Data, SOPs crucial for factories of future in India: Karkhana.io Founder Sonam Motwani
Speaking at TechSparks Mumbai, Sonam Motwani, Founder of Karkhana.io—a B2B on-demand manufacturing startup, talks about the ways to build factories for industry 4.0 and the emerging sectors in the manufacturing space.
The dearth of managerial and technical talent as well as a lack of a data-driven approach is a significant hurdle in the growth of micro-enterprises in the manufacturing sector, Sonam Motwani, Founder of B2B on-demand manufacturing startup
, said.Motwani, who was speaking at YourStory's flagship event TechSparks in Mumbai, highlighted that while over 80% of establishments in the manufacturing realm are micro-enterprises, they lack the necessary resources.
She emphasised the prevailing reluctance to a data-driven approach in India, where decisions are predominantly based on experience rather than data. Despite the industry's vision of Industry 4.0, MSMEs struggle to capture basic data, hindering their understanding of demand and machine productivity.
Motwani recounted the early days when Karkhana.io faced challenges convincing establishments to adopt a standard operating procedure for manufacturing, emphasising the need to demonstrate the platform's benefits through on-ground efforts.
The enhancement of data richness, according to Motwani, is pivotal for driving improvements in the manufacturing sector.
“At Karkhana.io, we are creating an operating system for MSMEs, enabling them to access demand from larger original equipment manufacturers (OEMs) globally. This approach not only brings standardisation but also enhances output quality while establishing a systematic sourcing system,” Motwani said.
Amid the Industry 4.0 era, where future factories are envisioned to be technologically advanced and digitally interconnected, a report by Rockwell Automation reveals that MSMEs (micro, small, and medium enterprises) allocate 35% of their budget to tech adoption. However, a considerable gap in tech adoption remains at the grassroots level.
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High capital costs and challenging access to capital further impede the growth of these enterprises. Despite their aspirations for expansion and adopting tech, MSMEs encounter time-consuming efforts due to resource constraints.
Emerging manufacturing sectors in India
MSMEs stand as the cornerstone of economic growth, constituting a staggering 6.3 crore businesses and contributing over 36% to the manufacturing output. Despite being a vital sector, responsible for approximately 16% of the GDP, MSMEs grapple with innovation challenges.
Motwani also spoke about emerging areas in manufacturing. India, which has historically had a strong presence in automotive and textile manufacturing, is experiencing significant growth in IoT, IT hardware, and electronics with high Compound Annual Growth Rates (CAGR). Even the automotive industry is undergoing a transformative shift from internal combustion engines to electric vehicles.
The founder concluded by highlighting the value generation potential in converting components into finished products, envisioning not just commoditised processes but also lucrative margins for all participants in the ecosystem.
Edited by Affirunisa Kankudti