Zetwerk Acquires Three Firms In An INR 100 Cr Deal

B2B manufacturing unicorn Zetwerk has acquired three businesses to strengthen its different verticals, for a total of INR 100 Cr.

For the oil and gas vertical, it has acquired a majority stake in 30-year-old SharpTank; for aerospace, defence, and infrastructure components, it bought Pinaka Aerospace Solutions; for providing fabric solutions, it has acquired Wheels India’s fabrication unit, The Wardha.

Zetwerk claims to provide communication solutions to India’s defence units and government research facilities including DRDO and ISRO. This way, the Bengaluru-based startup plans to merge synergies with Pinaka Aerospace and take India’s aerospace manufacturing global.

SharpTanks is widely recognised as one of the leading procurement, fabrication and construction companies in India, having extensive design capabilities as well. It serves clients in the oil & gas, petrochemicals, fertilisers, and chemicals industries.

Zetwerk cofounder and CEO, Amrit Acharya has stated that to expand further in niche verticals and grow its business, Zetwerk will be acquiring more homegrown manufacturing companies.

The Indian government’s push for ‘Make In India’ within the manufacturing sector is one of the major reasons why startups such as Zetwerk are becoming the buzz. Fuelled by the domestic demand for industrial equipment, one of the sectors seeing push is the defence applications and spare parts segment.

“We believe this is just the beginning, and we (want) to partner with entities that share our vision to drive India’s self-reliance in manufacturing,” added Acharya.

Founded in 2018 by Acharya, Srinath Ramakkrushnan and Vishal Chaudhary, Zetwerk is a manufacturing services platform. It connects manufacturing companies with vendors and suppliers for customised products, industrial machine components and other equipment.

The startup became a unicorn in August 2021, after raising $150 Mn from D1 Capital Part­ners, to majorly grow its several business verticals. It also raised another $210 Mn in December 2021 and later was under fire as the income tax department raided the company premises on suspicion of tax evasion.

Amid plans to position Indian manufacturing for global OEMs, Zetwerk’s ShapTank acquisition marks its entry into the oil and gas industry. Mumbai-based SharpTanks provides design, fabrication, commissioning of equipment and structural works to serve clients in the oil and gas, petrochemicals, fertilisers and chemicals industries.

With this acquisition, Zetwerk will become one of the seven companies in the country operating in the oil and gas equipment manufacturing space, the cofounder told PTI.

The Wardha fabrication unit of Wheels India will further allow Zetwerk to tap into a $1.5 Bn market comprising the manufacturing of critical fabricated parts for power, roads and railways.

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