Blogs
In today’s interconnected global economy, many of the products we use daily — from smartphones and electric vehicles to kitchen appliances and heavy machinery — share one common secret: they are often built by companies you’ve never heard of. Welcome to the powerful, yet often overlooked world of OEM (Original Equipment Manufacturer) manufacturing.
At its core, an OEM is a company that manufactures products or components that are later marketed and sold by another company under its own brand name. Simply put, OEMs build the product, while their clients own the brand and manage customer-facing activities.
1. Focus on Core Business
Brands today prefer focusing on R&D, marketing, and customer experience — outsourcing complex manufacturing to specialized OEM partners.
2. Cost Efficiency
OEMs help brands avoid heavy capex investments in factories, equipment, and labor. This asset-light strategy increases profitability.
3. Speed to Market
OEMs allow companies to launch products faster, responding quickly to new trends, technologies, and customer demands.
4. Access to Expertise
OEM manufacturers often possess deep technical know-how in niche areas like automotive parts, electronics assembly, medical devices, and aerospace components.
5. Globalization of Supply Chains
Cross-border trade agreements, advanced logistics, and digital supply chain management have made global OEM collaborations seamless and scalable.
OEM Manufacturing Market Snapshot Global OEM market size (2023) : Over $1 trillion across industries.
Top Sectors Utilizing OEMs: Automotive, Consumer Electronics, Heavy Machinery, Healthcare Devices, Renewable Energy Equipment.
India’s OEM Strength: India is emerging as a global OEM hub, thanks to:
Skilled manufacturing talent
Competitive cost structures
"Make in India" and PLI (Production Linked Incentive) schemes
Rising domestic demand and export opportunities
Sectors like EV components, solar energy equipment, and precision engineering parts are witnessing exponential OEM growth in India.
Challenges OEMs Must Navigate
Quality assurance at scale
Managing client confidentiality
Pricing pressures from global brands
Adapting to ESG and sustainability norms
Supply chain disruptions and geopolitical risks
However, those who invest early in automation, green manufacturing practices, and client diversification are not just surviving — they are thriving.
At Equism, we see OEM manufacturing as a strategic pillar for India's industrial and economic growth. We actively fund small and mid-sized OEMs who are expanding into next-generation sectors like:
Electric vehicles and batteries
Aerospace and defense components
Smart medical devices
Renewable energy systems
We also guide our portfolio companies on ESG adoption, helping them meet global sustainability standards — a key differentiator as OEM clients increasingly prefer ethical and green supply chains.
OEMs may operate behind the scenes — but they are the builders of the brands we love.
At Equism, we are proud to support these creators, innovators, and manufacturers who are shaping the products — and possibilities — of tomorrow.
