'We are finally coming out of post-pandemic supply chain disruptions'

Moglix, which was established by Rahul Garg in 2015, is a Noida-based industrial business-to-business marketplace for industrial tools and equipment. Rahul Garg discusses the company's strategy for re-focusing on human capital during widespread layoffs and the effect of the recession on trade and financial channels.

With most start-ups rearranging their organisation towards leaner teams, how does Moglix intend to realign its human capital focus amid layoff news?
In 2022, we accelerated our growth plans and hired over 700 individuals. We plan to continue expanding and aim to bring on an additional 300+ employees in 2023. We continuously monitor performance and automate tasks that may result in 2-3% of employees being affected. However, our commitment to customer service and excellence remains unchanged, as such we invest in various development initiatives and upskilling programs to keep our teams skilled and aligned to our growth and vision at Moglix.

How do you see the domestic demand getting impacted due to recessionary waves across the world?
Despite the threat of global slowdown, India remains beacon of hope owing to several factors of strength in Indian economy with Automotive, Industrial manufacturing and Pharmaceuticals sectors being most optimistic. Although India may not be able to completely escape the spillover effects of recessionary fears, we need to analyze that global shocks spread to the domestic economy through four main channels — trade flows, commodity prices, capital flows and financial sector.

As global demand slows down, India is unlikely to be immune with the trade and capital channels being the key risks and determinants of India’s growth, however, India's manufacturing sector activity reached a one-year high in December, helped by solid demand conditions and healthy inflows of new business. India is finally coming out of post-pandemic supply chain disruptions supported by increased spending on tech-enablement, product diversification and favorable economic conditions. The Indian manufacturing sector continued to perform well after a good start to 2022, ending the year with the best increase in production since November 2021 which will fuel the domestic economy in 2023.

With sunrise sectors such as digital economy & alternative energy coming to foray, what is your perspective on Indian start-up ecosystem driving them?
Startups are an integral aspect of a larger corporate environment developing solutions that have an impact and serve as engines for socioeconomic change. Top international investors perceive India today as a nation with great potential owing to vast human capital, sizeable unexplored markets, various cultures, and spending habits, all of which are supported by extremely entrepreneur-friendly government measures. With over 100 unicorns, there’s no denying that startups in sectors like Fintech, Health-Tech, EdTech, Cleantech, B2B SaaS, e-commerce, Media-Tech, Agri-Tech, Food-Tech, artificial intelligence, nanotechnology, space technology are driving the next wave of growth towards India becoming a $5 trillion economy. Some testimonies to this are: Indian SaaS firms are anticipated to generate 500,000 new jobs by 2030 and Fintech entrepreneurs are quickly closing the country's microcredit gap by providing low-cost digital solutions to the thin-file consumer sector.

What are the major growth drivers for Moglix for the next 2-3 quarters?

Moglix being India’s one of the leading B2B e-commerce and digital supply chain solutions provider is creating global footprints in the space of industrial goods & supply chain. We are on growth trajectory wherein we are looking ahead at exponential growth and acquisitions are an integral strategic focal point of this. As we realise our mandate for growth and global expansion, we will continue to utilize funds to build a strong product portfolio and digital supply chain network for our customers and create value for all stakeholders. Moglix has major expansion plans for the Indian market and overseas. We entered the US market last year and are looking to broaden the horizon into Indian micro markets, which comprises energy, electric vehicles, hydrogen, and solar verticals. Also, Moglix will be part of several national infra projects that will enable us to become part of nation building along with being a major growth driver for us.

What future trends are likely to shape Indian Manufacturing industry?

Manufacturing plants and factories are about to cross the threshold of the adoption of the smart factory, shifting from the occasional or sporadic use of smart equipment to more comprehensive systems that utilize data analytics and connectivity between machinery and centralized monitoring tools. One of the major trends that will define manufacturing in 2023 is adoption of agile supply chain with strategic, proactive contingency planning, and supplier diversification. Second, Manufacturing will be outsourced by more businesses. In 2023, we'll observe a surge in outsourced production as a means of lowering operational expenses and putting more emphasis on core capabilities and MaaS (Manufacturing as a Service) becoming mainstream. Third, global production centers will look forward to making digital manufacturing part of their strategic focus. Covid-19 gave manufacturing companies a significant wake-up call that implementing digital production tools was no longer an option. Now that we are likely into a recession, it is essential.

How does Moglix make an impact on MSME sector in the country?

Moglix offers an e-catalogue with 3 Lac products covering 50+ MRO categories for easy procurement for small & medium businesses, just a click away with complete traceability and delivery. Moglix has been covering MSMEs across the country including hinterlands and remote locations with optimized pricing and logistics. Our Value engineering solutions include applicable recommendations for locally manufactured components & spare parts assisting local businesses across the country to flourish. Credlix, our capital financing arm, facilitates small businesses to avail collateral-free capital with minimal paperwork enabling local exporters and manufacturers to grow their business. We have been able to transform over 4000 MSMEs through Credlix.

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