Technology and Internet of things (IoT) devices firm Smartron on Friday signed a memorandum of understanding with the Telangana government to expand its research and development facility in the State as well as establish a mega data centre and manufacturing unit.
The Hyderabad-based start-up, with its sight set on becoming a global OEM player, would invest ₹1,500 crore over the next three years on new facilities and expansion.
Founder and chairman Mahesh Lingareddy said the data centre would have 10,000 servers (racks) and support the tronX IoT platform of the company. While the campus would require about 20 acres, the project required an investment of around ₹500 crore.
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A similar amount would go into the manufacturing unit which focusses on non-handset products such as smart devices, sensors, wireless router, smart bands, laptops, and electric bikes. The MoU, signed in presence of Information Technology and Industries Minister K.T. Rama Rao, was also for expanding the corporate headquarters and research and development centre, besides for working with T-Hub technology incubator.
For handsets, the company would continue to depend on the Foxconn unit in Sri City and that of another partner in Noida.
Set up in August 2014, the company has employed 200 people, a chunk of them in Chennai. The plan was to grow the headcount to 500 by March 2018.
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On how the ₹1,500 crore would be mobilised, Mr. Lingareddy said the company had, in the two years, raised ₹100 crore and received confirmation for ₹250 crore last month. It was confident of getting ₹500 crore to ₹600 crore more in the current fiscal.
New products
By March, eight new products would be launched, all of them designed and engineered in India. One of them would be a smartphone built around cricketer Sachin Tendulkar, who was a strategic shareholder and brand ambassador of the company. It would be launched around his birthday, Mr. Lingareddy said.
Smart band, smart bike, T-Book-2, T Ultra Book (a 14 inch laptop), wireless router, and T-Home smart home solution comprising lighting equipment, switches and cylinder with voice recognition, as well as a high end T-Phone 2 are some of the other devices which would be launched. The company was open to acquiring companies.
A few months ago, it had taken over a Chennai start-up that was into electric bikes. This was followed by acquisition of two more companies, the details of which were yet to be announced.
On the revenues, Mr. Lingareddy said the company clocked a turnover of ₹50 crore last fiscal, and with an array of new products, it would touch ₹1,000 crore by March 2018.
The Minister said Hyderabad was fast emerging a manufacturing hub for electronics and was home to four mobile makers, including Smartron. Two more mobile handset makers would be setting up facilities in the State. IT and Industries Secretary Jayesh Ranjan signed the MoU on behalf of the government.