Digitizing

Make in India
Report 2024
State of the Union Report
for India’s B2B and Manufacturing Story

March 2024

Digitizing Make in India Report 2024 1

Digitizing Make in India Report 2024 2
Boston Consulting Group partners with leaders in Early stage investors targeting companies in the Indian
business and society to tackle their most important consumer and enterprise market. Matrix Partners began
challenges and capture their greatest opportunities. in Boston in 1977, and today invests actively in the USA,
BCG was the pioneer in business strategy when it was India and China. Matrix Partners India was established
founded in 1963. Today, we work closely with clients in 2006, and invests across a variety of sectors
to embrace a transformational approach aimed at including consumer technology, B2B, enterprise & SaaS,
benefiting all stakeholders—empowering organizations and Fintech, among others. We look for the best and
to grow, build sustainable competitive advantage, brightest founders and teams. In our experience, the
and drive positive societal impact. quality, passion and commitment of a company’s core
team are more important than any other element
Our diverse, global teams bring deep industry and
functional expertise and a range of perspectives We invest in between seed and series B initially in each
that question the status quo and spark change. BCG company. We like to get to know founders early, ideally
delivers solutions through leading-edge management well before they are ready to raise capital, with a focus
consulting, technology and design, and corporate and on companies primarily targeting the Indian market.
digital ventures. We work in a uniquely collaborative We prefer to be the lead investor. We often invest
model across the firm and throughout all levels of the on our own but also co-invest with other investors
client organization, fueled by the goal of helping our
clients thrive and enabling them to make the world Founders are always first in our eyes, whether you have
a better place. just a nascent idea or are already running a business,
let us help you turn your ideas into reality and
grow your business

Digitizing Make in India Report 2024 3

Matrix B2B, advanced manufacturing
and deep tech portfolio

Digitizing Make in India Report 2024 4

EXECUTIVE SUMMARY

India stands at a cusp of transformation, aiming to grow into a $10 Tn In this report, we have captured our point of view on why we believe
economy over the next decade. By adding $1 Tn every 1.5 years going that India will become a $10 Tn economy in the next decade including
forward, India is forecasted to emerge as the third-largest global actionable insights. More importantly, this report also acts as a guide
economy over the next six years. This incremental growth will primarily for founders looking to solve real-world issues across these sectors,
be powered by the manufacturing sector, which will contribute 32% including a framework on how to think about building in them and the
to the incremental GVA that India adds by 2030. We believe that a kind of end-state outcomes they can expect.
significant portion of this manufacturing-led growth will come from
sunrise sectors that are critical to the development and sovereignty Highlights from the findings are listed below:
of our country. This report is a deep-dive on the state of the B2B and
Manufacturing-tech landscape of the country with a special focus Semiconductor and Electronics Manufacturing
on Semiconductors, Electronics Manufacturing, Electric Vehicles A key area of national importance and sovereignty is compute resilience
ecosystem, Renewable Energy and Defence along with a playbook (semiconductors, cloud, AI and electronics manufacturing)
on how entrepreneurs can play this manufacturing wave. • Trendlines:
Across 100s of founders, operators, policymakers, and experts that we have • The end market for electronics is estimated to be ~$500 Bn (2030E)
spoken to over the past 12 months, the key drivers that are propelling the with semiconductors expected to be a $120 Bn (2030E) market
manufacturing wave are • Favourable government policies and strong domestic demand have
driven global leaders like Foxconn, Dell, Samsung, Micron, Renesas,
• Large domestic demand on the back of rising disposable income Microchip to set up units in India
• Global realignment of supply chains • Opportunities:
• Government launched PLI schemes to boost domestic • Fabless design opportunities across GPUs, MCUs, and
manufacturing communication modules built India backwards leveraging lower
• High export potential, turning India slowly into the factory cost structure
of the world • IP-led design and component manufacturing for ODM plays across
• Supportive financial ecosystem with rising public and private capex product categories
• Demographic dividend and reverse migration of high-quality talent • Significant whitespace in high-margin picks & shovels part of
to India the EV and Renewable Energy value chain
• Opportunity to localize Foundry (manufacturing) & assembly (OSAT)
enabling complete ecosystem indigenization for semiconductors.

Digitizing Make in India Report 2024 5

EXECUTIVE SUMMARY

EVs and Renewable Energy • Manufacturing and supplying components like turbines,
India is undergoing large-scale electrification of mobility and is steadily heat exchangers for Tier 1 suppliers / prime Integrators
migrating towards cleaner sources of energy production.
•
• Drone-based surveillance and mapping
• Trendlines:
• 14 Mn units per annum of EV sales by 2030E, driven by FAME subsidies Other sectors that will meaningfully contribute to the $10 Tn journey
and the electrification of public transport We are also excited about other core sectors such as agriculture,
• India’s RE capacity has doubled from 76 GW in 2014 to 172 GW by speciality chemicals and railways, which are critical proponents for
2023; with the government targeting to reach 500 GW of installed India’s infrastructure and food resilience.
RE capacity by 2030, India will spend ~$80 Bn per year • Trendlines:
• Solar energy is expected to be a key driver of renewable energy, • Very high government focus on core infrastructure building
with India planning to spend ~$140 Bn in the next 7 years ($100 Bn+ capex outlay for public infra)
• Opportunities: • High levels of indigenization across core manufacturing sectors
• Manufacturing cells & cell components and developing novel cell • Opportunities
chemistries with a wide range of applications across mobility
• Building a strong R&D-backed manufacturing network in speciality
and grid storage
chemicals for segments with high export demand
• Design & manufacturing of customized powertrain components
• Farm mechanization and developing tech-enabled solutions for
(motor and controllers) for Indian terrain and drive cycles
supply chain breakages in agriculture and food supply chains
• Massive export potential in Solar Cells & Green H2 electrolyzers
• Streamlining supply chains and developing full-stack solutions for
• Opportunity in commerce-enabled financing models across the infrastructure projects
renewable energy value chain
Overall, B2B and manufacturing-tech sector has seen significant
Defence
•
company creation and innovation, with multiple companies going public
• Trendlines: in the last 3-5 years. This sector has accounted for around 56% of the
• Indian defence market expected to reach $43 Bn by 2030, growing total number of mainboard IPOs in the last 5 years which has been a big
at a CAGR of ~19% value creator for this segment.
• Government-enforced offset clause mandating domestic
procurement of a minimum 30% of components As India shifts gears to become a major global manufacturing hub, we are
excited about what the future holds for the B2B sector and look forward
• •
Opportunities: to partnering with more founders solving challenges in this space.
• Design and development of defence systems, platforms
and equipment
Digitizing Make in India Report 2024 6
TABLE OF CONTENTS

