Karkhana.io: Simplifying manufacturing in India’s complex ecosystem

*This article is adapted from * ManufacturingToday

The global manufacturing landscape is in constant flux, driven by technological advancements, evolving supply chains, and the ever-increasing demand for speed and efficiency. Nowhere is this more apparent than in India, a nation brimming with manufacturing potential yet grappling with the complexities of scaling operations and navigating a fragmented supply network. Enter Karkhana.io, a company determined to reshape this landscape, and its visionary leader, Sonam Motwani.

Karkhana.io isn’t just another organisation; it’s a digitally driven ecosystem designed to simplify and streamline the entire manufacturing process. By leveraging a sophisticated technology stack and a vast network of vetted suppliers across India, Karkhana.io offers a seamless experience for businesses of all sizes, from startups to established enterprises. This innovative approach addresses a critical pain point for many manufacturers: the challenge of finding reliable, high-quality suppliers capable of meeting demanding production schedules and intricate specifications.

Motwani, the founder and CEO of this rapidly growing organisation, has spearheaded Karkhana.io’s impressive trajectory. Her vision transcends simple manufacturing; it’s about building a robust and transparent supply chain, empowering Indian manufacturers, and fostering a culture of collaboration and innovation. Karkhana’s success story is a testament to her leadership, her deep understanding of the manufacturing sector, and her ability to harness technology to solve real-world problems. Karkhana.io’s impressive client roster, spanning diverse industries such as aerospace, consumer electronics, and medical devices, speaks volumes about the effectiveness of their approach.

Also read: Karkhana.io raises $1.5mn in seed round led by Vertex Ventures SEA & India

This interview delves into the core principles driving Karkhana.io’s success. We explore Motwani’s journey in building this unique manufacturing ecosystem, the challenges overcome in navigating the complexities of the Indian manufacturing sector, and the future vision for the company’s expansion into global markets. We’ll discuss the crucial role of technology in modern manufacturing, the importance of building strong supplier relationships, and the strategies employed to ensure quality, speed, and efficiency throughout the entire production lifecycle. From their asset-light model to their commitment to customer obsession, we uncover the key ingredients behind Karkhana.io’s rapid growth and its profound impact on the Indian manufacturing landscape.

Karkhana.io positions itself as “Manufacturing Simplified.” Can you elaborate on this by explaining how your platform simplifies the manufacturing process for clients, particularly compared to traditional methods? What are the key pain points you address?
Karkhana.io’s ‘Manufacturing Simplified’ approach streamlines the traditionally complex and fragmented manufacturing process by providing a one-stop solution for a complete box-build solution. Unlike conventional methods, where clients manage multiple vendors, negotiate pricing, and oversee supply chain logistics, Karkhana.io takes charge of everything—from raw material sourcing to final product delivery. Utilizing a vetted supplier network and comprehensive project management by our in-house team, our platform removes the burden of maintaining a dedicated supply chain team for our clients. This tackles major pain points such as vendor coordination, inconsistent quality, and time-consuming procurement. With advanced capabilities like automated SMT lines, thorough testing, and real-time quality control, Karkhana.io ensures precision and reliability while cutting operational overhead. By outsourcing these challenges, clients can concentrate on their core business—product innovation and growth—making manufacturing faster, cost-effective, and hassle-free compared to the traditional, multi-step process.

You offer a range of manufacturing capabilities (PCB Assembly, Box Builds, etc.). How do you manage the complexities of coordinating multiple processes and suppliers for a single client project?
Karkhana.io expertly coordinates complex manufacturing processes involved in PCB assembly and box builds for clients through a seamless, integrated approach. Our dedicated project management team oversees every stage on the ground, ensuring quality and precision with extensive expertise in the EMS supply chain. Our advanced capabilities, including 7 high-speed SMT lines, robotic soldering, and rigorous testing, deliver consistent results. Supported by a network of over 600+ vetted suppliers, we handle everything—from component sourcing to final assembly. Real-time Statistical Process Control (SPC) and our in-house ERP portal provide full visibility and 100% traceability, aligning all processes. By managing multiple suppliers and intricate workflows, we eliminate delays and maintain high standards throughout. This comprehensive oversight ensures clients receive a fully assembled product without the burden of navigating manufacturing complexities, simplifying the entire experience.

Your website highlights success stories across various industries (medical, consumer electronics, etc.). Can you share specific examples of how Karkhana.io has helped clients overcome manufacturing challenges and achieve their business goals? What were the key success factors in those projects?
Karkhana.io has empowered clients across industries to overcome manufacturing challenges, as demonstrated by our work with a consumer electronics innovator launching India’s first AI-powered cooking assistant. This client faced the hurdle of no local supply chain, relying heavily on global sourcing. We stepped in to localize their semi-knocked-down (SKD) units, sourcing mechanical and electronic components, and delivering PCB assembly and box build solutions. Through feasibility analyses, identifying cost-competitive local vendors, and crafting a detailed roadmap, we reduced manufacturing costs and lead times by 20%, boosting affordability and market responsiveness. We also streamlined processes with standardized assembly and testing flows, transitioned bill of materials (BOM) parts to full-scale tooling, and localized packaging—eliminating inefficiencies. Key success factors included our end-to-end project management, global-local sourcing expertise, and rigorous quality control, enabling the client to prioritize R&D and achieve a successful launch.

