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Introduction: The Backbone of India’s Manufacturing Economy Walk into a small factory in India today, and you’ll see both grit and untapped potential — idle machines, delayed supplies,
/indianstartupnews/media/media_files/2025/08/21/rawmart-team-2025-08-21-18-40-43.png?w=803&resize=803,490&ssl=1 "How This Pune-Based Startup is Revolutionizing SME Manufacturing in India")
Walk into a small factory in India today, and you’ll see both grit and untapped potential — idle machines, delayed supplies, and owners juggling thin margins. Small and Medium Enterprises (SMEs) form the backbone of India’s manufacturing economy, contributing nearly 30% to GDP and employing over 100 million people. Yet, despite their importance, many SMEs remain stifled by fragmented supply chains, inconsistent raw material access, and cash flow challenges.
SMEs drive India’s industrial heartbeat. They produce everything from automotive parts to pharmaceutical packaging and construction materials. However, what truly defines their significance is their role in inclusive growth — they generate local employment, foster regional innovation, and reduce dependence on large corporations.
Still, without access to stable supply chains, credit, and technology, many SMEs struggle to scale. This is where Rawmart, a Pune-based startup, is quietly transforming how SME manufacturing in India operates.
Rawmart was founded in 2021 by Shrenik Bora, Saurabh Rana, and Tejas Changede, who saw firsthand how capable factories failed to compete due to broken systems rather than lack of skill. They believed Indian SMEs could meet global manufacturing standards — if given the right ecosystem of supply, credit, and technology.
The founders identified four recurring pain points:
Their mission was clear — build an integrated ecosystem that would empower SMEs to compete globally while maintaining profitability and sustainability.
Starting with minimal resources, Rawmart began sourcing high-quality steel parts for small factories. Within three years, it was delivering over one million precision steel parts with near-zero rejection rates — a remarkable feat in Indian manufacturing, where rejection averages can exceed 5–7%.
Unlike traditional suppliers, Rawmart doesn’t just sell materials. It connects SMEs with everything they need to thrive — raw materials, financing, technical guidance, and access to new markets. This approach transforms Rawmart into a growth partner rather than a mere vendor.
Rawmart has built a technology-first platform that leverages predictive modeling to anticipate demand and align it with available capacity. This minimizes wastage, optimizes delivery timelines, and enhances decision-making for both SMEs and large enterprises.
Through data-driven insights, Rawmart can forecast material needs, monitor production in real time, and automate sourcing decisions — reducing delays and improving transparency.
Access to working capital has long been a bottleneck for SMEs. Rawmart solves this by aggregating credit from financial partners, giving factories the flexibility to purchase raw materials and manage cash flow. Combined with its digital procurement tools and production analytics, SMEs experience smoother operations and higher margins.
A unique element of Rawmart’s approach is aggregating idle SME capacity across India. By analyzing machine downtime and production cycles, the platform allocates excess capacity to new projects — effectively creating a shared manufacturing network.
Rawmart integrates modular design systems and custom automation tools to standardize production quality. Its in-house quality plans ensure every product meets stringent specifications. This has led to minimal rejection rates, significantly improving efficiency and client trust.
Rawmart Labs, the startup’s innovation hub, focuses on developing new products and technologies that go beyond replication. It helps SMEs create unique, high-value engineering solutions that open new market opportunities and improve productivity.
The lab also prioritizes sustainability — recycling scrap metals and plastics, designing safer machines, and developing green manufacturing systems. This dual focus on innovation and environmental responsibility positions Rawmart as a leader in sustainable SME manufacturing in India.
Rawmart now serves 140+ clients across industries such as infrastructure, pharma, FMCG, solar, and railways. Its footprint spans 14 states and 250+ pin codes, with partnerships extending to multinational corporations.
In just three years, the company grew from $3.5 million in revenue to over $10 million, all while remaining bootstrapped and profitable — an achievement few Indian manufacturing startups can claim.
India’s SME sector is often limited not by skill, but by systemic inefficiencies. Rawmart addresses these by:
These strategies empower SMEs to compete with larger manufacturers both domestically and globally.
Traditional procurement models rely on traders and agents, often leading to delays and inconsistent quality. In contrast, Rawmart provides end-to-end visibility, from material sourcing to delivery, integrating credit, production, and innovation into one platform.
As the founders put it, “We don’t just sell materials — we design new products, optimize SME production, and ensure quality. That makes us a growth partner, not just a supplier.”
Rawmart plans to digitize SMEs using IoT-based monitoring, ERP systems, and robotic process automation to enhance efficiency and safety across manufacturing clusters.
Looking ahead, the company aims to expand into Asian and European markets, offering turnkey solutions and end-to-end industrial ecosystems that align sustainability with scale.
1. What is SME manufacturing in India?
It refers to small and medium-sized enterprises involved in producing industrial goods, machinery, and consumer products across India.
2. What challenges do SMEs face in the manufacturing sector?
They often deal with fragmented supply chains, lack of credit, inconsistent quality standards, and limited access to advanced technology.
3. How is Rawmart helping SMEs grow?
Rawmart supports SMEs with raw materials, credit, innovation through Rawmart Labs, and technology-driven procurement systems.
4. Is SME manufacturing in India profitable?
Yes, but profitability depends on efficient supply chains, consistent demand, and access to innovation — areas Rawmart actively addresses.
5. How does Rawmart ensure product quality?
Through data analytics, modular design systems, and stringent quality plans tailored to each production cycle.
6. What’s next for SME manufacturing in India?
Digitization, automation, and sustainable manufacturing are driving the next wave of industrial transformation.
Rawmart’s story is a powerful reminder that India’s industrial growth depends on its SMEs — and that innovation, when combined with data and sustainability, can transform even the smallest factory into a global contender.
By tackling fragmentation, unlocking capacity, and empowering entrepreneurs, Rawmart is not just improving SME manufacturing in India — it’s reshaping the future of Indian industry itself.
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