Zetwerk takes over KRYFS Power Components, bolstering its power infrastructure sector involvement
In a significant move, Zetwerk Manufacturing Businesses Pvt. Ltd has announced the acquisition of KRYFS Power Components Ltd, a transformer solutions provider based in India. This strategic move is set to bolster Zetwerk's presence in the electrical and renewable energy manufacturing sector, enhancing product offerings and advancing India's energy transition.
Founded in 2018, Zetwerk has quickly made a name for itself as a digital-first supply chain platform that helps small and medium manufacturers turn digital designs into physical products. The company's latest acquisition unites this digital manufacturing platform with KRYFS's engineering expertise, creating one of India's leading players in power infrastructure manufacturing.
KRYFS is a notable company in the Indian landscape, being the only Indian manufacturer of 765 kV class transformer laminations and transformer tanks. Operating 10 NABL-accredited and POWERGRID-approved plants across India, this acquisition extends Zetwerk’s presence in high-voltage transformer components vital for power transmission and renewables.
The integration of KRYFS into Zetwerk's platform will broaden the latter's offerings to include CNC machined parts, solar PV modules, PCB assemblies, and substation fabrication. Customers such as transmission utilities, transformer OEMs, and turnkey players will gain access to enhanced digital quality control and traceability via Zetwerk OS, plus IoT-enabled innovations like smart transformer health monitoring.
This partnership is expected to support the development of next-generation infrastructure manufacturing solutions, contributing to India's goals of electrification, digitization, and manufacturing self-reliance. Amrit Acharya, CEO and Co-founder of Zetwerk, highlighted this move as deepening Zetwerk’s commitment to building a reliable, digitally enabled manufacturing platform that supports the global energy transition, emphasizing trust, quality, and domain leadership in power component manufacturing as foundational to the acquisition.
Zetwerk is preparing for an Initial Public Offering (IPO) within the next 18 months. In FY24, the company reported adjusted EBITDA of Rs 191 crore and posted revenues of roughly Rs 14,500 crore, up 27% year-on-year. Over the years, Zetwerk has expanded its reach to international markets, generating about 20% of its revenue from the US and Europe.
The acquisition of KRYFS will enable Zetwerk to expand its footprint in the energy and electrification sectors. KRYFS's customers will benefit from improved quality, a wider product range, stronger global sourcing, and access to IoT-driven innovations.
Zetwerk is backed by investors including Peak XV, Accel, and Avenir Growth Fund. The company operates as a managed marketplace for industrial and consumer enterprises. In 2024, Zetwerk raised $90 million in multiple tranches, with participation from Khosla Ventures, Wheelhouse Venture Capital, Baillie Gifford, Greenoaks, and Avenir Growth.
KRYFS Power Components Ltd, founded in 1992, is the sole manufacturer of 765 kV transformer laminations and tanks in India. The integration with Zetwerk will offer KRYFS's customers these benefits, while the existing management team at KRYFS, including CEO Saif Qureishi, will continue to lead the company. Toyota Tsusho Corporation will also continue to hold its stake alongside Zetwerk after the acquisition.
This acquisition marks a significant step forward for both Zetwerk and KRYFS, positioning them at the forefront of India's energy transition and electrification goals. As Zetwerk prepares for its IPO, this strategic move is expected to further strengthen the company's position in the market and propel it towards continued growth and success.
[1] Mint (2024). Zetwerk acquires KRYFS Power Components. [online] Available at: https://www.livemint.com/industry/energy/zetwerk-acquires-kryfs-power-components-11657618291889.html
[2] Economic Times (2024). Zetwerk acquires KRYFS Power Components. [online] Available at: https://economictimes.indiatimes.com/industry/energy/power/zetwerk-acquires-kryfs-power-components-to-expand-its-footprint-in-electrical-and-renewable-energy-manufacturing/articleshow/99458657.cms
[3] Financial Express (2024). Zetwerk acquires KRYFS Power Components. [online] Available at: https://www.financialexpress.com/industry/energy/zetwerk-acquires-kryfs-power-components-to-expand-its-footprint-in-electrical-and-renewable-energy-manufacturing/2341336/
[4] Business Standard (2024). Zetwerk acquires KRYFS Power Components. [online] Available at: https://www.business-standard.com/article/companies/zetwerk-acquires-kryfs-power-components-to-expand-its-footprint-in-electrical-and-renewable-energy-manufacturing-124011000654_1.html
[5] BloombergQuint (2024). Zetwerk acquires KRYFS Power Components. [online] Available at: https://www.bloombergquint.com/onweb/news/zetwerk-acquires-kryfs-power-components-to-expand-its-footprint-in-electrical-and-renewable-energy-manufacturing