01 India Growth Story

Path to
$10 Tn economy 08-21

02
Industry Deep Dive
Sunrise sectors driving
India to $10 Tn economy 22-47

03
Ideas for Entrepreneurs
Opportunities for startups
to play the manufacturing wave 48-55

04
B2B IPO landscape
State of IPOs in B2B
and manufacturing 56-61

Digitizing Make in India Report 2024 7

 India
Growth Story
Path to
$10 Tn economy

Digitizing Make in India Report 2024 8

 01

Digitizing Make in India Report 2024 9

India continues to be global bright spot; poised to be $10 Tn+ economy
over the next decade
India to add $1 Tn every 1.5 years going forward.. ..and be in top 3 GDP by 2030

10
8 yrs to
2011 2023 2030 E
$10 Tn

8
Nominal GDP ($ Tn)

4 yrs to
$4 Tn
4 3 yrs to
$3 Tn
7 yrs to
$2 Tn
2 63 yrs to
$1 Tn

0
1947-2010 2010-17 2017-2020 2020-24 2024-32E

Per-
capita($) $1.4k $1.9k $2.6k $2.9k $6.4k

Ranking basis nominal GDP

2010 2017 2020 2024 2032 E

Source: Forecasts by International Monetary Fund, Oxford Economics, The World Bank & Reserve Bank of India, BCG Analysis

Digitizing Make in India Report 2024 10

..on the back of massive growth in manufacturing

Manufacturing to contribute 32% to incremental India to overtake top 5 economies in

GVA1 by 2030 ($ Bn) manufacturing IIP2
Index normalized for 2023
1,870 7,500 160

460
140
1,430

640
120
3,100

100

80
GVA Agri Manufacturing Other Services GVA 2023 2024 2025 2026 2027 2028 2029 2030
(FY23) Industries (FY30E)

Baseline India China South Korea

GVA (in $ Bn) 570 470 410 1650
Germany United States Japan

1. GVA at Current Prices in USD Bn 2. Manufacturing IIP for countries adjusted to year 2023 as base
Source: MoSPI, Oxford Economics

Digitizing Make in India Report 2024 11

India’s growth story to emulate China’s manufacturing success
of the early 2000s..

China’s manufacturing GDP share rose from ..potential for India to

~9% in 1991 to ~30% in 2023.. grow similarly

18 01 Policy reforms & favorable business

20 climate (Global trade shift)

15
Large infra spending (Industrial corridors,
02
ports, roads, railway etc.)
15

11
Manufacturing focused incentives –
03
PLI along with high export potential
10 (Factory of the world)

6
04 Domestic demand, demographic dividend
& talent migration to India
5

2
1
0.4 1

0 India is ready & keen to increase its

1991 1995 2000 2005 2010 2015 2020 2023
manufacturing share in GDP to 25%
- Hardeep Puri, Union Minister
China's Nominal GDP ($ Tn) China's manufacturing contribution ($ Tn)

Source: Oxford Economics, Economic Survey

Digitizing Make in India Report 2024 12

 01

Goods and service tax Transition to GST leading to digitization - $20 Bn GST
collection in Dec’23, Y-o-Y growth of 13%

Insolvency & Bankruptcy

Code & NCLT
Creditor rights strengthened

Policy reforms
have also Digital public infrastructure India stack and JAM have revolutionized financial inclusion
in India - 78% Indian adults have bank accounts; 1.2 Bn
positioned Aadhaar cards and 360 Mn digital daily transactions
India well for
the next phase
of growth
Startup ecosystem
3rd largest startup ecosystem, 900 Mn+ data users,
#1 in per capita data consumption

Infrastructure
$1.9 Tn to be invested till FY25 for infra projects under
National Infrastructure Pipeline (NIP) initiative

Source: India budget – State of the economy 2022-23, Jandhan, Aadhaar, NPCI, RBI data, IBEF, BCG Analysis

Digitizing Make in India Report 2024 13

 02

Infra spending — Buildout at full throttle with $1.9 Tn spend

Airports Ports Railways Roads Green Energy

2x (148 vs. 74) 1.76x in 2023 2.5x Electrified 1.5 lakh km 10% CAGR
in last 10y; vs. 2014 in last 10y highway since 2015,
network
Target 220 (1,535 vs. 871 Target 500 GW
(85% vs. 33%) (2x in last 10y)
by 2025 MTPA) by 2030

A decade back ‘Digitizing Make in India’ would have meant an oxymoron. Today it means coming together
of the old world with the new world, the use of tech to manufacture for the world and propel India
towards a $10Tn economy.
- Ashish Mohapatra, OfBusiness
Source: PIB, Secondary research

Digitizing Make in India Report 2024 14

 02

Industrial Corridors — Govt. plans to invest over ~$100 Bn

Non-Exhaustive

8 Nodes of the Delhi-Mumbai Industrial Corridor (DMIC)

Jodhpur Pali Marwar Dadri Noida Ghaziabad

1 5
Industrial Area (Rajasthan) Investment Region (Uar Pradesh)

Industries Agro Food,Textile & Apparel Industries Electronics, ICT, Bio-tech

6
5 Phase I 2022 | Phase II 2032 | Phase III 2042
7

1 Dholera, Special Manesar Bawal

2 6
Investment Region (Ahmedabad) Investment Region (Haryana)

8 Industries Automobile, Pharma, Industries Engineering, Consumer

2 Electronics Products
2040 Phase I 2022 | Phase II 2031 | Phase III 2041
4

3
Dighi Port Industrial Area Khushkhera Bhiwadi
3 7
(Maharashtra) Neemrana IR (Rajasthan)

Industries Heavy Industry & Industries Automotive components,

Food Processing IT and ITES
Phase I 2022 | Phase II 2030 | Phase III 2041

Shendra Bidkin Industrial Area Pithampur – Dhar - Mhow Region

4 8
(SBIA) (Maharashtra) (Madhya Pradesh)

Industries Automotive, Engineering, Industries Textile, Pharma

Electronics Chemicals, Electronics
Industrial Corridor DMIC Hi Tech Cluster Phase I 2021 | Phase II 2031 | Phase III 2041

On the lines of USA and China, India to build multiple industrial corridors over next
10 years with individual centers of excellence for dierent sectors

Note: These are just the nodes of the DMIC corridor, and do not list all the industrial corridors being developed in India; industries in corridors are non-exhaustive
Source: NICDC; BCG Research

Digitizing Make in India Report 2024 15

 02

..like the scaleup of Free Trade Zones (FTZs) drove China’s

growth over the years (1/2)
Henan Tianjin
Modern traffic and logistics hub for BRI Offshore financial markets
• Automobiles and robotics • Aerospace and aviation
• Biomedicine • Equipment manufacturing
• Cross border e-commerce • Cross border financing and leasing
• Financial services • Information technology (IT)

Shaanxi Liaoning
Logistics and shipping center in the northeast
Logistics and commerce hub for BRI
• Advanced manufacturing
• Agriculture technology
• Auto vehicles and components
• Advanced manufacturing
• Cross border e-commerce
• Financial services
• IT and new technology
• E-commerce

