Zetwerk's Strategic Move into IT Hardware Exports

In a bold move to navigate through the uncertain waters of global tariffs, Zetwerk, a manufacturing startup, has inaugurated its new electronics manufacturing plant near Chennai. This facility is not just another addition to the company's portfolio but a strategic step towards exporting IT hardware components within the next two years. The plant is set to produce consumer durable components for air conditioners, refrigerators, and soon, IT hardware components such as laptop and server parts.

Chennai: The New Hub for Exports

With more than 10 manufacturing facilities, seven of which are dedicated to electronics, Zetwerk is positioning Chennai as a pivotal hub for its export operations. The electronics sector, contributing approximately 15% to its business, is the fastest-growing segment for Zetwerk. The company's current exports, predominantly to the US market, account for around 25% of its business. However, in light of tariff threats, Zetwerk is exploring opportunities in the European market as a strategic hedge.

Navigating Through Tariff Uncertainties

Amrit Acharya, CEO and co-founder of Zetwerk, acknowledges the temporary pause in IT hardware orders due to tariff uncertainties. "There's a slight pause as stakeholders await clarity on the regulatory environment before making significant capital decisions," Acharya stated. He anticipates that this clarity will emerge in the coming months, during which Zetwerk continues its dialogue with customers. Furthermore, Acharya revealed that preparations for an initial public offering are underway, with plans to go public within the next 15 to 24 months.

Expanding Capacity to Meet Demand

Recognizing the dearth of capacity in the electronics industry within the country, Zetwerk aims to service 20% of its business from its own plants, up from the current 15%. This expansion is a testament to Zetwerk's commitment to scaling its operations and meeting the growing demand for electronics manufacturing in India and beyond.