Startup karkhana IO Reinventing The EMS Wheel In India

- Advertisement -

EMS is a capital-intensive industry, and hence, with the strongest clashes. Then how is a startup, Karkhana IO, on its way to clock a revenue of 1 billion this fiscal? The founders explain!

Reinventing the wheel in the EMS industry is rarely discussed due to high capital costs involved. Thanks to its unique business model, Karkhana IO made ₹200 million last fiscal and aims for ₹1 billion this year. Sonam Motwani, Founder, and Karthik MC, CRO, Karkhana IO, told EFY’s Mukul Yudhveer Singh that their electronics manufacturing services (EMS) startup aims to support medium and small industries (MSMEs) and other electronic product startups on the supply side. “By supply, we mean the supply of manufactured electronics and solutions. In India, the demand for finished electronic goods is more than the supply of the same. This is what we aim to solve,” says Motwani.

Karkhana IO has partnered with over 500 EMS companies. Simply put, the startup connects these companies with customers who have a demand for custom-built solutions. In the process, the responsibility of quality and delivery of solutions is completely that of the startup. However, it does not get involved in any product design level discussions.

- Advertisement -

“Though our contribution to the customer is limited to manufacturing, we do suggest design changes when we think that the same will lead to better manufacturing prowess. We don’t take any onus on selecting components. In case if a few components are unavailable, we do suggest the replacements for the same. The decision-making lies with the customer,” explains Karthik MC.

Having reported revenue figures of ₹200 million last fiscal, the founders of the company are positive that Karkhana IO’s revenue this fiscal will be in the vicinity of ₹1 billion. For the next fiscal, which they have started taking orders for, they are targeting a pipeline of ₹3 billion. The startup makes margins between the prices it gets the products manufactured at and at the prices it supplies to the companies.

Sonam Motwani and Karthik MC of Karkhana IO
Sonam Motwani and Karthik MC of Karkhana IO

Battery packs, charging infrastructure, IoT-based consumer electronics, medical electronics, drones and aerospace components are the categories that the startup says it is the strongest in.

Increased demand for plug and play solutions is the biggest trend that the founders are witnessing in India’s EMS space. “Initially, we saw a lot of traction for sub-assemblies and component level work. Things are different now,” Motwani says.

For example, the startup is now connecting companies, which earlier partnered with it for battery cases manufacturing, to do complete battery manufacturing.

Motwani adds, “In the four industries we spoke about earlier, we are working with companies generating revenues in the ₹500 million to ₹10 billion bracket. In terms of age, we are working with startups, and also working with companies that are as young as 20 years. The ratio is 45 for startups and 55 for MSMEs.”

According to a report by Mordor Intelligence, the global EMS market size is estimated at US$580.52 billion in 2024, and is expected to reach US$773.22 billion by 2029, growing at a CAGR of 5.90% during the forecast period (2024-2029).

- Advertisement -

Most Popular Articles

Mukul Yudhveer Singh
Mukul Yudhveer Singh
Mukul Yudhveer Singh is an Editor at EFY. He’s an experienced business journalist who is both an enthusiast and a cynic of technology. Believes in data, as well as hunch-based journalism. He defines journalism as- reporting facts which help the audience take their own decisions, not ones that influence them!

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

NVIDIA Record $26B Q1 Revenue, Announces Stock Split And Dividend Hike

0
The quarterly cash dividend has been raised by 150%, resulting in $0.01 per share on a post-split basis. NVIDIA reported first-quarter revenue for the period...

“AIC-T-Hub Aims To Grow Startups So More Indian Unicorns Can Contribute To The GDP”

0
T-Hub has collaborated with Atal Incubation Centre (AIC), initiated by the Atal Innovation Mission to incubate semiconductor startups, fostering innovation for India’s advancement in...

Pros And Cons: Boult’s Varun Gupta On Contract Electronics Manufacturing

0
While contract electronics manufacturing is not a new concept in India, it has lately picked up a pace never seen before. But what has...

Buzz

NVIDIA Record $26B Q1 Revenue, Announces Stock Split And Dividend Hike

0
The quarterly cash dividend has been raised by 150%, resulting in $0.01 per share on a post-split basis. NVIDIA reported first-quarter revenue for the period...

ASUS IoT And BRESSNER Technology Launch CTOS

0
The collaborative approach seamlessly integrates advanced features across CTOS solutions, fostering synergy. ASUS IoT has recently unveiled a strategic collaboration with BRESSNER Technology, aiming to...

Samsung Appoints Veteran Amid AI Chip Challenges

0
This shake-up, effective immediately, sees Young Hyun Jun transitioning from his role in future business planning to tackle the booming demand for high-end AI...

Important Sectors

Samsung Appoints Veteran Amid AI Chip Challenges

0
This shake-up, effective immediately, sees Young Hyun Jun transitioning from his role in future business planning to tackle the booming demand for high-end AI...

Imec-Led European Labs To Get $2.7B From Chips Act Funding

0
Europe's chip revolution gains momentum with a €2.5 billion investment in cutting-edge pilot production line for sub-2nm technologies, aiming to elevate domestic production and...

Progress And Challenges In Autonomous Commuting

0
Despite over a decade of technological advancements and testing in cities like Phoenix and San Francisco, robotaxis still faces significant hurdles.  Companies like Waymo, Cruise,...

New EV Policy Offers Incentives For Plant And Machinery Investments

0
Investments in creating physical infrastructure such as plants, machinery, charging stations, and other assets developed or acquired by companies will qualify for incentives under...

Dr Yashodhan Gokhale Joins JSW Energy As VP

0
Interestingly, he had started his professional innings in the role of a Research Chemist with Sudarshan Chemical Industries Dr Yashodhan Pramod Gokhale has joined JSW...

Manufacturing

Imec-Led European Labs To Get $2.7B From Chips Act Funding

0
Europe's chip revolution gains momentum with a €2.5 billion investment in cutting-edge pilot production line for sub-2nm technologies, aiming to elevate domestic production and...

EVR Motors Discusses Tech Sharing With Indian OEMs

0
The Israel-based EVR Motors designs Radial Flux Permanent Magnet (RFPM) motors and licenses this technology for manufacturing by OEMs and component makers. EVR Motors, an...

Automotive Electronics Industry Growth Prospects And Strategies

0
From electric vehicles (EVs) to autonomous vehicles, discover the challenges, key players, and market segments driving a $136 billion industry revolutionising vehicles and the...
Siemens and CSA

Siemens To Sell Innomotics To KPS For $3.8B

0
Siemens chief financial officer Ralf Thomas expressed his pleasure at the significant progress made in optimizing their portfolio through the sale of Innomotics to...
Siemens and CSA

Siemens Limited Announces ₹1000 Crore Capex

0
In a statement, Siemens announced that it is expanding its factory operations in Goa to address the rapidly growing demand for essential industry components. Siemens...