ProcMart, a B2B marketplace for indirect procurement solutions, announced the acquisition of a corrugated box manufacturing facility in Aurangabad, Maharashtra. This milestone acquisition marks ProcMart's first manufacturing investment and significantly enhances the company's capabilities in the packaging segment.
The newly acquired facility, established in 2015, has commenced operations under the ProcMart Packaging banner and currently generates an annual revenue of Rs 25 crores. With a robust monthly production capacity of 1,000 metric tons and over 50 skilled employees staffed, the plant is equipped with fully automatic and semi-automatic manufacturing technologies to serve ProcMart's expanding clientele across pharmaceuticals, FMCG, automotive, and consumer durables sectors. This acquisition aligns perfectly with ProcMart's sustainability initiatives, as the facility utilises biofuel-powered boilers for machine operations. This integration of eco-friendly practices reinforces ProcMart's commitment to helping its Fortune 500 clients achieve their carbon neutrality goals through environmentally responsible procurement solutions.
Anish Popli, Founder and CEO of ProcMart, said, “This strategic move into manufacturing represents a transformative leap in our journey to revolutionise B2B procurement in India. Backward integration into packaging production enables direct control over quality and timelines. This facility establishes our blueprint for vertical integration across other product categories and positions ProcMart as a comprehensive procurement partner. 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.”
The company plans additional investments to scale the facility's production capacity to 2,500 metric tons per month, which would unlock up to USD 150 million in additional annual sales potential. This expansion is projected to achieve 100% year-over-year growth in the first two years, followed by 50-60% growth in subsequent years.
Sachin Jain, Chief Financial & Strategy Officer, ProcMart, added, “With the addition of our dedicated manufacturing packaging plant, ProcMart is set to achieve new benchmarks in procurement by delivering high-quality solutions. 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. This integration enables us to provide even greater control, efficiency, and value to our clients under one roof while strengthening our position in the trillion-dollar Indian B2B market.”
The Aurangabad facility acquisition supports ProcMart's expansion into biofuels and sustainable packaging, complementing its existing procurement solutions in the $30 billion MRO segment. Strategically located in one of India's key industrial belts, this plant will directly cater to ProcMart's extensive client base in the Aurangabad-Pune-Mumbai corridor and across Maharashtra, significantly reducing delivery times and logistics costs. ProcMart currently serves a distinguished client roster that includes 50%. Fortune 500 companies that increasingly prioritise sustainability in their supply chains. This manufacturing footprint enhances the company's ability to deliver end-to-end packaging solutions while maintaining strict quality control and meeting environmental standards. ProcMart plans to deepen its presence across critical industries such as MRO, biofuel, utility services, and non-specialty chemicals.