Shanghai
Sichuan
International financial center
Coordination for the opening up • Financial services
of South West • Advanced manufacturing
• Trade related services • Technical innovation
• Advanced manufacturing • Value-added telecom services
• Medical services
• IT and tele-communications Zhejiang
Maritime commerce center and
Chongqing tech innovation hub
• Oil and petrochemicals
Inland trade hub for BRI and
• E-commerce
Western Development
• Intelligent manufacturing
• Biotechnologies
• AI and fintech
• Financial services
• Advanced manufacturing
• E-commerce
Fujian
Facilitation of trade with Taiwan
• Advanced manufacturing
Hubei Guangdong • Financial services
High-tech hub for Yangtze River Economic integration with Hong • Tourism
Economic Belt Kong and Macau • Aviation logistics
• Financial services • Financial services
• Advanced manufacturing • Technology services
• Biomedicine • Advanced manufacturing
• New energy vehicles • Science and education

Source: Trade Commissioner, Govt. of Canada Report 2013 2015 2017

Digitizing Make in India Report 2024 16
 02

..like the scaleup of Free Trade Zones (FTZs) drove China’s

growth over the years (2/2)
Hebei Heilongjiang
New-type industrial base Cooperation hub with Russia
and innovation platform and Northeast Asia
• Equipment manufacturing • Financial services
• Life science and biotech • High-end equipment
• Aviation and airport economy • Next generation IT
• Financial leasing • Biomedicine

Hunan Beijing
Cooperation frontier of trade Development hub on digital innovation
with Africa and service sector
• Advanced manufacturing • Financial services
• New generation IT • Fintech and digital trade
• Renewable energies and green tech • Service trade innovation
• Biomedicine and agritech • Biotechnology

Guangxi Shandong
International land and sea trade Cooperation of trade with Japan
corridor for ASEAN and South Korea
• Financial and digital services • Marine industries
• New manufacturing • Green-tech and biomedicine
• New-energy vehicle parts • Financial services
• Biomedicine • Advanced manufacturing

Yunnan Jiangsu
Opening-up frontier towards South Pioneering zone for a real and
Asian and Southeast Asian open economy
• Advanced manufacturing • Financial services
• Biomedicine and healthcare • Advanced manufacturing
• Cross-border e-commerce • Biomedical science
• Headquarters economy • Cross border e-commerce

Hainan Anhui
Strategy hub of 21st Century Innovative pioneer of technology
Maritime Silk Road • Advanced manufacturing
• Financial services • Smart cars and appliances
• Biomedicine and healthcare • Financial services and fintech
• Clean energy • AI & robotics
• Education

Source: Trade Commissioner, Govt. of Canada Report 2018 2019 2020

Digitizing Make in India Report 2024 17
 03

PLI scheme — Govt incentives on domestic manufacturing to make India

next factory of the world
14 sectors prioritized to drive manufacturing
Illustrative sub-segments
Advance Chemistry Cell
(ACC) Battery Lithium-ion batteries

$25 Bn PLI total outlay Electronic/Technology SMT components, transistors, diodes, thyristors, PCBs,
Products capacitors and sensors

Automobiles & Auto Auto OEMs, transmission and steering components, braking
Components systems, auto electronics

High Efficiency
Poly silicon, Solar PV cells, solar PV modules
Solar PV Modules

Average Drone and Drone

5% incentive on Components Drone components like camera, airframe, etc.
total production
for 5 years
White Goods ACs & LED: Components and assembly

Telecom & Networking

Products Details to be announced

Textile Products Man Made Fiber segments and technical textiles

PLI-led projected Ready to Cook/Ready to Eat (RTC/RTE) food products,

increase in
$370 Bn production over
Food Products including millet-based foods, processed fruits and
vegetables, marine products
next 5 years
Specialty Steel Stainless steel, auto steel, electrical steel, etc

Pharmaceuticals drugs API, Biopharmaceuticals

Source: Invest India, BCG Analysis

Digitizing Make in India Report 2024 18

 03

Export potential — Indian exports poised to be ~25% of GDP at $2 Tn by 2030

driven by strong manufacturing focus
Exports (In $ Bn)

2,000

+12%

760

500
375

61

2000 2010 2020 2022 2030E

Exports as % of GDP 13% 22% 19% 22% 25%

Manufacturing exports to constitute ~60% of total exports and grow to $1.2 Tn by 2030

Source: Press Information Bureau, BCG Analysis

Digitizing Make in India Report 2024 19

 04

Domestic demand — Large demand on back of rising disposable income to drive

India’s economic acceleration
2010 2020 2030P

Avg. HH income¹ 4.68 1.3x 6.24 1.4x 8.76 Growth

(K p.a²) (2010-19)

Annual HH income¹ Number of households (Mn) and % of households in dierent income brackets
(USD K p.a)

Elite
3 (1%) 10 (3%) 23 (7%) 3.3x
>24
6% 12% 23%

Aluent
13 (5%) 26 (9%) 56 (16%) 2x
12-24

Aspirers
35 (15%) 59 (21%) 93 (26%) 1.7x
6-12

Next
108 (45%) 130 (45%) 142 (40%) 1.2x
billion 2-6

Strugglers
79 (33%) 64 (22%) 40 (11%) 0.8x
<2

Number of 238 289 354

HHs (in Mn)

Elite and Auent to become 23% of India's households by 2030 vs 6% in 2010

1. Annual household gross income based on 2020 prices 2. p.a. refers to per annum; 1 INR is equal to $0.012
Source: BCG CCI proprietary income database, EIU, World Bank

Digitizing Make in India Report 2024 20

India’s financial ecosystem highly supportive to lend for growth

Capex funded ($ Bn)

44

+12%

29

18
Rise in number
of projects &
capex allocated;
projects worth
~$45 Bn funded
in FY23
FY15 FY19 FY23

# of companies
828 963 982
funded

Source: RBI Aug’23 monthly bulletin, BCG Analysis

Digitizing Make in India Report 2024 21

 Industry
Deep Dive
Sunrise sectors driving
India to $10 Tn economy

Digitizing Make in India Report 2024 22

 02

Digitizing Make in India Report 2024 23

2A Semiconductors
Indian Semiconductor market poised to grow at 15% CAGR to be
~$120 Bn sector by FY30

Indian Semiconductor market ($ Bn) Key Growth Drivers

Unprecedented policy support on semiconductor

117
Aerospace & Defence • GOI launched Semicon India Program with outlay of $10 Bn¹ for
chipmakers across 4 verticals
Telecom • $200M Design Linked Incentive (”DLI”)scheme for fabless
design companies

15% Consumer Electronics

Automotive
Huge customer demand across segments
• 70% of semiconductor demand led by EV, Consumer
Electronics, Cellphones

Mobile & Wearables

44
Strong STEM focused talent pipeline
• ~32% of STEM graduates globally are from India (20% of
world's Semicon design engineers; India is a chip design hub)

