Diversifying Suppliers Enables Resilient Supply Chains

Robust supply chains are critical to the growth of the electronics industry, ensuring consistent access to essential components and mitigating disruptions that can delay production. A resilient, diversified supply network enables manufacturers to scale efficiently and respond quickly to market demands and technological advancements.

In an era marked by rapid technological advancements such as AI, electric vehicles, and the transition to 6G, the global electronics manufacturing landscape is on the cusp of transformative growth.

Pankaj Agarwal, COO of UniBuild.ai, delves into these pivotal shifts in an exclusive interview with IGNITO.

He discussed how UniBuild’s global platform is simplifying supply chains, fostering resilient manufacturing ecosystems, and positioning India as a significant player in the ESDM sector.

How do you see the evolution of the global electronics manufacturing landscape in the next 5 to 10 years? What role can UniBuild play in the transformation of ESDM sector in India?

Aggarwal: We’re witnessing major technological               shifts—like advancements in AI, the rise of autonomous and electric vehicles, and more—which are driving up the demand for electronics. As a result, the electronics industry is poised for significant growth. We’re also rapidly transitioning from 5G to 6G, and this will bring new inventions, devices, and use cases for electronics. The government has set ambitious goals for the sector, and all industry players are working towards them. The growth we’re expecting in electronics will be similar to the boom the automotive industry experienced 20 years ago.

Now, speaking about UniBuild, it’s a platform that helps companies improve their global sourcing. A key challenge for any business looking to grow in this sector is establishing supply chains, which isn’t easy. Even with access to technology and government support, setting up supply chains or manufacturing plants takes a lot of time and involves heavy investment in capital equipment.

UniBuild operates in 50 countries and can simplify the sourcing process and supply chain setup for any organization. We can assist with everything from setting up plants to sourcing raw materials, indirect materials, and capital equipment.

By helping companies focus on their core strengths, like technology, we can speed up their time to market. This is especially important for companies investing in India, where it can take years to get operations off the ground. UniBuild can prepare the groundwork before they arrive, making it much easier for them to launch in India.

With India positioning itself as a global hub for electronics manufacturing, what are the key growth drivers that you believe will propel the sector forward? How can the industry overcome challenges such as supply chain disruptions and semiconductor shortages?

Aggarwal: There are several key drivers, like advancements in AI, the electrification of vehicles, and the shift from 5G to 6G. These trends are creating a massive global demand for electronics, which will really fuel the industry’s growth.

When it comes to challenges like supply chain disruptions and semiconductor shortages, one of the main issues is that many companies rely on just one or two suppliers or regions for their sourcing. This can lead to disruptions when things go wrong.

Supply chain disruptions are inevitable due to various global events and socio-economic situation, but we can’t let that hold us back. The key to a resilient supply chain is diversifying your suppliers across multiple countries. However, not every company, even if they’re great at manufacturing, has the expertise to manage this.

That’s where UniBuild comes in. We help companies set up strong, diversified supply chains across 50 countries, making them more resilient. The same goes for semiconductor shortages. For instance, during the shortage two years ago, we helped many companies navigate the crisis.

How is UniBuild creating smart factories in the electronics manufacturing space? Can you share any specific use cases or success stories?

Aggarwal: UniBuild is enabling manufacturers to expand their production capacity across different areas, like plastic or metal parts, without having to make everything in- house. Normally, when a company sets up a factory for electronics, they aim to produce everything themselves, which drives up capital expenses and limits their overall capacity due to these costs.

For example, if a company is making an electronic component, they might also need non-electronic parts, which would require additional investment. UniBuild helps them by offering the option to source those components externally, reducing the need for heavy capital investment.

This has two main benefits: it lowers the capital required, and companies can use government incentives, like the Production Linked Incentive (PLI), more efficiently for core technology rather than spending it on things like a moulding machine. It also speeds up product launches, increases capacity, and improves returns on investment.

We’ve worked with multiple clients worldwide, providing them with sourcing solutions for machines and manufacturing parts. For example, we supply castings for robotic arms and moulding machines. Instead of investing heavily in equipment, companies source these complex components from us, allowing them to focus on their core operations.

In the post-pandemic era, supply chain disruptions have been a major concern. How is UniBuild’s technology addressing these issues in the electronics manufacturing sector?

Aggarwal: Supply chain disruptions have impacted not just the electronics industry, but many others too. One key realization, even among OEMs, is that larger players are better equipped to handle these disruptions. Smaller, fragmented suppliers often don’t have the capacity to absorb shocks when something goes wrong. This has been a big lesson from the pandemic.

Larger suppliers, like those UniBuild works with, can manage disruptions more effectively. If there’s an issue in one location, they can shift operations to another. UniBuild ensures supply chain resilience across 50 countries, offering solutions for various products under one roof, which reduces the chances of errors and delays.

In India, many smaller electronics companies don’t have much leverage when it comes to supply chains. During shortages, suppliers often prioritize bigger clients, leaving smaller companies struggling. UniBuild helps these smaller players by providing them with more robust supply chain support, so they can overcome these challenges.

What differentiates UniBuild from other companies in the electronics manufacturing space? What are your key competitive advantages?

Aggarwal: The biggest thing that sets UniBuild apart is our scale. We’re spread across 50 countries and have 400 plants in various locations. Plus, we’re involved in multiple industries—automotive, electronics, wiring harness, lighting, aerospace, health, and medical components— which has given us a deep understanding of various technologies.

The electronics industry is unique, but at the core, it’s about manufacturing, setting up plants, and running supply chains efficiently. UniBuild brings robustness to supply chains thanks to our experience across different industries. We can also bring in technology from anywhere in the world, which is crucial in today’s market.

Another advantage is that we provide capital equipment. Many companies in the electronics industry in India source their equipment from abroad, and they often struggle with sourcing and negotiating with the right suppliers. UniBuild makes this easier by having expertise in taxes, legalities, and international sourcing.

We’ve also developed a world-class IT system—one of the best in the world—that offers complete transparency throughout the entire process, from customer and supplier discovery to registration, KYC, logistics, and payments. These are just some of the factors that make UniBuild stand out.

How is UniBuild planning to expand its footprint, both domestically and internationally? Are there any specific regions or markets that you are targeting √or growth?

Aggarwal: We’re already present in 50 countries and have our own plants in 44 of them. We’re also working with around 40,000 supply chain partners worldwide, with a strong customer base in places like India, Japan, Europe, the Americas, the Middle East, and Africa.

We understand the ins and outs of different markets, including things like taxes, legalities, and logistics, so our expansion is happening quickly. As for targeting specific regions, there’s no fixed plan—it really depends on what our customers need. We’re here to support them, no matter the region or market.

Does UniBuild collaborate with other major electronics manufacturing players or technology providers? Can you share any examples of partnerships that have contributed to industry advancements?

Aggarwal: While I can’t share specific partnership details right now, we do work with a variety of customers across different industries, including electronics. We’re partnering with some rapidly growing electronics companies, working closely with them to improve their supply chains.

That being said, there’s still a lot of potential in the electronics industry, but it’s important to recognize that companies don’t need to do everything in-house. Outsourcing and leveraging the existing market ecosystem can help them grow faster.

The problem with trying to do everything yourself is that it ties up a lot of capital in investments. Since the industry evolves so quickly, those investments can become outdated in just a few years. It’s better to use the ecosystem and avoid falling into the trap of trying to save money by doing everything internally—it can actually slow down growth.

Instead, companies should focus their investments on technology, rather than spending on things like molding machines for plastic parts, which can easily be sourced externally. That’s where UniBuild can make a big difference, helping companies grow smarter and faster.