Indian Manufacturing's Best Kept SECRET Revealed

0:03 hello hi sir delivery [Music] delivery [Music] oh hey [Music] hello sir my delivery yes sir I've sent you

0:50 the tracking detail it should be reaching in your doorstep in exactly 30 minutes when we talk about today's business scenario the most noticeable change in the entrepreneurial environment is the rise in Tech enabled services that are making our lives easier think about the times we live in you can order and receive groceries in a matter of 10 minutes or get a great deal on the mobile that you've been eyeing for a while from an e-commerce store but have you ever wondered how those items get delivered to you on time and easily are you curious about what goes on behind the scenes to have your desired items reach you on schedule the notification the restaurant has received their order and will be delivered in 35 minutes ever wondered how they deliver in the

1:35 promised time the answer is the use of technology in Supply Chain management that cuts out inefficiencies while the increased use of technology has shaped India's Services sector well and made the country a superpower and Digital Services there is one company that is replicating this in the hardcore complex world of traditional manufacturing imagine this the Indian railways places in order just like we place an order on zomato to construct a Railway Bridge and imagine they receive a notification sit back and relax your order will be delivered in 45 days yes this is actually happening right now just like we are a zomato the Indian Railway is ordering material and it is being done by an Indian company based out of Bangalore which is a profitable

2:21 unicorn very very hard to find a True Unicorn and which is bringing out the Deep capabilities of Indian manufacturing onto the global economy it is the Hidden Gem in the Indian startup ecosystem silently pursuing and achieving its dream of making Global manufacturing transparent and as seamless as placing orders for groceries on delivery apps started by Amrit acharya srinath ramakrishnan Vishal Chaudhary Rahul Sharma and Ankit fatehpuria in May 2018 the Indian unicorns network has an absolutely inspiring story and a profitable one zetwork started off by building an in-house software they started out like that to streamline B2B manufacturing Supply chains enabling companies to interact with their manufacturing suppliers using this tool however

3:08 customers their original equipment manufacturers and their oems kept inquiring about more suppliers and constantly asked that work to find new suppliers for them they realize that most oems are looking for long term reliable and trusted suppliers in order to make their business operations smooth and efficient they often faced order delays that would set back the project delivery status this lack of visibility just like we have a lot of visibility through notifications on zomato and swiggy these people didn't have it the lack of visibility led to a trust deficit between a manufacturer and supplier and is a massive problem in India's fragmented manufacturing ecosystem zetwork saw a massive opportunity here and pivoted out to build an entire Marketplace of suppliers so that's how they started in short they

3:53 started to do matchmaking between customers and suppliers they became a Marketplace filter or counter numbers Excel

4:40 hi sir were you looking for a steel manufacturer and you do 10 discount I give a 20 discount give you 30 discount s how this works is that a customer approaches Network to find the best suppliers in India in a particular domain for example steel fabrication Network assesses the customers requirements and matches it against a pool of 10 000 suppliers on their platform so they went door to door got the suppliers put them on the platform these supplies have been carefully shortlisted and onboarded and these people do physical verification credential verification they take in 300 data points because as you know this industry it's been known for lack of transparency right so these guys had to come in and build a system that was transparent enough here also lies a

5:27 lesson for upcoming startup Founders people who are very stringent about their business ideas and averse to making pivots because like I told you network starters something else eventually ended up becoming a Marketplace these people don't end up making it big network is actually a great example of how to put the customers need at the Forefront of a business and find the product Market fit accordingly I mean they pivoted from their original SAS company to a Marketplace for manufacturing within weeks of receiving giving their first investment check in fact I don't even know how you'd go back your investors a week later and say hey we are pivoting completely because we think this is where the opportunity is you just taken money from investors and immediately two weeks later you've changed the business model it's very scary to do right after the first pivot zetworks business picked up order started to flowing but at the

6:13 same time the number of complaints from customers also increased most of the complaints were about suppliers not being prompt and punctual or unable to deliver the project as per the promise made earlier those Network made yet another pivot it realized that merely matchmaking won't help the company in the long run and as the business would expand and the customer complaints would keep growing its brand and reputation will take a hit although it wasn't like a insane number of complaints Network started to listen to customer feedback deeply and realize they wanted them to manage the entire order instead of just making a match this is where Network pivoted for the second time and found its product Market fit that really triggered its growth story zetwork now functions as a supplier to large oems and customers who place their orders with that work and the Bangalore based