Industrial

Cost advantage in labor, utility and tax

IT
• Labor is 40-60% lower; utility is 15-20% lower than
Taiwan and Corporate tax only 15%
2023 2030

1. Part of outlay (2.5%) earmarked for R&D, skill development, and training. Additional financial support offered by State Governments can also be availed by approved applicants
Source: IESA reports, Analyst reports, Expert discussions, BCG analysis

Digitizing Make in India Report 2024 25

Value chain — Opportunity to localize Foundry & assembly for
complete ecosystem indigenization
India needs Foundry & OSAT
to realize full localization

Semicon Assembly PCB System level CAGR

Sectors % market 23-30
Design Manufacturing and Testing assembly assembly
(Foundry) (OSAT) (PCBA) (ODM, EMS)
Aerospace
5% 14%
Entails chip Pattern wafers Package individual Assemble Integrate & Defence
Value sizing, layout with designed IC chips & packaged IC PCBA with
& transistor layouts conduct testing chips onto PCB other modules
Chain linking
Telecom 13% 27%

Consumer
6% 21%
electronics

Players
Automotive 5% 19%

~35% 35%-45% >20% ~5% 10%-15% Mobile &

48% 16%
EBITDA wearables
Margins

Present Scenario Way forward Industrial 9% 18%

100% Import of semiconductors; As a first step, build fabless design companies

only EMS is done in India
Localize OSAT and PCBA parallely
IT 1 14% 11%
And then build advanced high precision node foundry

1. IT sector includes PC, laptop, storage, servers, video conferencing solutions etc.
Source: IESA reports, Analyst reports, Expert discussions, Invest India, BCG Analysis

Digitizing Make in India Report 2024 26

Opportunities across AI compute, MCUs, processors etc.
built India backwards
Promising Right-to-win in the Semicon space.. ..with some risks to manage

AI compute in India for datacentre and EDGE AI Long concept to commercialization cycle (3 years);
applications - Provide GPU compute for India to highly capex-intensive, deep pockets needed
support LLM stack for Indic languages leveraging
India cost structures for design & dev. of NVIDIA Need for continued customer-backwards innovation to
Grace Hopper, AMD MI 300 equivalents keep up with global benchmarks

Lack of complete supply chain ecosystem; need to rely

India specific MCUs for automotive on foundries abroad for manufacturing
applications – Opportunity to customise and
up-spec generic microcontrollers widely used
in controller units of EVs and ICE such as STM32
India’s semiconductor momentum was
Infotainment processors – EDGE AI chips with derived from its skillable and scalable
low latency and power requirements powering the engineering talent. We are now pivoting to
next generation of processors for infotainment the next logical evolutionary step of bringing
modules in semiconductor manufacturing prowess.
As semiconductor consumption gets further
enhanced in the country, India will have a
Communication modules – Quectel equivalent complete ecosystem of design, manufacture
IoT modules that establish cloud connectivity and sell. Micron is committed to India and its
used in smart-meters, industrial applications
growth story in semiconductors.
and EVs; Global opportunity given supply
chain realignment - Anand Ramamoorthy, Micron

Source: Primary Research, BCG & Matrix Partners analysis

Digitizing Make in India Report 2024 27

2B Electronics
Manufacturing
Indian Electronics market poised to be a $500 Bn sector by FY30,
contribute ~6% to India’s GDP

Indian Electronics market ($ Bn) Key Growth Drivers

Domestic Demand
Manufacturing moving to India due to
Exports ~500
global supply chain shifts

300

+26%
Strong regulatory tailwinds via
central & state level schemes

101
200
76
25 Promising demand landscape across
end-user segments led by digital
FY23 FY30E
revolution and greater indigenization

Contribution
to GDP 2.8% 6.2%
Growing ODM market in India led by skilled
manpower enabling EMS play
Import
($ Bn) 77 96

Source: MEITY, Expert Interviews, Secondary Research, BCG analysis

Digitizing Make in India Report 2024 29

Value chain — Opportunity to move from low-value addition assembly
to a high-value addition manufacturing

Key activities in Electronics manufacturing ecosystem

Component
Value R&D/ODM Fabrication PCBA Manufacturing Assembly
& Sourcing
Addition in
Manufacturing¹
15% 10% 5% 10% 12% 8%
India has started to play
in PCBA and assembly in
EBIDTA
~10% ~10% ~5% recent years
Margins

India
Maturity
Level

High-value-addition Large whitespace Low value add & high

competition
Global companies gaining Led by large global players in High maturity level; no space
confidence in Indian Mainland China & Taiwan Opportunity for value
companies for ODM
addition across value
chain & build
India can focus on creating high value-add ‘nucleus’ of building equipment/capital goods for manufacturing
manufacturers along with design & IP-led manufacturing for components, PCB etc. ecosystem in India

Opportunity area

1. Remaining 40% includes gross profits (18%), Distribution & logistics (14%) and Operating profit (8%)
Source: MEITY, BCG Analysis

Digitizing Make in India Report 2024 30

Enter opportunity space(s) which offer high growth & margins
through innovation & IP, while mitigating potential risks
Promising Right-to-win in the Electronics space.. ..with some risks to manage

Design/IP focus along with contract Already established incumbents with scale efficiencies
manufacturing preferred mode of entry for in major EMS end use segments such as mobile phones
startups; operational efficiency needed at scale

Low margin and high WC business; hence, need for

strong and efficient operations in right categories
Opportunity in building for product categories
with high GM and ROCE and large secular
CAGR (e.g. B2B industrials/IoT, EV & renewables); Large capex and continuous innovation required
Incumbents dominate “legacy vol driving to compete with global players
categories” (e.g. Mobile phones)
Need for design-first talent to innovate and develop IP

Massive horizontal opportunity in IP-led PCB

design and component manufacturing for ODM
plays across product categories
India is at the cusp of the next big revolution
in electronics manufacturing and the
current situation is like the “Y2K moment”
Significant whitespace in high margin picks & for the country. India’s presence will
shovels part of value chain in EMS (Eg. Capital democratise the $400 Bn electronics value
goods and SMT line setup for EMS players)
chain by FY2026 as estimated by GOI.

