Interview with CNBC: Rajesh Ahuja on ₹ 100 crore Funding
Mumbai-based Economy Process Solutions, a leading provider of vacuum and process solutions, has secured ₹100 crore in Series A funding from Stakeboat Capital. The company plans to use the funds to accelerate growth, expand its in-house product portfolio, strengthen its global presence, and venture into new categories such as food and beverage (F&B) solutions.
In an interview with CNBC’s Startup Street, Rajesh Ahuja, Founder and CEO of Economy Process Solutions, shared insights into the company’s roadmap. He stated that Economy Process Solutions will allocate nearly half of the funds to its F&B solutions segment. This includes a joint venture with Omnia Technologies, an Italian multinational corporation, expected to commence operations on December 1st. The remaining funds will be invested in setting up manufacturing facilities in Pune to produce vacuum pumps locally, aligning with the government’s ‘Make in India’ initiative.
Discussing global expansion plans, Rajesh highlighted that Economy Process Solutions is prioritizing the Middle East and African markets where the company already has a presence. With this investment, Economy Process Solutions aims to enhance its offerings as a Vacuum and process solutions company, improving its price competitiveness, and investing in marketing to strengthen its brand recognition and market acceptance in these regions.
When asked about the company’s recent expansion into the beverage industry, Rajesh explained that Economy Process Solutions provides equipment for both processing and packaging in beverage manufacturing. Leveraging its partnership with Omnia Technologies, the company will benefit from advanced expertise in filling, labeling, and packaging while utilizing its vacuum pumps in manufacturing processes, many of which operate under vacuum.
In addition to F&B, Rajesh emphasized that Economy Process Solutions already holds a significant presence in the pharmaceutical API sector, as well as chemical and agrochemical industries in India, the Middle East, and Africa. The company’s process and vacuum solutions are also integral to waste oil and glycol recycling plants, showcasing its expertise in sustainable solutions.
On the topic of manufacturing expansion, Rajesh highlighted that Economy Process Solutions operates two facilities in Chakan, Pune, located within 2 kilometers of each other. The first facility is focused on vacuum pump production and will quadruple its output capacity once the new Korean-supplied equipment is operational in 4–5 months. The second, a newly built 150,000-square-foot plant, will specialize in process equipment manufacturing with automated systems to meet increasing demand projections.
Rajesh also discussed the company’s growth outlook, noting that exports currently account for 40% of revenue. With plans to scale its presence internationally, Economy Process Solutions expects exports to contribute 60% of its revenue within the next three years.
As Economy Process Solutions continues to expand its product range and global footprint, it is set to strengthen its position as a leader in providing cutting-edge vacuum and process solutions across industries.
Economy Process Solutions Secures 100 Crores in Series A Funding:
Economy Process Solutions, based in Mumbai and a vacuum and process solutions specialist, has successfully raised 100 crores in its Series A round of funding from Skateboard Capital. This funding will allow the company to accelerate its business growth, widen the range of manufactured in-house products, and expand globally. Besides, Economy Process Solutions has forayed into new categories, particularly in Food and Beverage (FNB).
During a recent interview, Rajesh Ahuja, the founder and CEO, shared insights into the company's future growth roadmap.
Strategic Allocation of Funds:
In a recent discussion, Rajesh Ahuja elaborated on the strategic deployment of the 100 crores secured from investors. He indicated that half of the funds would be allocated towards the company's FNB solutions, particularly through a joint venture with Omnia Technologies, an Italian multinational corporation. This partnership is expected to commence operations by December 1 of this year.
Ahuja emphasized that the remaining funds would focus on establishing manufacturing facilities in Pune for vacuum pumps, which are currently imported from Korea. This initiative aligns with the Indian government's "Make in India" initiative, aiming to produce a complete range of vacuum pumps domestically.
Global Expansion Plans:
Economy Process Solutions is also eyeing international markets, particularly in the Middle East and Africa. Ahuja noted that the company has already established some business in these regions and anticipates the new investment will enhance its offerings and improve price competitiveness. Most of the funding will also be directed towards marketing efforts to bolster brand acceptance in these international markets. The CEO expressed optimism that the company's enhanced capabilities would facilitate its acceptance and growth in these regions.
Diversification into the FnB Sector:
The company is strategically expanding its footprint in the beverage industry, focusing on both the processing and packaging aspects of beverage manufacturing. Ahuja explained that the processing part involves generating the liquid to be bottled, while the packaging includes filling and labelling. The collaboration with Omnia Technologies will leverage their expertise in this domain, particularly in vacuum processes, which are crucial for manufacturing. Ahuja's vision includes integrating vacuum pumps into these processes to enhance efficiency and quality.
Manufacturing Capabilities and Future Prospects
Economy Process Solutions is expanding its manufacturing capabilities to meet increasing demand projections. The company operates two facilities in Chakan, located near each other. The first facility will focus on vacuum pump manufacturing, with new equipment expected to enhance production capabilities significantly. Meanwhile, a new 150,000-square-foot facility is being developed to automate manufacturing processes further. Ahuja noted that the company currently derives approximately 40% of its revenue from exports, with plans to increase this figure to 60% over the next three years.
Conclusion:
This funding milestone, being the launchpad for great growth for Economy Process Solutions, changes the company's focus. Plans to grow the product range, boost manufacturing capabilities, and extend international reach mark promising avenues ahead. Rajesh Ahuja confirms that by 2025, the company will emerge with a strong footing as the leading firm across the pharmaceuticals, chemicals, and waste management sectors. In nurturing these ambitious goals, the prudent disbursement of the recent funds could act as a catalyst that would place Economy Process Solutions - a Leading Vacuum & Process Solutions Provider in India, for sustained growth and success in decades.
In light of an article in The Economic Times, "companies based on innovation and strategic partnerships are expected to service the changing environment better." Economy Process Solutions reflects this, exploring innovation and expansion with its recent funding. Moreover, Business Standard stated, "the future of manufacturing lies with automation and local production," a statement that Ahuja supports in establishing Vacuum Pump Manufacturer Plant in Pune Chakan. With all the above insights, Economy Process Solutions can be outlined in the right direction.
