Manufacturers these days are not new to automation. Even since the first steam-powered engine was invented, the manufacturing industry has been highly focused on offering top-notch products, and most importantly, through automating processes, reduced operating expenses, and increased quality for more than a decade. Same as the automation, manufacturers have now started deploying artificial intelligence and analytics to data to perk-up efficiency, employee safety, and product quality. In a survey report, Deloitte recently stated that 93 percent of firms now believe that AI will play an imperative role in boosting innovation and growth. With the increasing usage of AI, industry is also facing a lot of challenges such as shorter time to market deadlines, increasingly complex products, and strict quality regulations and standards. In a candid interaction with Sonam Motwani, CEO and Founder of Karkhana.io, we came to know about how AI integration is transforming the manufacturing industry, how to boost component manufacturing ecosystem in India, the solution required, and various other aspects of the manufacturing sector.
Q. Kindly elucidate how karkhana.io is aiming to transform the manufacturing industry in India? How AI integration in Karkhana.io‘s digital offering is solving inefficiencies? Is your focus only India or global?
Karkhana.io is dedicated to transforming the manufacturing industry in India by leveraging advanced technology including AI integration to address inefficiencies. Our goal is to streamline the supply chain and procurement for companies. By integrating AI in our digital platform, we are able to enhance supplier selection to identify the best suppliers and offer real-time tracking. This not only reduces lead times but ensures high-quality. While currently we have a strong presence across India, we have been extending to the global market. We are already serving customers in North America and Europe and are actively expanding into the export market across various regions.
Q. Speaking of electronic or automotive components, India and various parts of the world including Europe and USA are facing a huge challenge in boosting manufacturing in front of China and Vietnam. Where is the actual impediment?
The challenges of manufacturing electronic components in India are multifaceted. This could be a lack of established and integrated supply chain to specialized infrastructure which are essential for cost effective production. In order to boost component manufacturing, India requires skilled labor, government incentives and infrastructure to enable the environment for manufacturers.
Q. What needs to be done by the government to grow component manufacturing? Do you want to highlight anything specific to the government? According to various companies, the price of finished electronic products will never come down unless the component ecosystem is boosted. Do you believe this statement? Kindly elucidate.
While the Government has taken steps to boost electronics, EVs and semiconductor manufacturing through schemes like PLI, there is more that needs to be done to stimulate component manufacturing. Specific and specialized incentives or subsidies to encourage component manufacturing capabilities, R&D as well as skill development. Additionally, creating a robust ecosystem of suppliers is crucial to the growth of component manufacturing. High prices for components are often due to lack of economies of scale or limited competition. A robust ecosystem involving multiple suppliers can create price competition and drive down costs. Only by investing in component manufacturing domestically can we reduce our reliance on outsourcing from China or other countries.
Q. When was karkhana.io formed? How have you changed your business strategies since the pandemic to become globally competitive?
Karkhana.io was founded in the year 2018. We continued to work through the pandemic and delivered on many projects even during that time. Since then however, we've increased our focus on developing our tech product and built a larger on-ground team with specializations in various target industries. Alongside this, we have continued to grow our wide network of certified and vetted suppliers. This competency that we have developed in turn helps us confidently take on customers from international markets and compete with similar companies in different nations.
Q. What are some of the unique solutions, which you think will be a game-changer for the manufacturing industry? What is your roadmap for the coming seven to ten years? How are you planning to revolutionize the manufacturing ecosystem?
Being industry agnostic, we are able to provide solutions across multiple verticals in the manufacturing industry. From small batch to large volume, box build and contract manufacturing solutions we can tailor fit our offerings for any requirement. With specialization in countless manufacturing processes, our holistic approach of all end-to-end solutions under one roof sets us apart. Over the next decade, we intend to focus on innovation and growth. Our expansion into the global markets will help us achieve our ambitious revenue targets. We continue to diversify our customer base across various industries while forging strategic partnerships for sustainable and long-term growth. Additionally, our commitment to digitizing hundreds of thousands of MSMEs by granting them access to our manufacturing OS will help create jobs and generate value in the manufacturing sector. Our vision is to be at the forefront of transforming the manufacturing industry both in India and the globe.