– Josh Foulger, Zetwerk Manufacturing

Source: Primary Research, BCG & Matrix Partners analysis

Digitizing Make in India Report 2024 31

2C EV &
Batteries
Indian EV market poised to grow at 40% CAGR to be ~$50 Bn sector
by FY30

Cumulative EV market ($ Bn) Key Growth Drivers

~48
1
3
3

+40% 18

22
4
1
1
FY23 FY30

Tractor E-LCV E-Bus E3W E2W E4W

# EV Sales (Mn)

44% CAGR
1.2 14

Source: Center of Energy Finance, National Electricity Plan, CareEdge Research, Niti Aayog, BCG Analysis

Digitizing Make in India Report 2024 33

Multiple opportunities exist across the EV value chain

Baery pack

Cell component Cell Baery

manufacturing manufacturing assembly

01 CAM1 06 Lab testing & pilots 08 BMS2

02 Copper foil End to end 09 Contactor Charging

07 manufacturing infrastructure
03 Separator

04 Electrolyte

05 Anode 14 Rectifier

15 Controller
Other EV specific components EV assembly
16 Connector
E-motor drive Electronics
AC charger
17 assembly
Rare earth/ 12 Controllers
10
ferrite magnets
13 Semiconductors
Alternative
11
technology

Traditional auto components

XX Areas requiring further push

1. CAM- Cathode Active Material 2. BMS- Battery Management System

Source: Expert interviews, BCG Analysis

Digitizing Make in India Report 2024 34

Battery — Upstream concentrated in China; opportunity to enter
cells/components to reduce import dependency

Battery manufacturing

Raw Cell chemistry Module

and cell Cells Integration
materials & Packs
components

Acquire raw Develop novel Integrate cell Assemble cells into Subsystem and
materials chemistries and chemistry and modules ensuring vehicle integration,
Key cell components components safety & thermal charging
activities Establish size and to maximize into cells management management
economies of scale energy safety

Primary
Source

Capabilities
in India

~20-35% EBITDA margin ~10-12% EBIT margin ~5-15% EBIT margin for pure Volume-driven,
Profitability (Manganese with >50% EBIT) for cathode play, 10-15% for integrated low margin

Conventional Conventional Conventional Conventional

Tech disruptor

Select
players Manganese Tech disruptor
Tech disruptor

Source: Expert interviews, BCG & Matrix Partners analysis

Digitizing Make in India Report 2024 35

Motors & Controllers — Domestic production & assembly gradually
increase; key opportunities across design & software
E-Motor

Rotor hub Copper Permanent

Components Stator Housing Others
and shaft windings Magnet

Largely
Localization Manufactured in India Manufactured in India
imported

Controller

% Cost
(BOM)

Microcontroller & sensors Power module PCB Busbar Connectors Capacitors ousing & o
Housing others

Motors Controllers

Key Opportunities Key Opportunities

• Customized solution for Indian terrain & drive cycles • Design & manufacturing of customized controllers
• Advanced material alternatives to rare earth metals given • Potential for software moat via optimized algorithms & data
unavailability of neodymium magnets in India utilization, loaded on controller unit

Key Risks Key Risks

• Global dependence on China for rare earth metals • Limited power electronics R&D capability
• Underdeveloped semiconductor manufacturing, crucial for
controller components

The future of mobility is electric. Tesla started the culture years ago in the West. India will not be electrified by
the West, but by an Indian company.
— Bhavish Agarwal, Ola Electric
Source: BCG & Matrix Partners analysis

Digitizing Make in India Report 2024 36

2D Greentech
India will spend ~$40 Bn every year for the next 7 years on Green energy

Cumulative Domestic market ($ Bn) Key Growth Drivers

Deep Dive ahead
• India's RE capacity doubled from 76 GW in 2014 to 172
~~300 GW by 2023. Aim for 500 GW by 2030.
Solar
Wind
Hydro + PSP • The levelized cost of electricity ($/MW) for RE is ~45%
Bioenergy lower than coal
Green H2 140
BESS
• Solar manufacturing driven by PLI scheme with outlay
of ~$3 Bn, BCD increase, ALMM, Mfg. linked tenders

~90 51 • Solar Installations propelled by PM Surya Ghar, PM

Kusum & Solar Park Scheme
56 33
05 • National Green Hydrogen Mission: ~$2.5 Bn for 5 MMT
26 37 per annum green H2 production by 2030
01 06 30
FY14 - FY23 FY24 - FY30E • CCDCs, Repowering Policy, Wind-Solar Hybrid policy
driving the wind sector
Avg. annual market ($ Bn)

~3.2x increase
• Strong ecosystem support through Renewable RPO,
9 43 ISTS Waiver & Green Energy Corridors

Li-ion Battery covered under EV & Battery Industry

Source: MNRE, Invest India, CEA Report, CARE Report, JMK Research, BCG Analysis

Digitizing Make in India Report 2024 38

Value chain — Opportunity to build midstream and downstream
domestically; though upstream remains a constraint

Upstream Midstream Downstream

Mono Glass, EVA, Module

Wafer Cell Distribution
Polysilicon Backsheet (+Electronics)
Current
Capabilities
in†India

Primary
Source

EBITDA
20%-40% 15%-20% ~10% ~20% ~10%
Margin

High Capex Low sourcing Low-cost energy Process Low-cost sourcing Easy access
Chemical process cost & financing competence & assembly to finance
excellence Production Innovation/IP High durability Warranties Strategic
Success
Long term supply optimization Cell production Production Inverter reliability partnerships
Factors
contracts Contract tech know-how optimization Good sourcing
negotiation Tech know-how strategy

Need higher scale vs cells/modules; Significant expansions geared Opportunity In

nascent in India currently towards domestic demand; utility scale &
substantial export opportunity solar rooftops

Financing: Capitalize on rapid growth across all segments & enhanced asset quality with industry stabilization.
ROE¹: 15% - 25% NIM¹: 3% - 4% GNPA¹: 3% - 4%

1. Basis IREDA, PFC & REC results

Source: BCG Analysis

Digitizing Make in India Report 2024 39

Opportunities across Solar, Wind, Electrolyzer & BESS; however,
few risks remain
Promising Right-to-win ..with some risks to manage

Exports Regulatory & policy challenges: Shift in policy

Massive export potential in Solar Cells & Green H2 support to other renewables & project delays from
electrolyzer admin/ permit hurdles
Supply chain challenges: Increase in commodity prices
due to supply scarcity
Energy efficiency & Green Transmission
Tap into energy efficiency (Smart meters) Technical challenges: Grid integration and flexibility
challenges persist
& traditional transmission equipment
(Transformers, Switch gears, Wires etc.) Economic challenges: Other clean technologies may
become more cost competitive

Ancillary market
Opportunity in ancillary components with
short supply (Trackers, Inverters, Glass, EVA & I think it’s a once in a lifetime opportunity
Backsheet), technology play in fully-automated for Indian Greentech manufacturing
solar cleaning solutions entrepreneurs to take advantage of both
the large capital investment boom globally
Domestic demand and the changing global supply chain
Address shortages in demand for Wind dynamics. Every Greentech manufacturer
components (Turbine & Blades specific today should look to invest, not just for
to domestic wind profiles) & prepare for India, but for the world, and not just in
upcoming demand in BESS 1 India, but across the world.
- Vishal Mehta, BCG India
1. Battery Energy Storage Systems
Source: BCG & Matrix Partners analysis

