Zetwerk IPO: This ‘Zomato-style’ manufacturing marketplace plans to raise ₹5,012 crore; issue opens on October 15

The company connects original equipment manufacturers (OEMs) like CG Power, NTPC Renewable Energy, DRDO, NALCO and others with a vast network of third-party suppliers that have idle manufacturing capacity.

Zetwerk Manufacturing IPO key details

About Zetwerk Manufacturing Business

Incorporated in December 2017, Zetwerk Manufacturing Businesses aggregates third-party production capacity and selected owned facilities into what it describes as a “universal factory.”

The company’s platform serves industries including utilities, renewable energy, consumer electronics, artificial-intelligence infrastructure, aerospace, space and defence, oil and gas, and industrial automation. Since incorporation, the company has delivered products and raw materials representing a cumulative gross merchandise value of ₹74,374 crore.

Zetwerk Manufacturing coordinates design, supplier selection, production planning, quality control, logistics, customs and documentation through Zetwerk OS, its proprietary technology platform. Zetwerk OS processes engineering drawings, matches orders with supplier capabilities and capacity, generates production plans, and monitors execution and quality across facilities, while operational responsibility for the final product is with the company.

Production can take place from multiple suppliers at the same time, which helps to minimise dependency on one particular production plant. The system also accumulates supplier-performance and production data from completed orders, which management uses to refine future supplier selection and execution.

The operating network comprised 6,979 third-party suppliers across 26 countries and 26 owned manufacturing facilities across India, Spain, the USA and Germany. 15 were acquired, while the remaining 11 were set up by the company. Three manufacturing facilities, one of which is a new solar module plant under construction as of the RHP date. The owned facilities mainly undertake assembly, finishing and specialised manufacturing where execution control, certification or proximity to customers is important. The capacity utilisation varied from vertical to vertical, ranging from 2.9% to 100.4% in FY26.

The customer base includes Siemens Gamesa, Acer India, boAt, NextPower, CG Power, NTPC Renewable Energy, L&T MHI Power Boiler, DRDO, NALCO, Indian Oil, Mortenson, Nordex Acciona and the Indian Air Force. Revenue from repeat manufacturing business customers was 80.1% in FY26, against 78.1% in FY24; median net revenue retention during FY23 to FY26 was 128.8%.

Zetwerk Manufacturing operates through two key segments. The manufacturing business supplies products through third-party suppliers and owned facilities, while the ecosystem business, branded Terra91, aggregates industrial commodities and raw materials. Manufacturing Business revenue was 58.9% of FY26 revenue, while Ecosystem Business revenue was 41.09%. Within Manufacturing, Energy Products contributed 69.4%, Precision Products 14.9% and Capital Goods 15.6% in FY26.

Zetwerk Manufacturing Financials

Zetwerk Manufacturing IPO objective

• Repayment of loan: The company will use ₹1,300 crore to repay certain outstanding borrowings availed by the company.
• Repayment of subsidiaries' loan: The company will use ₹860 crore to repay loans availed by the subsidiaries.
• General corporate purposes: Part of the IPO proceeds will be used for general corporate purposes, issue expenses and unidentified acquisitions.

Strengths and opportunities

• Diversified manufacturing platform: Exposure spans energy products, precision products and capital Goods, with both recurring opex-linked components and project-based capex products. This reduces dependence on a single product category, but energy remains the largest manufacturing vertical.
• Scalable supplier and facility network: The FY26 network of 6,979 third-party suppliers across 26 countries and 26 owned facilities across four countries provides broad process capability and permits parallel production.
• Visibility of orders and customer retention: Manufacturing orders were ₹13,062 crore as of June 30, 2026; repeat customers accounted for 80.1% of the FY26 manufacturing revenue; and the median NRR from FY23 to FY26 was 128.8%.

Risks and threats

• History of losses: The company incurred continuing-operations losses in each reported period and a total restated loss of ₹1,606.1 crore in FY26. Exceptional items and the discontinued civil Infrastructure works business materially affected reported earnings.
• Reliance on external suppliers: Items supplied by external suppliers accounted for 80.46% of the continuing segment’s revenues in the fiscal year 2026. This might be an area of concern since disruptions in any of these areas may impact delivery and profit margins.
• Customer concentration and short-term orders: The top 10 customers accounted for 35.9% of FY26 continuing revenue, while many customer arrangements are short-term purchase orders without minimum-volume commitments. Reductions, deferrals or cancellations can affect utilisation and margins.