Indian Manufacturing's Best Kept SECRET Revealed

Brief Summary

This video discusses Zetwork, a profitable Indian unicorn that is transforming the traditional manufacturing sector by making it more transparent and efficient. Zetwork started as a software solution to streamline B2B manufacturing supply chains but pivoted to become a marketplace connecting customers with suppliers. The company further evolved to manage the entire order process, providing visibility and transparency to customers. Zetwork has expanded into manufacturing complex items and has achieved significant revenue and international growth.

• Zetwork is transforming traditional manufacturing by providing transparency and efficiency.
• The company pivoted from a software solution to a marketplace and then to managing the entire order process.
• Zetwork has expanded into manufacturing complex items and has achieved significant revenue and international growth.

Introduction to Zetwork

The video introduces Zetwork as a company revolutionizing the traditional manufacturing sector in India. It draws a parallel between ordering food on apps like Zomato and Swiggy and the ability of Indian Railways to order materials for constructing a railway bridge with similar ease and transparency. Zetwork, based in Bangalore, is highlighted as a profitable unicorn that is bringing the deep capabilities of Indian manufacturing to the global economy by making manufacturing transparent and seamless.

Zetwork's Origin and Pivots

Zetwork was founded in May 2018 by Amrit Acharya, Srinath Ramakrishnan, Vishal Chaudhary, Rahul Sharma, and Ankit Fatehpuria. Initially, they built in-house software to streamline B2B manufacturing supply chains, enabling companies to interact with their manufacturing suppliers. However, they pivoted to create a marketplace of suppliers to address the need for long-term, reliable, and trusted suppliers. After the first pivot, Zetwork experienced increased orders but also a rise in customer complaints about suppliers. This led to a second pivot where Zetwork started managing the entire order process to ensure quality and timely delivery.

Zetwork's Business Model and Expansion

Zetwork operates by matching customers with the best suppliers in India for specific domains like steel fabrication. They assess customer requirements and match them against a pool of 10,000 suppliers, who undergo physical and credential verification involving 300 data points to ensure transparency. Zetwork functions as a supplier to large original equipment manufacturers (OEMs), executing orders through their network of verified suppliers. Recognizing India's lag in manufacturing complex items, Zetwork expanded into manufacturing, setting up a factory in Noida to make wearables and acquiring companies like Pinaka Aerospace and Warda Fabrication.

Zetwork's Impact on Manufacturing

Zetwork has significantly reduced the time required for supplier discovery and project turnaround. In a pre-Zetwork world, the process would take two to three weeks for supplier discovery and negotiations, adding up to two months for the entire process. Zetwork's tech solution provides hourly updates, from generating purchase orders to quality control and delivery. They also implemented parallel manufacturing, breaking down projects among multiple suppliers to minimize delivery times. This approach has slashed the time required for manufacturing projects to one-fifth of what it used to be.

Zetwork's Financials and Global Impact

As of March 31, 2022, Zetwork had earned 5,000 crores in revenue with another 10,000 crores in open order books. Their revenue jumped six-fold, and they recorded an EBITDA of 57 crores in 2021. Zetwork's international revenue has increased from 5% to 16%, with the U.S. being the largest international customer. The company has moved supply chain requirements for over 300 global companies to India, improving the standards and reputation of Indian manufacturing. Zetwork is involved in various sectors, from wearables to electronics, and has even backed a 126 crore order from L&T for the Mumbai-Ahmedabad bullet train corridor.