Suman and Mukesh Gupta Pioneers in India’s Electronics Manufacturing Industry

In the world of entrepreneurship, there’s no predetermined moment to embark on a transformative journey. Mukesh Gupta, Director of Smile Electronics Limited, embodies this belief. With a background in law and 25 years of experience in the private financial market, including running a Category 1 merchant banking enterprise, Mukesh, at the age of 63, discovered a business opportunity in the electronics industry. Mukesh Gupta’s transition from financier to entrepreneur was marked by astute observations and a deep understanding of the electronics industry. With a clientele that included prominent corporations during his career as a financier, Mukesh recognized a gap in the electronics market. Guided by his industry insights and network, he decided to venture into electronics manufacturing.

In the year 2000, Mukesh Gupta founded Smile Electronics in Bengaluru. The company’s primary focus was Electronics Manufacturing Services (EMS), offering design, manufacturing, fulfilment, logistics services, and product life cycle management. With his wife, Suman Gupta, as the major shareholder, Mukesh embarked on a journey that would reshape India’s electronics manufacturing landscape.

Seizing Opportunities in the Defence Sector:

Smile Electronics began its journey with a consigned assembly for the defence sector, primarily partnering with Bharat Electronics Ltd (BEL). The timing was crucial, as it coincided with a significant shift in the Public Sector Undertakings (PSUs) workforce to the private sector. This shift aimed to encourage private manufacturing of basic defence components. Smile Electronics seized this opportunity, kick-starting its first project with BEL. Over time, the company expanded its portfolio to include high-tech, complex printed circuit boards for the Airforce and Navy, establishing its presence in India’s defence electronics sector.

Diversification and Targeting Global Businesses:

As the telecommunications and medical devices sector entered the company’s radar, Smile Electronics contemplated diversification. However, the telecom infrastructure industry’s slowdown post the 2G telecom scandal in India led to a strategic shift. Smile Electronics decided to target large global businesses in different verticals, necessitating infrastructure upgrades and a renewed focus on its core competencies. Today, Smile Electronics operates manufacturing facilities in Bengaluru and Mysuru, with procurement offices in Singapore and Fremont, USA. The company boasts an impressive annual turnover of Rs 200 crore.

Multifaceted Market:

Over two decades, Smile Electronics diversified its offerings to encompass electronic items catering to diverse sectors such as consumer electronics, telecommunication, automotive, defence, and aerospace. The company’s product range includes printed board assemblies for washing machines, refrigeration, biometric devices, radio frequency devices, power supplies, energy meters, and more. While the majority of Smile Electronics’ clientele hails from consumer electronics, power, information technology, and telecommunications, the company also caters to global markets, including the US, China, South Korea, and Japan. Remarkably, Smile Electronics contributed to ISRO’s Mangalyaan project, a testament to its technical prowess.

Focusing on Self-Reliance:

Smile Electronics faced initial challenges due to the capital-intensive nature of the manufacturing sector. However, Mukesh Gupta‘s proactive approach to capital investments ensured financial stability, allowing the company to navigate challenges effectively. Managing costs, optimizing expenses, and maintaining financial discipline were integral to their success. Today, one of the pressing challenges lies in reducing dependence on Chinese imports. Smile Electronics, like many other Indian manufacturers, recognizes the importance of strengthening the domestic supply chain and fostering self-reliance. Government initiatives, coupled with continuous incentives, are essential to transform India’s hardware industry into a globally competitive force.

Smile Electronics envisions a future characterized by expanded manufacturing capabilities and a robust digital footprint. The company plans to establish a state-of-the-art facility housing over 25 manufacturing lines, emphasizing automation and customer-centric solutions. This ambitious move is expected to bolster its position as a leading player in the industry. With a goal of achieving a turnover of Rs 500 crore in the next five years, Smile Electronics aims to create over 1,000 jobs, contributing to India’s economic growth. The company’s growing research and development facilities are poised to provide complete Original Design Manufacturer (ODM) support to global brands, reaffirming its commitment to innovation and excellence.

Suman and Mukesh Gupta’s entrepreneurial journey is a remarkable story of vision, adaptability, and resilience. Their transition from finance to electronics manufacturing and their ability to diversify and innovate have made Smile Electronics a pioneering force in India’s electronics industry. As they continue to expand and contribute to India’s self-reliance, their journey remains an inspiration for aspiring entrepreneurs.