Fixing India’s Fragmented Manufacturing Backbone
Walk into a small factory in India, and the inefficiencies are visible. Idle machines. Uncertain raw material supply. Cash flow pressure. Repetitive product lines that squeeze margins.
Small and medium enterprises form the backbone of India’s manufacturing economy. Yet fragmented supply chains and weak procurement systems have held many back for decades.
Rawmart, founded in 2021 in Pune, set out to change that equation.
From Procurement Gap to Production Network
Rawmart was founded by Shrenik Bora, Saurabh Rana, and Tejas Changede after they observed that capable factories were losing out not because of skill gaps, but because of broken systems.
They saw idle capacity, unreliable procurement, and financial strain. They built Rawmart to address those structural constraints.
In three years, the company has delivered more than one million steel parts while maintaining minimal to zero rejection rates. That consistency stands out in a sector often defined by uneven quality.
More Than a Supplier
Rawmart provides raw materials across India, aggregates credit to ease cash flow pressure, unlocks spare SME capacity through contract manufacturing, and develops custom machines to improve safety and productivity.
The model integrates in-house research and design with technology-enabled procurement. By combining data, predictive modelling, and structured quality plans, the company claims it can move from concept to finished product nearly three times faster than traditional players.
Its platform anticipates demand, matches it with supply, and automates sourcing decisions. Spare capacity across small factories is pooled and allocated efficiently, reducing downtime and cost leakage. Technical queries are addressed within 24 hours, and modular manufacturing systems standardise quality.
Rawmart Labs and Innovation Push
As the company scaled, it noticed a recurring issue. Many SMEs plateaued because they manufactured identical products to competitors. Margins eroded over time.
Rawmart responded by launching Rawmart Labs, an innovation hub focused on custom engineering, automation, and market-first product development.
The lab identifies gaps in demand, designs bespoke solutions, and automates hazardous or inefficient processes. It also invests in sustainability initiatives such as recycling scrap metals and plastics, and developing greener production systems.
The approach shifts SMEs from replication to differentiation.
Scale Without External Capital
Rawmart serves over 140 clients across sectors, including infrastructure, railways, pharma, FMCG, solar, and heavy engineering. Its footprint spans 14 states and 250 pin codes.
The company has remained bootstrapped since inception. It recorded $3.5 million in revenue in its first year. Revenue more than doubled to $7.8 million in the second year. By FY23–24, revenue crossed $10 million. The company reports profitability from day one.
Competing in a Fragmented Market
India’s supplier base remains deeply fragmented. Credit cycles strain smaller firms. Quality inconsistency affects scale.
Rawmart addresses these constraints by unifying procurement, credit access, manufacturing capacit and product innovation on one platform. Traditional traders and marketplaces typically focus on transactions. Rawmart positions itself as a production and growth partner.
What Comes Next
The company plans to digitise SMEs through ERP systems, IoT integration, and robotics. It aims to build integrated manufacturing ecosystems within industrial clusters, where supply chains and production systems operate in synchronised networks.
Expansion into selected markets in Asia and Europe is also on the roadmap, alongside deeper partnerships with multinational corporations.
India’s manufacturing base has long suffered from fragmentation. Rawmart’s model attempts to consolidate capability, unlock idle capacity, and embed innovation into small factories. The outcome will depend on execution at scale, but the early numbers suggest traction in a sector that rarely moves quickly.
