition in becoming a global manufacturing hub. Sharma is in discussions with a Taiwanese memory chip maker to establish an R&D unit in India for designing custom memory and storage solutions for AI data centres. This will be under a new entity that will also assemble these chips locally. "The investments here range around a couple of hundred crores, and we will be a able to follow the same trajectory as NVIDIA in the AI business, and help bring down costs for companies looking to train foundational models," Sharma said. The AI play will be led by a former executive of HP Enterprises and Seagate, with an office in Bengaluru, with the aim to serve the top industrial houses and government units in India. Sharma plans to disrupt the video streaming space by bundling multiple OTT apps into a single platform, allowing users to pay one fee for access to all content. He confirmed that OTT players have agreed to a revenue-sharing model. This move comes as government initiatives and ongoing tensions between Beijing and Washington drive Chinese manufacturers to move production to India. Recently, Chinese technology giant Lenovo began manufacturing AI servers in southern India, expanding beyond its traditional products like laptops and smartphones. Meanwhile, Apple is shifting some of its production to India and aims to produce 25% of its iPhones there by 2028. Additionally, Xiaomi, which currently makes wireless audio products in India, is exploring opportunities to start smartphone production in the country.

AI to electronics: Micromax to foray into new-age businesses

NEW DELHI: Micromax co-founder Rahul Sharma has planned a multi-pronged telecom foray - through electronics design and manufacturing in a Chinese joint venture - after having begun as a local challenger in the handphone market that over time became an east Asian stronghold. Sharma also told ET that Micromax is in talks with a leading Taiwanese memory chip maker to make a play in the AI hardware space through custom-made memory and storage solutions that is expected to bring costs down sharply. The company is also building a content app that will bundle multiple OTT streaming apps under one roof, a move aimed at disrupting the entire content space. Sharma said Micromax's manufacturing arm Bhagwati has taken over Vivo's mobile phone factory in Greater Noida, where it will be making originally designed mobile phones, IT hardware and automotive parts through a joint venture with one of the largest ODMs (original design manufacturers). Sharma, while not confirming the name of the company, said the JV entails Bhagwati to have majority ownership, and in charge of operations, while the ODM partner will lend its technology and designs. Sharma will serve as the chief executive of the joint-venture entity as smartphone sales takes a back seat. ET recently reported that a JV between Bhagwati and China's Huaqin, one of the top three ODMs that account for designing a large chunk of the smartphones sold in the world, has been cleared by the government for operating in the country. "The partnership is all about technology. They have massive design capabilities, and are present in three ecosystems - Mobile phones, IT hardware, and automotive. They are one of the biggest in the world right now in the electronics manufacturing space," Sharma said, adding that the JV is a massive leap for the country's ambition in becoming a global manufacturing hub. Huaqin's customers include nearly every large smartphone and IT hardware brand, according to the company's website. Sharma is also in talks with a leading Taiwanese memory chip maker to set up a R&D unit in India to design custom-made memory and storage solutions for AI data centers. This will be done under a new entity which will also assemble the memory and storage chips locally in India, he said. "The investments here range around a couple of hundred crores, and we will be able to follow the same trajectory as NVIDIA in the AI business, and help bring down costs for companies looking to train foundational models," Sharma said. The AI play will be led by a former executive of HP Enterprises and Seagate, with an office in Bengaluru, with the aim to serve the top industrial houses and government units in India. Sharma is also looking to disrupt the video streaming content space with a product that bundles many of the OTT streaming apps under one roof. "Instead of paying subscription fees to individual apps, we are bringing just one app for which a user has to pay to get access to all the content," Sharma said, adding that the OTT players are already onboard with a revenue-sharing agreement.