Bengaluru-based manufacturer of industrial and consumer products Zetwerk Manufacturing Businesses is looking to expand its presence in the US, backed by transformer orders worth around ₹2,000 crore for data centers.
Amrit Pratik Acharya, Executive Director, Managing Director, Chairperson and CEO of Zetwerk, said the company has secured significant orders for transformers used in US data centers. These orders are expected to translate into revenue in the coming period.
“We have won around 2000 crores of orders for a single product last year,” Acharya said, referring to the company’s US data center business.
Nearly 30% of Zetwerk’s manufacturing business revenue comes from the US market. The company plans to continue investing in the region as demand for power equipment rises alongside the expansion of AI and data center infrastructure.
However, the management has not specified a target for the contribution of international business to overall revenue.
Alongside its expansion plans, Zetwerk is looking to strengthen its balance sheet through debt repayment.
The company plans to use around ₹2,150 crore from the fresh issue proceeds of its initial public offering (IPO) to repay debt, with the remaining funds earmarked for growth opportunities, including potential acquisitions.
Zetwerk Manufacturing Businesses’ ₹5,012 crore initial public offering (IPO) opened for subscription on October 15. The issue has a price band of ₹143–₹151 per share and comprises a fresh issue of ₹2,830 crore and an offer for sale (OFS) of ₹2,182 crore.
Ankit Fatehpuria, Chief Financial Officer of Zetwerk, said the company had debt of around ₹2,800 crore and cash of approximately ₹3,300 crore on its balance sheet as of March.
The management said the proposed repayment would help reduce debt and strengthen the company’s financial position as it enters its next phase of growth.
Zetwerk has also acknowledged that cash flow from operations has remained negative in recent years. Acharya said the company had prioritised business expansion and profitability while building its manufacturing platform, but improving cash generation would be an important focus going forward.
“Cash flow is one of them. That will be the focus from here onwards,” Acharya said.
The company was established in 2018 and has grown from a start-up to a business with revenue of around ₹16,000 crore. Its adjusted EBITDA increased to ₹400 crore last year from ₹100 crore two years earlier.
Zetwerk operates a hybrid manufacturing model that combines its own facilities with a network of partner manufacturers. The company operates 25 plants and works with around 7,000 partners, many of them small and medium enterprises (SMEs).
Its technology platform connects large industrial customers with manufacturing capacity while managing quality, delivery timelines and pricing. Its product portfolio includes transformers, solar modules, wind turbines and motherboards.
The company said around 90% of its revenue comes from repeat customers, including large domestic and international businesses.
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Zetwerk eyes US expansion as ₹2,000 crore data center transformer orders boost growth outlook
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