Zetwerk eyes IT hardware exports amid tariff uncertainty

TIRUVALLUR: Manufacturing startup Zetwerk opened its electronics manufacturing plant near Chennai on Saturday and plans to export IT components in two years amid US tariff uncertainty. The facility will make consumer durable components for air conditioners and refrigerators among others.

The plant also plans to make IT hardware components such as laptop and server components in a year. The company expects Chennai will be a hub for exports.

The startup, which initially focused on manufacturing aggregation with asset-light model now has more than 10 manufacturing facilities out of which seven are for electronics. Electronics contributes roughly about 15% of its business, which reportedly had an operating revenue of Rs 14,436 crore in 2023-24 fiscal. It works in renewables, aerospace and defence sectors as well.

Amrit Acharya, chief executive and co-founder of Zetwerk, said electronics is the fastest growing business and the company's current exports consists of around 25% of its business which have been predominantly to the US market. It is exploring the European market as a hedge in view of tariff threats.

Momentum in IT hardware orders paused briefly due to the uncertainty over US tariffs, he said, “There is a little bit of pause because everyone needs to know what the regulatory environment is before they take big capital decisions. So, I think that clarity should come in the next month or two. In the meantime, conversations are going on with customers,” he said.


Acharya said the preparatory work for an initial public offer was under way and it would happen in a 15 month to 24 month timeframe. He said in industries like electronics, there was dearth of capacity in the country. Zetwerk plans to service 20% of its business from its own plants from 15% at present.


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