New Delhi, Jul 7 (PTI) Capital and consumer goods contract manufacturer Zetwerk expects to grow business by around three times to Rs 3,000 crore in the current financial year, a senior company official said on Wednesday.
Zetwerk Manufacturing Businesses CEO Amrit Acharya said the company's revenue from operation grew about three times to Rs 949 crore in 2020-21 from Rs 360 crore in 2019-20.
'Like last year, we grew 3x year-on-year. I think as a base case, we can continue to expect a similar growth trajectory in the current financial year. I also want to highlight that we have achieved this growth in a fairly capital efficient manner overall,' Acharya said.
The company has an order book of Rs 4,500 crore and is also seeing traction from overseas markets for production of consumer and capital goods in India.
'At Rs 360 crore, the company's overall losses were around 8 per cent of revenue in financial year 2019-20, but at Rs 949 crore in FY21, the losses narrowed to 2 per cent of revenue. While you know we have grown a lot in the last year, we have done it in a very capital efficient manner,' Acharya said.
The company works with over 1,500 manufacturing partners across the country and provides them technology support to enhance efficiency in their production process.
Acharya said the market has started picking up pace in January after some uncertainty in April-June.
'We are seeing investments come from public and private entities into core domains like infrastructure, but we're also seeing a lot of manufacturing move from segments that were being imported earlier like consumer electronics. Previously, companies other than European entities, would largely get products manufactured in East Asia. Some of that volume is now moving to India,' he said.
The company claims to have seen a big increase in business from outside of India and clients are looking to increasingly move some manufacturing to India.
'At least 90 per cent of our business comes from India whereas 10 per cent of our business comes from international entities primarily dominated by the US. In terms of segment of business, around 85 per cent of the business comes from the industrial segment while 15 per cent comes from consumer business.
'We expect the consumer business to account for 30 per cent of the revenue in the near term while the contribution from the international business could easily go up to 20-25 per cent,' Acharya said.
Founded in 2018, Zetwerk provides manufacturing in four segments-- industrial upstream, industrial downstream, international, consumer and supply ecosystem -- which are further divided into sub-segments like consumer electronics, precision and non-precision manufacturing, apparels, defence and aerospace etc.
The company is getting most of the traction from US-based companies and most of the orders are precision manufacturing requirements particularly towards medical devices.
Acharya said the company is also seeing good traction in the field of space research and aerospace categories. PTI PRS ANU