How does your proprietary ACE (Automated Costing Engine) technology stack enhance supplier efficiency and simplify their costing process? Additionally, how does it transform the operations of MSME suppliers in the manufacturing ecosystem?
The Automated Costing Engine (ACE), is an AI-powered platform that streamlines CNC machining cost estimation. Suppliers have to simply upload a CAD file (STEP format) and with one click, get an accurate cost in seconds—replacing hours of manual calculations requiring CNC expertise and CAM skills. ACE includes advanced algorithms that analyze part geometry, material requirements, and machining parameters, delivering precise cost estimates without human error. This speed and ease enable suppliers to quote faster and win orders efficiently. By eliminating delays and standardizing costing, ACE empowers MSMEs to meet OEM timelines and quality expectations, boosting their competitiveness and operational efficiency in the manufacturing ecosystem.

What are the key features of the Automated Costing Engine (ACE), and how do its enterprise customizations boost flexibility and supplier integration?
Key features of ACE include multi-material support, DFM analysis, bulk upload capabilities, detailed costing reports (covering raw material and machining costs), machining time breakdowns, and customizable inputs like material rates. These features enable instant, accurate cost calculations from CAD files, reducing processing time to seconds. For enterprise users, ACE offers advanced customizations such as custom ML models for tailored costings, the ability to add specific machines and tools, on-premise or cloud hosting options, and API access for ERP integration. These enhancements provide users with the flexibility to adapt ACE to unique workflows and improve integration with existing systems, ensuring precise, efficient, and scalable costing solutions that align with enterprise needs and enhance competitiveness.

What are the key metrics you use to measure the success of Karkhana.io? How do you track progress toward your long-term goals?
As a contract manufacturing platform specializing in box-build solutions, Karkhana.io measures success through metrics tied to our role as a one-stop solution for clients. A primary metric is the acquisition of new key accounts for box builds, both in India and overseas, where we serve as their trusted partner, helping them scale quickly and efficiently. We track the number of clients partnering with us to localize their supply chains in India, leveraging MSME potential to bridge the gap between OEMs and suppliers. Success is also gauged by cracking new orders in the EMS space across industries like automotive, medical, and consumer electronics. Progress toward long-term goals—streamlining supply chains and expanding our footprint—is monitored through order volume growth, client retention rates, and the percentage of localized manufacturing achieved, ensuring we deliver efficiency and scalability.

What are the biggest challenges faced by the Indian manufacturing sector, and how is Karkhana.io working to address these challenges?
The Indian manufacturing sector grapples with significant challenges, including its unorganized and fragmented nature, slow processes, inconsistencies, and frequent delays. These issues stem largely from the dominance of MSMEs, which form the backbone of the ecosystem but struggle with limited resources, outdated methods, and inconsistent delivery. This creates a stark gap between OEM expectations—timely, high-quality production—and what most MSMEs can reliably provide. Karkhana.io addresses these challenges in two key ways. First, we bridge the gap between MSMEs and OEMs by acting as a one-stop solution, leveraging our extensive MSME network to meet customer needs. Our supply chain management and manufacturing expertise ensure projects are executed efficiently, delivering consistent quality and timelines OEMs demand. Second, we’ve developed ACE (Automated Costing Engine), an AI-powered platform that transforms MSME operations. ACE enables suppliers to generate accurate CNC machining quotes in seconds from CAD files, replacing slow, error-prone manual costing. This boosts MSME efficiency, competitiveness, and ability to meet OEM standards, modernizing the sector.

What role does sustainability play in Karkhana.io’s operations and future plans? Are there any specific initiatives in place to promote environmentally responsible manufacturing practices?
Sustainability is a core focus for Karkhana.io, woven into our mission as a contract manufacturing platform specializing in box-build solutions and electronic manufacturing services (EMS). A key challenge in India’s manufacturing sector is the heavy reliance on China and other countries for supply chains, driven by price and competitiveness, which increases logistics-related emissions and overseas dependency. Karkhana.io addresses this by helping companies localize their supply chains in India, reducing the environmental impact of long-distance transportation and fostering sustainable production. By building a robust network of MSME suppliers and leveraging our EMS expertise, we enable clients to manufacture efficiently within India, aligning with the Make in India initiative. Our future plans include expanding this localization effort, minimizing carbon footprints through reduced imports, and enhancing in-country resource efficiency. This strengthens India’s manufacturing ecosystem while promoting environmentally responsible practices.

What are your predictions for the future of manufacturing in India, and how does Karkhana.io plan to adapt and evolve to meet these future trends?
The future of manufacturing in India looks promising, driven by recent global supply chain disruptions prompting diversification away from single-country reliance. Companies increasingly view India as a manufacturing hub, leveraging its vast MSME ecosystem for resilience and cost-effectiveness. In the box build and EMS space, this shift positions India as a key player. Karkhana.io anticipates this trend, strengthening its role as a contract manufacturing platform acting as a bridge between OEMs and MSMEs for localized, efficient production. We’re adapting by expanding our supplier network and enhancing capabilities like high-speed SMT lines and turnkey box-build solutions to meet rising demand. Our strategy includes deeper investment in technology and supply chain optimization, ensuring scalability and quality for global clients. By aligning with India’s growing manufacturing potential, Karkhana.io aims to lead the EMS sector, capitalizing on diversification trends.

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