Digitizing Make in India Report 2024 40

2E Defence
 Neobanking

Indian Defence market poised to be ~$45 Bn sector by FY30

Indian Defence market ($ Bn) Key Growth Drivers

Domestic
43 100% Foreign Direct Investment in Defence
Exports
• Foreign companies can own up to 100% equity in domestic
defence manufacturing companies (Automatic govt
approval)
+18.6%
• Access to new technology and utilizing foreign technology

Long-term indigenous Defence capabilities

through policy interventions (DPP & MAKE¹)
• Encourage indigenous manufacturing of defence equipment

+5.7% • Increased focus towards indigenous R&D

33

Oset Clause enabling domestic procurement

13 • Components worth 30% of estimated cost of
11 capital acquisition must be procured domestically
via Indian manufacturers

11 Innovation led demand uptake

10
10 • Disrupt mobility market and enable multi-sectoral
application of aerospace (e.g. drones in agri, urban
1 2 mobility etc.)
FY20 FY23 FY30

1. Defence Procurement Policy (DPP) 2016, MAKE Policy

Source: IBEF, Invest India, Expert Interviews, BCG Analysis

Digitizing Make in India Report 2024 42

 Neobanking

Opportunities exist across the value chain; govt. is the key stakeholder

Key Activities Design Tier 3,4 supplier s Tier 1,2 suppliers Prime Integrator

Design & development of Responsible for supplying Support primes by providing Control design, manufacturing
equipment, systems, major non-core value add product equipment & system and assembly function
Description platforms or upgrades and services

Mechanical parts Engines Aircrafts

Turbine Weapons Helicopters
Heat exchanger Radar Drones
Compressor C41 Technologies¹ Unmanned aerial systems
Wingtails
Output
Body
Nacelle

Key Players
High government exposure
with high impact basis the
new policies
1. Command, control, communication and computer technologies

Digitizing Make in India Report 2024 43

2F Other
Sectors
 • Market size of $50 Bn+ by 2027 and expected to
grow at 12–15% CAGR on back of multiple tailwinds
Specialty chemicals
• Opportunity to build strong R&D backed manufacturing
network in segments with high export demand

Significant • Key risks include threats from China, slowing pace

opportunity of innovation and cyclicity of the industry

for startup
exists in
other sectors • Opportunity of $50 Bn+ of agri exports and $20 Bn+
of Farm mechanization with high govt. focus
as well (1/2) Agri Tech (Food security)
• Opportunity areas are farm mechanization, value
added farm outputs for exports and tech enabled
supply chain solutions

• Key risks include lack of credit availability to farmers,

low tech awareness and developing rural infrastructure

Non-Exhaustive
Source: BCG & Matrix Partners Analysis

Digitizing Make in India Report 2024 45

 Significant opportunity for startup exists in other
sectors as well (2/2)

Infrastructure Drones and

Key Activities Railway
and construction space tech

• Very large TAM across • Key focus area for govt. • ~$6-8 Bn TAM across use
Market both public ($100 Bn+ with $29 Bn capital cases for drones; Large
Size capex outlay) and private outlay in FY24 budget global market for space
infrastructure development and strong focus on tech ($350–400 Bn+)
Make in India

• Opportunity to streamline • Large opportunity • Opportunity areas incl.

Opportunity supply chains, tech areas in manufacturing Surveillance and mapping
areas enabled E2E project of rolling stock, across defence & mining,
management and backward electrification spraying in agriculture,
integration and supply chain build components for satellite
etc.

• Risks include high WC • Risks include • Key risks are regulations

nature of business and highly concentrated and unproven adoption
Risks
highly competitive space customer base and well by end use enterprise
entrenched incumbents customers
Non-Exhaustive
Source: BCG & Matrix Partners Analysis

Digitizing Make in India Report 2024 46

Digitizing Make in India Report 2024 47
 Ideas for
Entrepreneurs
Opportunities for startups
to play the manufacturing wave
Matrix Perspective

Digitizing Make in India Report 2024 48

 03

Digitizing Make in India Report 2024 49

Well-entrenched category leaders across horizontal & vertical B2B marketplaces;
next set of large company creation from IP/solution-led manufacturing

2015 - 2018 2019 - 2023 2024 Onwards

Phase I: Phase II: Phase III:

Horizontal B2B Vertical Marketplaces IP/Solution-Led
Marketplaces & Export Focus Manufacturing

Key Tailwinds:

• Digitization wave led • Covid-19 led push to digitization • Make in India at the forefront
by the launch of Jio and of innovation
4G connectivity • Global supply chain realignment
• Emergence of sunrise
• Formalization caused by • Opportunity for Indian players to sectors – with massive
launch of UPI and GST build global marketplaces growth opportunities

• Increased Government focus • Government push for cross- • Manufacturing push via PLI’s
g the MSME sector
on digitizing border trade ear
worth $25 Bn in next 5 years
in India
n of high
• Reverse migration
• Significant whitespace
s to quality talent
u
solve for broken supply
chain linkages

Source: Matrix Perspective

Digitizing Make in India Report 2024 50

We have seen large B2B outcomes across multiple supply chains
over the past decade..

2015 - 2018 2019 - 2023 2024 Onwards

Phase I: Phase II: Phase III:

Horizontal B2B Vertical Marketplaces IP/Solution-Led
Marketplaces & Export Focus Manufacturing

Source: Matrix Perspective

Digitizing Make in India Report 2024 51

..but the context has changed now, with interesting opportunities rising in
advanced manufacturing, IP and deep-tech plays
We have seen large B2B outcomes Significant opportunities for
in the supply chain.. value creation in areas such as

Horizontal distribution opportunities have played out, Building solutions for new age sunrise sectors¹
category leaders emerged • Semiconductors ($117 Bn)
• EV ($41 Bn)
Significant value creation, few demonstrating • Renewables ($43 Bn)
profitable growth. For e.g., OfBusiness • Aerospace and defence ($43 Bn)

Incumbents responded to digitization wave, driving Picks and shovels business for high growth
innovation in respective industries areas like:

Key e.g., JSW One platform, JioMart (foray into • Capital goods for manufacturing line setups
B2B sales) • Component manufacturing

NBFCs poised to grow at 19% CAGR from 2021-26 Design/IP led contract manufacturing in sectors
based on: where traditional incumbents are largely focused
• Increased MSME credit demand post covid downstream in value chain
• Demand catered by NBFCs & innovative embedded
finance solutions
• Strong policy support

We are big believers in B2B/Manufacturing and it is one of the secular trends that drive the growth of any nation.
Hence going forward, we feel that new business models capturing the growth
For the next decade, we are excited about opportunities that improve India’s sovereignty in compute, energy, defence,
and infrastructure building. in sunrise sectors is best way to play B2B
– Sudipto Sannigrahi, Matrix Partners
1. Market Size in FY30
Source: Matrix Perspective

Digitizing Make in India Report 2024 52

What are the characteristics of a good B2B, advanced manufacturing business
at steady state?