7:00 company has those orders executed through their network of verified suppliers for whom they themselves are a customer as zetworks business expanded it realized while India has very deep Supply capabilities traditional manufacturing sectors it lagged behind its peers in manufacturing of Highly complex items such as consumer electronics Aerospace and defense and even renewable energy so Network decided to go even deeper into the industry and jumped headlong into manufacturing as well they set up a factory Noida to make wearables right like your smart watches they spend 100 crores for three Acquisitions which are pinaka Aerospace sharp tanks and structurals and Warda fabrication the idea was simple Network had created and fulfilled demand making sure there's much higher customer trust right they built distribution and Trust

7:47 among customers see sometimes when a customer places an order for millions of dollars they want visibility complete visibility into the process with zomato is spending 500 rupees and you want to know where your driver is at every given point of time why not if you're spending millions of dollars on steel or something right they want to know exactly what is going on with it so in the same way the buyer wants to know whether the item has been fabricated or whatever stage it's at in real time network has basically provided the much needed visibility and brought transparency to the manufacturing process from end to end with their project management tools and Manufacturing capabilities in a pre-setwork world the supplier discoverability process would take two to three weeks and then negotiations on deliverables cost etc etc which is added to the Project's turnaround time and this is a good thing to know if you're in the business case study world right

8:33 this entire process is two months long but in a post Network world this is turned on its head a text solution not only performed in industrial Miracle but also equipped its customers with Ali updates every hour starting with generating purchase orders prototyping down to Q see quality control and delivery in addition to this they also implemented a concept called parallel manufacturing where they break down one complete project with multiple suppliers to minimize delivery types so instead of me ordering 10 things from 10 different supplies I just give Network an order they split it among suppliers it's like on Amazon you're going and saying I want you know the entire thing for a studio right just give me or just order all the items involved in you know coming up with the studio right so Amazon comes up with the mic Amazon tells you this mic should be bought Amazon tells you this background should be bought that's what

9:18 network does a process that would take a year's time for looking around and using just one supplier is now slashed to one-fifth of that it's pretty dope right order placed foreign [Music] foreign [Music]

10:24 customers okay guys bye as of March 31st 2022 this is the interesting part network has already earned 5 000 crores in Revenue with another 10 000 crores in open order books much larger than any of the case studies we've done so far in fact there are hundreds of times bigger than most of the case studies we've done their revenue jumped six-fold and they recorded an ebitda of rupees 57 crores in 2021 is extremely rare in today's startup ecosystem and it's not just domestic orders they're bringing a lot

11:10 of Foreign Exchange to India as well in fact their International Revenue was five percent I think last fiscal it's gone up to 16 with us being the largest International customer network has basically moved out the supply chain requirements over 300 global companies from neighboring countries to India these companies had no prior experience of sourcing from India because of preconceived notions this means while network is making a real addition to India's GDP it's also significantly improving the standards and reputation of Indian manufacturing to meet the quality levels to be competitive at Global levels one interest thing I've seen about jet work is that they're playing across the stack everything from wearables to a parallel to electronics even your favorite headphone brand which was earlier made and imported from China now is made by Zed work right here in India in a post-pandemic economy as a

11:57 matter of fact Network also backed a 126 crore order from lnt for the Mumbai Ahmedabad bullet train Corridor which is the first high-speed Railway project implementation across the 12 planned in India zetok is truly a hidden unicorn in India's economy and startup ecosystem in particular their attention to detail and assets of problems ability to Pivot multiple times and their in-house Suite of many project management softwares Powers their growth and this can be seen physically in the objects in utility we buy and use in India today the physical products India's manufacturing industry was always known for their lack of transparency and that's something that zetwork came out and changed who knows there might be a bit of zet work in the clothes that you're wearing the water that you drink and the flight that you take who knows what is network is

12:43 holding up its sleeve or what rabbit they will pull out of the many hats they wear whatever it is this is one organization that promises and delivers what would be interesting to see is what they do next