Zetwerk is not exactly a household name, but this unicorn, boasting revenues of Rs 11,450 crore as of last year, is among the top four electronics manufacturers in India.<\/p>\n
The startup is capitalising on a notable trend in smart TV sales – fall in collective shipments from top brands like Xiaomi, Samsung, LG and an uptick in the market share of smaller, regional, and online brands.<\/p>\n
Emerging as a key Electronics Manufacturing Services (EMS) player, Zetwerk operates a plant in Haryana that caters to 10 per cent of the country’s overall smart TV production capacity.<\/p>\n
The company aggregates demand through contract manufacturing for eight different brands, thereby building scale while reducing production costs.<\/p>\n
Zetwerk is also in the process of developing design capabilities and establishing a supply chain.<\/p>\n
Flat-panel display manufacturing facility is part of the company’s ecosystem.<\/p>\n
Rahul Sharma, founder of Zetwerk, told Business Standard<\/em>: “The overall smart TV market is around 15-17 million units.<\/p>\n “Our plant has the capacity to cater to 10 per cent of this market.<\/p>\n “We can double our production capacity within a quarter. Depending on the model, we currently manufacture TVs ranging from 24 to 86 inches.<\/p>\n “By November, we plan to produce TVs up to 120 inches.”<\/p>\n According to Counterpoint data, the market share of brands outside the top five sharply increased from 43.2 per cent in 2021 to 57.4 per cent in 2022.<\/p>\n This trend could gain strength further if the reports on Realme and OnePlus reducing or ceasing their TV sales prove to be correct, said sources.<\/p>\n There’s been no confirmation from the companies.<\/p>\n A recent report by IDC highlights a partial recovery for top brands.<\/p>\n It states that the top five smart TV brands regained their market share to 54 per cent in the first half of 2023.<\/p>\n Even so, the focus has shifted to the budget segment, where sub-$200 smart TVs have seen their market share rise from 26 to 39 per cent during the same period, according to IDC.<\/p>\n Sharma explained that Zetwerk focuses on large-scale flexible manufacturing to meet brand needs in a hyper-competitive market.<\/p>\n The company enables small batch production, which is beneficial for evaluating the success of TV models.<\/p>\n He pointed out that Zetwerk’s supply chain is flexible, a capability often lacking among larger manufacturers.<\/p>\n Already a significant player in wearables and hearables with an annual production capacity of 20 million units, Zetwerk is expanding into IT hardware to assemble laptops.<\/p>\n Negotiations are underway to acquire an existing company in this sector.<\/p>\n The company is in talks with major players who have applied to be part of the revised IT hardware Production-Linked Incentive (PLI) scheme.<\/p>\n When asked why the company had not applied for a PLI, Sharma said: “Two years ago, we didn’t meet the eligibility criteria.<\/p>\n “We have grown tenfold in the last two years.<\/p>\n “We didn’t qualify for a PLI in electronics because we didn’t exist in the base year set for the scheme.”<\/p>\n