Indian manufacturing has excess capacity today. In fact, roughly 30 per cent of the country's capacity lies untilised. A company out of Pune thinks it can help with higher utilisation by matching industrial capacity owners with potential capacity seekers online. Business Today spoke to Jayesh Desai, the Founder and Chairman of Shareconomy. The website is live for just three months now, but the company already claims customers such as ITC and Patanjali. Here's what we found:
1. Shareconomy is promoted by the Rajhans (Desai-Jain) Group, a Rs 4,500 crore business house with interest in Realty, Entertainment, Confectionery, Hospitality, Textile and now B2B e-commerce. The group employs 6000. Spare capacity in its chocolate factory, off Mumbai-Ahmedabad highway, is used by Patanjali to make its energy bars.
2. Shareconomy was in the works since 2015 but launched in August 2017. The group has invested about Rs 40 crore. The idea is similar to the industrial version of Uber Pool - if you have excess capacity, the company would match you with those who need a production line, either because of a sudden spurt in demand, or industries that are starting-up and don't want to invest in capex right away. Currently, the company has listed about 16 industries with excess capacity, from textiles and dairy to electronics and pharmaceuticals.
3. Shareconomy audits the capacities it onboards - the age of the machinery, current customers, distance from airport etc. It provides the information and does the matchmaking, leaving the negotiations on price to customers. Its revenue model isn't transactions-based. Shareconomy charges a Rs 15,000 membership fee to be on the platform. Desai says he has 565 members on the platform right now. The site has facilitated about 50 deals.