Business-to-business (B2B) manufacturing services marketplace Zetwerk on Thursday said it has acquired three companies for Rs 100 crore (around $13 million) in a bid to strengthen its industrial verticals in the oil and gas, aerospace, defence and infrastructure component segments.
Zetwerk has acquired Pinaka Aerospace Solutions, bought a majority stake in Sharp Tanks and a 100% stake in the Wardha fabrication unit of listed company Wheels India.
Pinaka Aerospace acquisition will give Zetwerk a portfolio of clients across electronic communication products in the aerospace and defence industry, such as radar systems, avionics, radars and other communication devices. Zetwerk expects the deal will help it cater to the manufacturing needs of public and private sector enterprises, it said.
Pinaka provides communication solutions to Indian defence units, government research facilities like DRDO and ISRO and enterprise clients like Carlisle, Tata, AVTEC, BEL, and HAL among others.
The Sharp Tanks acquisition will increase Zetwerk’s exposure to the oil and gas industry. Sharp Tanks brings in design, fabrication, commissioning of equipment and structural works to serve clients in the oil and gas, petrochemicals, fertilizers and chemicals industries.
Interestingly, Zetwerk says it will become one of the seven companies in the country operating in this space after buying a majority stake in Sharp Tanks.
The acquisition of Wheels India’s Wardha fabrication unit will allow the manufacturing and supply chain solutions company to enter the market of manufacturing critical fabricated parts for power, roads and railways.
“The Indian Industrials ecosystem, including aerospace and defence manufacturing, has evolved radically, emerging as a strong contender for its global counterparts. However, we believe this is just the beginning and we are excited to partner with entities that share our vision to drive India’s self-reliance in manufacturing," said Amrit Acharya, co-founder and chief executive officer, Zetwerk Manufacturing Businesses.
Bengaluru-based Zetwerk, operated by Zetwerk Manufacturing Businesses Pvt. Ltd, was set up in 2018 by Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma and Vishal Chaudhary. The company connects mid-to-large original equipment manufacturers from India and Southeast Asia with firms that require custom products and machine parts.
The startup has forged partnerships in segments such as precision parts, capital goods and consumer goods. The product categories it serves include pre-fabricated structures for infrastructure projects, sheet metal for electric vehicles, precision parts for aerospace and assembly lines for consumer durables.
In August 2021, Zetwerk entered the coveted unicorn club after raising $150 million in a Series E funding round at a $1.33 billion valuation. Before this, it raised $120 million in a Series D round led by US-based Greenoaks Capital and Lightspeed Venture Partners earlier in February. The company had raised $21 million in a Series C funding round in July 2020.
In an interaction with Mint last year, founder and CEO Amrit Acharya stated about taking the inorganic growth route with 2-5 acquisitions.