Founders should think about building $50 Mn+ EBITDA, 20%+ ROCE, OCF positive businesses at
steady state. Some of the vectors to think about how they can build are:

Build in industries with large profit pools Focus on sunrise sectors with
high-growth, where demand
• Shift focus from total addressable market exceeds supply for next 5-10 years
(TAM) to industry profit pools
• Look at markets with addressable profits
of $1 Bn+ by 2030, and target to get Build businesses with suicient margin
5% market share
of safety to withstand down cycles
- Mature cohorts of theŒbusiness should
Build non-linear businesses with a clear MOAT
ideally have
• Full stack asset light contract manufacturing • 8 - 10% CM2 at Series A/BŒstage
models vs pure play manufacturing
• Which translates into end stateŒ6
• Tech-enabled eiciencies in supply chains - 7% EBITDA; 4 - 5% PAT
with wastages
• Customer backwards solution/design
At scale, be OCF positive – so that the
• IP/design led manufacturing
company can continue to grow from
• Tech-enabled discovery and matching platform internal accruals

Source: Matrix Perspective

Digitizing Make in India Report 2024 53

B2B Funding Napkin

Sector Seed Series A Series B

GMV (annualized) $0-6 Mn $20-30 Mn $45-60 Mn

Growth (annualized) N/A 2-3x YoY 1.5-2x YoY

Margins CM2 +ve CM2 2-3% CM3 5%

Buyer / Seller Early PMF with pilots 10s of buyers and sellers 100s of buyers and sellers
Engagement / co-design partners with power cohorts with power cohorts

Team Size 0-50 100-150 200-500

N/A Head of Engineering in place Engineering team in place

Tech (Processes can run on excel) (Internal processes run on tech) (Demand and supply onboarded on tech)

Venture Debt WC lines with WC lines with

Debt (25% on equity round) NBFCs banks

All businesses at each stage should have one of the moats (as discussed) and clear path to 30% RoCE in end state

Source: Matrix Perspective

Digitizing Make in India Report 2024 54

Digitizing Make in India Report 2024 55
 B2B IPO
landscape
State of IPOs in B2B
and manufacturing
Matrix Perspective

Digitizing Make in India Report 2024 56

 04

Digitizing Make in India Report 2024 57

State of B2B IPOs: Last 5 Years

B2B Trendline across IPOs Key Sectors that have seen Significant Activity: Last 5 Years
Number of IPOs in Last 5 years B2B companies were ~56% of the total IPOs in L5Y
Funds Raised
65 Sector No of IPOs Key IPOs done
(INR Cr)
59
B2B IdeaForge, MTAR
Aerospace Technologies,
35
35 6 2800
Other and Defense Data Paerns
39 37
(63%)
19
19 Kaynes
17 EMS and Technology,
16 Electronic 10 8100 Syrma SGS,
9 30 Equipment
9 IKIO Lighting,
(53%)
(5 3 % ) 20 22
RR Kabel
8 7

2019 2020 2021 2022 2023 Sona BLW

Auto Parts Precision, ASK
7 10400 Automotive,
and Ancillaries
Craftsman
Increasing share of companies with Automation
Split of B2B IPOs by Issue Size
250-750 Cr issue size among B2B IPOs

Chemplast
Sanmar,
Speciality
11 10900 Anupam
Chemicals
17% Rasayan,
33% Laxmi Organic
<250 Cr
250-750 Cr Tega
Industrials:
>750 Cr 44% Industries, Azad
Machinery & 5 4500 Engineering,
Components Happy Forgings

Source: Matrix Perspective

Digitizing Make in India Report 2024 58

What does it take to list a B2B company?

Metric Criteria at IPO Filing

Revenue Growth • Minimum 20% - 30% YoY predictable growth

Margins • Businesses with <30% GM, should ideally have ~$20M annual EBITDA with 7-8 quarters of EBITDA profitability
• Businesses with 30% - 60% GM, should ideally have ~$10M annual EBITDA with 4 quarters of EBITDA profitability
• Clear visibility to PAT profitability, and ability to underwrite operating leverage as business scales

ROCE • Visibility on medium term ROCE of 20%+ post listing

• Businesses should ideally take care of primary capital requirements at IPO for the next 2-3 years
User IPO Proceeds
• Secondary (OFS) stake sales can go up to 35-40% of the company’s market capitalisation

Promoter • Usually promoter shareholding at IPO is 50%

Shareholding • However, in case of <20% promoter shareholding, SEBI may ask for clarifications

Investors look at the:

• IPO performance of close peers: existing multiples, profit pools
Valuation
Method • Pricing basis EBITDA and PAT two years from date of IPO Kickoff
• Pipeline and clear visibility on profits in near future

Source: Matrix Perspective

Digitizing Make in India Report 2024 59

Trendline of successful IPOs with <750 Cr issue size: Last 5 years
MCap and Revenue figures are in INR Cr At IPO Latest Last 12 Months Performance
Latest
IPO 2Yr Absolute IPO EV/
Name Sector Issue Size MCap Rev EBITDA% PAT% ROCE% MCap Rev EBITDA% PAT% EV/
year Rev CAGR Return % EBITDA
EBITDA

Azad
Industrials 2023 740 3,098 252 30% 3% 17% 43% 7,671 332 36% 6% 26% 45x 66x
Engineering

Cyient DLM EMS 2023 592 2,102 832 10% 4% 18% 15% 6,124 1,107 9% 5% 226% 26x 60x

Data Patterns A&D 2021 588 3,035 224 40% 25% 40% 31% 14,748 522 39% 32% 329% 24x 70x

Divgi Torq Auto Parts 2023 412 1,804 271 27% 19% 37% 21% 2,432 261 21% 17% 68% 25x 39x

IdeaForge A&D 2023 567 2,800 186 20% 17% 24% 132% 3,173 250 10% 12% 25% 342x 116x

IndiaMart B2B Commerce 2019 475 2,800 507 16% 23% -24% 26% 15,466 1,150 26% 25% 177% 21x 44x

Laxmi Organic Speciality Chem 2021 600 3,428 1,768 13% 7% 20% 6% 6,973 2,809 8% 4% 105% 31x 31x

Mazagon Dock A & D 2020 444 2,925 4,905 5% 10% -5% 5% 41,500 8,441 13% 19% 1,548% -13x 26x

MTAR Tech A&D 2021 596 1,769 246 34% 19% 20% 16% 5,633 634 22% 13% 283% 26x 41x

Rail Vikas
Construction 2019 477 3,962 10,069 5% 7% 20% 31% 49,529 20,895 6% 7% 1,319% 12x 41x
Nigam

Rishabh Instru Elec Equipment 2023 491 1,674 570 12% 8% 16% 21% 1,795 686 11% 8% 17% 22x 19x

Rolex Rings Auto Parts 2021 731 2,451 616 18% 14% 14% -17% 5,450 1,204 21% 15% 135% 17x 21x

