Manufacturing Startups To Watch: 5 Startups That Caught Our Eye In July

For years, India’s manufacturing story has centred around achieving scale and a perennial push to set up more factories to enable higher production and larger export volumes.

While the manufacturing push continues to grow as strongly as ever, a quieter shift within the industry is underway. Now, startups are increasingly focused on building tech that powers manufacturing itself.

With the Industry 4.0 revolution underway, India’s manufacturing startups are endeavouring to drive innovation in industrial robotics, advanced materials, semiconductor design, energy-efficient cooling systems, and next-generation manufacturing processes.

The trend has become more visible in recent weeks, with an increasing number of investors actively deploying capital in bolstering this growth. For instance, robotics startup Mowito raised $3 Mn, while battery recycling startup BatX Energies secured ₹105 Cr to strengthen India’s domestic supply chain for critical battery materials. 

The momentum, however, extends beyond venture funding. India’s engineering exports touched a record $122.4 Bn in FY26, accounting for nearly 28% of the country’s merchandise exports, while the government continues to invest heavily in semiconductor manufacturing and advanced electronics. 

Against this backdrop, the next wave of manufacturing startups is focusing less on producing finished goods and more on solving the industry’s toughest engineering challenges — from reducing energy consumption and making textile production cleaner to improving rehabilitation technology and designing semiconductor chips.

With this, we bring to you the fifth edition of ‘Five Manufacturing Startups To Watch‘, featuring startups that are reimagining how things are designed, built and manufactured in India. 

From repurposing discarded tyres to reinventing how wool-denim fabrics are manufactured, the next wave of manufacturing startups is solving niche industrial challenges that could shape the sector’s next phase of growth.

Without further ado, here are the five manufacturing startups that caught our eye in July.

Editor’s Note: This list is not a ranking. It is a curated selection of manufacturing startups that have stood out to the Inc42 editorial team this month.

Albatross Energetics | Smart Humidity Control Mechanism For Factories 

Humidity control is as critical as temperature regulation in industries such as pharmaceuticals, electronics manufacturing and food processing. Excess moisture can affect product quality and manufacturing processes. However, conventional HVAC systems typically remove humidity by overcooling the air, making them energy-intensive and a costly affair.

Founded in 2021 by Srihari B and Sudarsan MS, Albatross Energetics develops liquid desiccant-based air treatment systems that remove moisture from the air more efficiently than conventional HVAC systems. 

Built by a team from IIT Bombay and IIT Madras, the startup aims to help industrial and commercial facilities reduce energy consumption while maintaining precise humidity levels.

For context, a desiccant is a hygroscopic substance used to induce or maintain dryness in its vicinity by absorbing or adsorbing moisture from the air. With these materials, like silica gel, molecular sieves, etc, at its base, Albatross offers industrial products like air handling units (AHUs) for factories, clean rooms and commercial buildings, as well as technology that HVAC manufacturers can integrate into air conditioners and dehumidifiers. 

According to the startup, its systems can reduce operating carbon emissions by about 15% while improving humidity control.

Albatross is targeting India’s growing HVAC market as businesses increasingly look to lower operating costs, meet sustainability goals and improve indoor air quality. The domestic HVAC market is projected to grow from $12.14 Bn in 2025 to $17.41 Bn by 2030.

IndigoTex | Shaping The Future Of Denim

As fashion brands face increasing pressure to reduce water consumption and adopt more sustainable manufacturing practices, businesses in the textiles industry are exploring new materials and production techniques that minimise environmental impact without compromising performance. 

Conventional denim production is highly water-intensive, while traditional wool fabrics cannot easily be dyed with indigo without affecting their quality.

Founded in 2024 by Satendra Singh, Dilip Singh and Bhupendra Singh Butola, IndigoTex develops wool-denim fabrics using a proprietary textile tech. Incubated at IIT Delhi’s Research & Innovation Park, the startup says it has developed the world’s first process for applying authentic indigo dye to wool while preserving the fabric’s natural properties.

