ProcMart Expands into Manufacturing with New Packaging Facility in Aurangabad
ProcMart, one of India’s leading B2B marketplaces for indirect procurement solutions, has entered the manufacturing space with the acquisition of a corrugated box production facility located in Aurangabad, Maharashtra. This acquisition marks the company’s first manufacturing investment, enhancing its capabilities in the packaging sector.
The newly acquired facility has begun its operations and will now function under the ProcMart Packaging brand, generating an annual revenue of INR 25 crore with a production capacity of 1,000 metric tons per month. The facility is staffed with over 50 employees, equipped with fully and semi-automatic manufacturing equipment to cater to its clientele in pharmaceuticals, FMCG, automotive, and consumer durables sectors.
The company’s acquisition aligns with its sustainability initiatives as it uses biofuel-powered boilers for its operations. This initiative helps to support the company’s Fortune 500 clients in meeting their carbon neutrality targets through environmentally responsible procurement solutions.
Anish Popli, Founder & CEO, ProcMart, described the acquisition as a strategic move and a transformative leap in the company’s journey to revolutionize B2B procurement in India. “As manufacturing enterprises continue to seek streamlined procurement solutions, we're building the infrastructure to meet their needs across the entire spectrum of indirect materials,” Popli shared.
Plans are also in place to increase production capacity to 2,500 metric tons per month with the potential to add up to US$ 150 million in annual sales. This expansion is expected to achieve 100 percent year-over-year growth in the first two years, followed by 50-60 percent growth in the following years.
Sachin Jain, Chief Financial & Strategy Officer, ProcMart, emphasized the strategic value of this acquisition, stating, “This acquisition is a crucial stepping stone towards our vision of becoming a one-stop procurement solution for enterprises by establishing our footprint across all major industrial hubs in India.”
On that note, the Aurangabad facility supports the company’s expansion into biofuels and sustainable packaging, complementing its existing procurement solutions in the US$ 30 billion MRO segment and catering to an extensive client base in the Aurangabad-Pune-Mumbai corridor and across Maharashtra.
Image Source: ProcMart