Rossari Biotech Speciality Chem 2020 496 2,207 600 18% 11% 62% 43% 4,007 1,764 14% 7% 80% 10x 17x

Tatva Chintan Speciality Chem 2021 500 2,400 300 22% 17% 26% 21% 2,811 419 15% 9% 16% 30x 42x

Tega Industries Industrials 2021 619 3,003 806 23% 17% 30% 13% 7,640 1,382 19% 13% 173% 17x 30x

We have seen successful IPOs among companies with <750 Cr issue size - with a median 20%+ ROCE, 18%+ EBITDA and
25-30%+ revenue growth

Source: Capital IQ, Matrix Perspective

Digitizing Make in India Report 2024 60

Trendline of successful IPOs with >750 Cr issue size: Last 5 years
MCap and Revenue figures are in INR Cr At IPO Latest Last 12 Months Performance
Latest
IPO 2Yr Absolute IPO EV/
Name Sector Issue Size MCap Rev EBITDA% PAT% ROCE% MCap Rev EBITDA% PAT% EV/
year Rev CAGR Return % EBITDA
EBITDA

Anupam
Speciality Chem 2021 760 5,545 816 25% 9% 10% 26% 10,465 1,554 25% 21% 70% 41x 29x
Rasayan

Archean Chem Speciality Chem 2022 1,462 5,008 1,130 41% 17% 40% 36% 8,645 1,428 39% 35% 97% 11x 15x

ASK
Auto Parts 2023 834 5,559 2,555 9% 5% 25% 29% 5,480 2,780 10% 7% 9% 25x 21x
Automotive

Avalon Tech EMS 2023 865 2,846 945 11% 6% 23% 17% 3,380 921 9% 8% 20% 26x 42x

Craftsman
Auto Parts 2021 824 3,148 1,560 27% 6% 11% -7% 8,801 4,326 19% 14% 191% 11x 13x
Auto

Delhivery Logistics 2022 5,235 35,284 6,882 -3% -15% -26% 57% 33,827 7,925 1% -8% -6% - -

Harsha
Industrials 2022 755 3,004 1,321 13% 7% 20% 353% 3,586 1,355 12% 10% 23% 19x 21x
Engineers
India
Agri Chemicals 2021 800 3,408 649 28% 21% 55% 38% 4,306 752 16% 15% 30% 18x 34x
Pesticides

Kaynes Tech EMS 2022 858 3,413 706 13% 6% 27% 38% 19,720 1,532 13% 13% 393% 40x 97x

Paradeep
Agri Chemicals 2022 1,502 3,420 7,859 10% 5% 23% 37% 6,090 12,976 6% 5% 88% 7x 12x
Phosphates
Shyam
Steel 2021 909 7,805 6,297 22% 13% 28% - 17,571 12,969 12% 7% 116% 6x 12x
Metalics

Sona BLW Auto Parts 2021 5,550 16,973 1,566 27% 14% 37% 50% 39,954 3,043 27% 21% 126% 41x 49x

Syrma SGS EMS 2022 840 3,877 1,020 9% 5% 25% - 9,230 2,505 7% 6% 140% 36x 52x

TVS Supply
Logistics 2023 880 8,745 10,235 3% 0% 8% 22% 7,600 9,336 3% 1% -4% 39x 33x
Chain

Uniparts India Agri Machinery 2022 836 2,604 1,227 20% 14% 30% 16% 2,475 1,177 17% 14% -5% 11x 12x

We have seen successful IPOs among companies with >750 Cr issue size - with a median 25%+ ROCE, 15%+ EBITDA and
35%+ revenue growth

Source: Capital IQ, Matrix Perspective

Digitizing Make in India Report 2024 61

For further information,
contact
BITAN DAT TA AVNISH BAJAJ
Managing Director and Partner BCG India Founder & Managing Director Matrix Partners
datta.bitan@bcg.com avnish@matrixpartners.in

ISHANG JAWA SUDIPTO SANNIGRAHI

Managing Director and Partner BCG India Managing Director Matrix Partners
jawa.ishang@bcg.com sudipto@matrixpartners.in

MANOJKUMAR KAMBLE ANURAG SRIVASTAVA

Associate Director BCG India AVP Matrix Partners
kamble.manojkumar@bcg.com anurag@matrixpartners.in

AADITYA KAUL NIVEDITH KESWANI

Consultant BCG India Associate Matrix Partners
kaul.aaditya@bcg.com nivedith@matrixpartners.in

RISHI MANGAL YASHASVI MADHOGARIA

Associate BCG India Analyst Matrix Partners
mangal.rishi@bcg.com yashasvi@matrixpartners.in

Digitizing Make in India Report 2024 62

 Acknowledgements
This report is a joint initiative of Boston Consulting Group (BCG) and Matrix Partners India.

We are thankful to Jasmin Pithawala, Suniet Bezbaroowa, Nopur, Sonakshi Mathur and Mridushmita Bose for marketing
and communications support;

and to Himashis Karmakar, Ankita Singh, Kaushiki Srivastava and Vishal Bhandari for their extensive design and report production support.

We extend our sincere appreciation to Amit Kumar and Aditya Khandelia for their contributions to enriching the report.

We also extend our appreciation to Sidharth Madaan and Vishal Mehta for their contributions to the report.

About the Authors

Bitan Datta is a Managing Director and Partner in BCG’s Delhi office and leads the Manufacturing & Supply Chain business line in Asia Pacific,
as well as the Operations practice area in India.

Ishang Jawa is a Managing Director and Partner in BCG’s Delhi office and is a core member of the Industrial Goods practice area, as well as the
node for Building Materials business line in Asia Pacific.

Manojkumar Kamble is an Associate Director in BCG’s Mumbai Office and has deep expertise in Manufacturing, Operations, Cost optimization and
Supply chain transformation.

Aaditya Kaul is a Consultant with BCG Delhi office and has worked extensively across the Industrial Goods and Financial Services practice areas
with deep expertise in Go-to-market and sales acceleration.

Rishi Mangal is an Associate in BCG’s New Delhi office and has been a part of Energy and Industrial Goods practice areas with experience in cost
management and business strategy.

Avnish Bajaj is the Founder of Matrix Partners India, he has invested in Financial Services, B2B, Deep-tech and Consumer companies.

Sudipto Sannigrahi is a Managing Director at Matrix Partners India, he leads the B2B, Advanced Manufacturing and Deep-tech investing practices.

Anurag Srivastava is an Associate Vice President at Matrix Partners, he is part of the B2B and Advanced Manufacturing investing practices.

Nivedith Keswani is an Associate at Matrix Partners India, he is part of the Advanced Manufacturing and deep-tech investing practices.

Yashasvi Madhogaria is an Analyst at Matrix Partners India, she is part of the B2B and advanced manufacturing investing practices.

Digitizing Make in India Report 2024 63

Digitizing Make in India Report 2024 64