Its product portfolio includes IndiWool, a wool-rich denim fabric designed for year-round use, and ECOTEX, a waterless wool-finishing tech that eliminates the water and chemicals used in conventional processing. Its manufacturing process reduces water and energy consumption while eliminating toxic waste.

The startup is targeting apparel brands, workwear manufacturers, and home textile companies as demand grows for high-performance fabrics whose production is also sustainable. Built in India, the startup could target the growing global sustainable fabrics industry, which is projected to grow from $36.8 Bn in 2025 to about $120 Bn by 2035.

REGRIP | Giving Old Tyres A Second Lease On Life

What happens to end-of-life tyres? The sad reality is that while millions of such tyres are discarded every year, most end up in landfills.

As per NITI Aayog, India generates roughly 2.8 Mn metric tonnes of waste tyres annually. This translates to about 2.75 Lakh discarded tyres every single day.

This is precious reusable material. Identifying this gap, ex-FLEECA executive Tushar Suhalka founded REGRIP in 2021 to re-engineer tyres with tech.

Based in Delhi NCR, REGRIP develops refurbished tyres and digital tyre management solutions that help extend tyre life while reducing waste. The startup claims to recycle around 1 Lakh tyres every year, saving up to 20,000 metric tonnes of carbon emissions. 

Using retreading and shearing processes, the startup manufactures re-engineered tyres for commercial purposes that it says have low rolling resistance, high enforced tread, optimum tread design and a balanced polymer filler.

Beyond tyre manufacturing, REGRIP also provides software that helps fleet operators track tyre health, manage inventory, inspect used tyres and digitise the entire retreading process. It also offers scrap tyre management and inspection services. The startup operates in India’s tyre recycling market, projected to expand to $3.05 Bn by 2033. 

Rymo Technologies | Bringing Robotics To Rehabilitation

Founded in 2020 by Chirag Shah and Abhishek Rai, Rymo Technologies develops portable rehabilitation robots and medical devices that help physiotherapists automate therapy sessions and track patient recovery using real-time data.

The startup is bidding to address a larger concern emerging within the Indian populace. The country’s rehabilitation sector is experiencing a rapid surge in demand, driven by an alarming rise in neurological disorders like strokes affecting younger demographics and a surge in sports-related injuries. 

Rymo’s portfolio includes MOBI-L, a robotic device for upper- and lower-limb rehabilitation, MEND, a digital balance training platform, and NUDGE, a gamified system designed to improve cognition, reflexes and coordination. These devices enhance therapists’ ability to deliver more efficient rehabilitation and effectively monitor patient progress.

The startup has seen early traction for its products as well, claiming to have installed more than 700 systems across more than 550 healthcare facilities. Its customers include Apollo Hospitals and more than 550 healthcare facilities across India.

It is targeting the global rehabilitation technology market, which is projected to grow from $2 Bn in 2026 to $4.36 Bn by 2034, driven by increasing demand for technology-enabled rehabilitation and physiotherapy solutions.

Vellore Semicon | Closing India’s Chip Design Gap 

As India works to strengthen its homegrown semiconductor ecosystem, the industry is seemingly becoming more and more lucrative by the day. With domestic production of chips afoot, new contracts and opportunities for companies developing the electronic components that power everything from industrial equipment to consumer electronics are on the rise.

Founded in 2025 by Nandagopal Bhuvanraj and Kaarthik Chandrasekaran, Vellore Semicon designs semiconductor chips and electronic components for industrial and embedded applications. 

The Bengaluru-based startup is approved under the Government of India’s Design Linked Incentive (DLI) scheme.

Its work covers end-to-end chip design, custom semiconductor components and electronic building blocks such as logic chips, signal converters and protection devices used in a wide range of electronic systems. The startup also helps customers take products from the design stage to fabrication-ready chip designs.

As the country’s semiconductor ecosystem races to cross the $180 Bn mark by 2034, Vellore Semicon is positioning itself as a homegrown chip design startup serving electronics, industrial and automotive manufacturers.

With Inputs From Venu Rathore & Akshit Pushkarna
Edited by Akshit Pushkarna
Creatives by Abhyam Gusai

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