Zetwerk Manufacturing Records Nearly Three Times Growth in Revenue

Bengaluru, India – Zetwerk Manufacturing Businesses Pvt Ltd, a capital and consumer goods maker, reported a nearly threefold increase in revenue for the financial year 2020-21, despite the disruption caused by the Covid 19 pandemic. The company’s revenue from operations for the year was INR 949 crore, up from INR 360 crore in the previous year ended March 31, 2021. Net cash used from operations decreased from INR 115 crore in the year ended Mar 31, 2020, to INR 80 crore in the year ended March 31, 2021. The working capital intensity of the business has reduced substantially from 35 percent of turnover to 10 percent of the total turnover during the period. Furthermore, the company moved a step closer to becoming profitable as its losses narrowed to 2 percent of the revenue as against 8 percent in the year-ago period.

Following the relaxation of Covid-19 restrictions last year, the company accelerated deliveries ahead of the pandemic's second wave, as customers preferred virtual monitoring and social distancing in project management. The company’s proprietary technologies significantly reduced the need for physical factory visits and provided clarity and transparency in business through an in-house platform, making it an appealing proposition for customers to do business with us.

Continuing on the company’s position as being well-positioned to capitalize on growth opportunities and hopeful of even better growth in FY22 due to increases in public and private spending across infrastructure, consumer durables, electronics, aerospace, and renewable energy, Amrit Acharya, Chief Executive Officer, Zetwerk Manufacturing Businesses, commented, “Our business performance during 2020-21 is testament to the resilience and strength of Zetwerk’s core value proposition, which is to help global companies bring their products to market faster, cheaper, and with the highest quality. In a challenging year, not only have we grown incredibly well, more importantly, we have done it in a very capital efficient manner, reducing the working capital requirements of the company by 75 percent. Moving forward, we will continue to deepen our focus on precision manufacturing, capital goods and consumer products, and continue delighting our customers who are finding Zetwerk as their preferred conduit for solving manufacturing pain points.”

The company’s future growth is supported by an ever-increasing order book of INR 4,500 crore, which provides predictability in business for the remainder of the year. Srinath Ramakkrushnan, Chief Operating Officer, Zetwerk Manufacturing, explained, “Our order book is a testimony to Zetwerk’s very well-diversified industrial and consumer segments. In the consumer segment, Zetwerk is rapidly expanding its footprint across consumer electronics and apparel segments through aggressive customer acquisitions across e-commerce, modern retail, and D2C consumer brands. Today, more than 500 enterprise customers and several Fortune 500 organizations trust Zetwerk with their contract manufacturing requirements. Over 80 percent of Zetwerk’s invoicing revenues today come from repeat and regular customers as we provide strong on-time delivery, competitive pricing, wide range of manufacturing capacities and capabilities. We will continue to pursue a world-class manufacturing eco-system that creates reliability for all the stakeholders.”

Image Source: Zetwerk Manufacturing Businesses Pvt Ltd

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