The venture is bringing together manufacturers to share their unitilised production capacity
No company would like to see its production capacity being used by a rival. Right? But perhaps it would. At a time when we have shared rentals, shared vehicles and even shared workspaces, sharing manufacturing capacity isn’t such an alien concept. A new venture called Shareconomy is bringing together manufacturers to share their unutilised production capacity, the idea being that effective spare capacity utilisation can help eliminate the need of major capital investment. It is currently working with companies from over 100 sectors including dairy, painting, agriculture, games and toy manufacturing. And small and big manufacturers such as Chitale Dairy, ITC, Global Consumer Products, Baker Perkins UK, Top Gear, Shakti Bhog, Ghodawat Consumer Products have found benefit in the idea.
“The idea behind this was that capacity utilisation has always been a challenge for any new capacity installed or for those who are already established,” says Jayesh Desai, founder and chairman, Shareconomy. “Any aspiring entrepreneur struggles to raise capital to start his own business. In a sector with high capital inflow, underutilisation of the capacities will be a huge loss for overall business growth.”
Shareconomy was registered in November 2015 and was soft-launched in August 2017 by Desai, group chairman of Rajhans (Desai-Jain) group. About `25 crore has been pumped into the venture by Rajhans (Desai-Jain) Group. This new start-up is an addition in the group vertical.
Micro, small and medium enterprises (MSME) are its target customers. Once an MSME creates an account at Shareconomy, the start-up provides it a list of capacities from which it can choose its required capacity. Capacity seekers/MSMEs are then provided with a platform to post their needs and find the best option from a pool of capacity owners registered on the platform. Preferred location, facility certifications, videos and photographs of the facility, ratings and reviews to establish credentials, type of machinery used, logistics convenience, infrastructure, etc., are all listed.
Contracts between seekers and owners are generally long term and not a one-time kind of deal, points out Desai. Therefore, Shareconomy enables seekers and owners to connect directly and evaluate capabilities of each other before actually signing the contract. It further provides services like technical due diligence. “Shareconomy will soon launch a mobile version of industrial capacity utilisation platform,” he adds.
At present, Shareconomy is looking at online subscription to drive connectivity; it has plans to include business analytics and business category defined sales. “Affiliate marketing through category partners is another income stream we are exploring, besides focus on online advertising, allied services and transaction fees. Over the next two to three years our approach will be to retain the subscription model but replace the CPM (cost per mille) or CPC (cost per click) approaches with new channels to ensure more negotiating power,” he says.