Zetwerk Manufacturing Businesses announced the acquisition of Pinaka Aerospace Solutions, which specialises in Avionics, Electronic interception and Communication systems.
The current size of the Indian Aerospace & Defence (A&D) manufacturing market is around $11 bn, and it is likely to grow to approximately USD 25 billion by 2025 (including $5bn in exports). Some of the critical drivers for this include: the Indian government’s Make in India push leading to import substitution, solid domestic demand for commercial and defence applications, spares, maintenance and up-gradation of existing equipment. The acquisition opens up an opportunity for Zetwerk in a segment at the cusp of transformation on account of import substitution, system & platform upgrades and promotion of the domestic A&D industry.
Zetwerk has acquired a majority stake in the company through a deal that was a mix of equity and cash.
“The Indian Industrials ecosystem, including aerospace and defence manufacturing, has evolved radically, emerging as a strong contender for its global counterparts,” said Amrit Acharya, Co-Founder and CEO of Zetwerk Manufacturing Businesses.
Zetwerk has also picked up significant majority stakes in Sharp Tanks and a 100% stake in the Wardha factory of Wheels India. The total value of the three strategic acquisitions stands at approximately Rs 100 crores.
The acquisition of Sharp Tanks will increase Zetwerk’s exposure to the Oil & Gas industry. Sharp Tanks brings in design, fabrication, commissioning of equipment and structural works to serve clients in the Oil & Gas, Petrochemicals, Fertilisers and Chemicals industries. With this takeover, Zetwerk will become one of the seven companies in the country operating in this space.
The Wardha fabrication unit of Wheels India’s acquisition allows Zetwerk to tap into a USD 1.5 billion market comprising the manufacturing of critical fabricated parts for power, roads, and railways.