Zetwerk Manufacturing Businesses, a prominent player in the contract manufacturing arena, is setting its sights on an initial public offering (IPO) expected within the next 15 to 24 months. This ambitious timeline was shared by Amrit Acharya, the CEO and co-founder, during the recent launch of Zetwerk Electronics’ latest manufacturing facility in Tamil Nadu, near Chennai.
IPO Aspirations and Future Growth
While discussions about the IPO are underway, Acharya noted, “We are preparing to file, but I think we’re looking at a timeline of 15 to 24 months.” Although there’s no urgency to go public immediately, as most investors are in for the long haul, the company is eager to explore this significant milestone. The planned IPO aims to raise between $400-500 million, with a projected valuation around $5 billion.
- Potential IPO Size: $400-500 million
- Estimated Valuation: $5 billion
- Timeline: 15 to 24 months
Strategic Expansion in Electronics
The opening of Zetwerk Electronics’ seventh facility marks a pivotal moment for the brand, with a Rs 1,000 crore investment behind it. This new plant is strategically located in a bustling industrial area, poised to create around 1,500 jobs. Union Minister Ashwini Vaishnaw highlighted the significance of the electronics sector, which has emerged as the nation’s second-largest export domain over the past decade.
Acharya also shared insights on Zetwerk’s growth trajectory, emphasizing, “While renewables, aerospace and defense, and electronics are projected to contribute 70-80% of our revenue within the next 3-4 years,” showcasing the company’s focus on sectors with robust demand.
Financial Performance and Market Position
In the fiscal year 2024, Zetwerk achieved an impressive gross merchandise value (GMV) of ₹17,564 crore, significantly driven by components supplied for the renewables sector. Electronics now represent 15% of the company’s overall business and are one of its fastest-growing segments.
The company recently secured $70 million in funding from notable investors, including Khosla Ventures and Rakesh Gangwal, co-founder of IndiGo Airlines. To date, Zetwerk has successfully raised $768 million across 16 funding rounds, underscoring its attractive market position.
Order Book and Manufacturing Strategy
Currently, Zetwerk boasts a robust order book valued at approximately ₹17,000 crore (around $2 billion), with a third of this comprised of multi-year contracts. This includes long-term recurring agreements, further solidifying its market presence.
The ongoing expansion of manufacturing capabilities is vital for Zetwerk, which traditionally relies on a network of small-scale global manufacturers. Presently, 10-15% of their production is handled in-house, with expectations to increase this to 15-20% across various sectors.
Zetwerk is not just growing; it’s evolving. As the company prepares for its future IPO and continues to expand its manufacturing footprint, it remains well-positioned to capitalize on the surging demand in the electronics and renewables markets.
