Shaimaa Ibrahim
Supply chains have recently been developed using new technologies like blockchain, artificial intelligence, and enterprise resource planning systems. In addition to improving economic efficiency, these technologies enable quicker reactions to shifts in supply and demand in international marketplaces.
Immensa is among the suppliers of cutting-edge technical solutions that, via offering practical and long-lasting solutions, help to alter the structure and practices of the Gulf region's spare parts supply chain. The company makes use of 3D printing and artificial intelligence.
By enabling companies to flexibly alter and manufacture spare parts for their equipment instead of depending on huge manufacturing operations from industrial corporations situated in South Asia, Immensa hopes to profit on the current gap in the spare parts supply chain in the energy sector.
In this regard, Sharikat Mubasher interviewed Fahmi Al Shawwa, CEO and Co-founder of Immensa, to discuss the company's services, its objectives for 2024, its future plans, and its anticipated investments in the Kingdom and the Gulf area.
How could your services contribute to bridging the gap in the spare parts supply chain in the energy sector in the Gulf region?
Immensa’s pioneering additive manufacturing and digital inventory solutions are revolutionizing the energy spare parts market which has remained unchanged for nearly half a century.
By transforming physical warehouses into virtual ones, we enable on-demand production of spare parts. This innovative model is excellent for the energy sector. Companies benefit from secure supply chains, shorter lead times, and reduced inventory costs. This allows them to minimize unnecessary annual losses (which total c. $30 billion annually) and ensure rapid, reliable, on-demand delivery of critical components.
Immensa’s advanced manufacturing techniques, coupled with its ai empowered platform, facilitates digitization and localization of production - directly addressing inefficiencies and challenges of traditional supply chains.
How are AI techniques used in spare parts manufacturing processes, and how does this contribute to reducing costs?
We utilize AI-powered assessment to digitize and manage spare parts inventories via our platform - Immensa360.
The platform ensures data security, quality control, and efficient workflow lifecycle management of digital assets. By leveraging AI, we can rapidly assess and produce parts on demand, significantly reducing lead times and the cost of maintaining large physical inventories.
Predictive analytics also allows us to forecast demand accurately - ensuring efficient streamlined production and spare parts supply. This minimizes wastage and optimizes cash flow for energy companies.
At Immensa, AI techniques are integral for adopting digital supply chains. Our AI-powered Inventory Assessment includes both technical and commercial evaluations. AI assesses whether parts are suitable for on-demand manufacturing based on materials, criticality, applications, lead time, production costs, and demand. This comprehensive assessment ensures only the most viable parts are produced, reducing unnecessary inventory and storage costs, optimizing production efficiency, and ultimately lowering overall costs.
How could the SAR 75 million investment secured in a “Series B” round contribute to boosting your business?
The SAR 75 million ($20 million) raised in our Series B round will significantly enhance our growth and expansion strategies.
The proceeds will help us scale our digital warehousing solutions, advance development of our AI-enabled platform Immensa360, and expand into new markets. It will also strengthen our efforts to secure high-profile partnerships and achieve essential certifications, such as our DNV Certification for additive manufacturing of metallic parts.
These initiatives all contribute to us maintaining our leading innovation role in the energy sector and delivering cutting-edge solutions.
What about seed rounds in 2024?
As we completed a Series B round in November, we do not have any seed rounds planned in 2024.
We have an excellent, blue-chip investor base – including esteemed names such as Global Ventures, Energy Capital Group, and Endeavor Catalyst Fund - which positions us well for future funding rounds.
What are the promising investment opportunities in the energy spare parts market in the Gulf region, especially in the Saudi market?
The Gulf region, particularly Saudi Arabia, presents substantial opportunities in the energy spare parts market, driven by an increasing focus on sustainability and efficiency. With the global market valued at >$91 billion and the Middle East comprising 35%, the potential is significant.
Our digital warehousing and additive manufacturing solutions will capitalize on growing demand, offering innovative and efficient production methods. Partnerships with Saudi entities such as NIDLIP and KACST are also enhancing our local presence and capabilities.
Localizing spare parts production not only meets the region's specific needs but boosts the local economy too, making the market attractive to investors.
What are the company’s future plans and expected investments in Saudi Arabia and the Gulf region?
Our regional expansion will continue – including further investment in the Kingdom of Saudi Arabia, the UAE, Kuwait, Oman, Bahrain, Qatar, and other international markets.
In Saudi Arabia, we have signed recent MOUs with NIDLIP and KACST, aligning with our strategy to establish state-of-the-art additive manufacturing centers.
Our future plans include expanding our capabilities, opening additional facilities, advancing R&D, and striking strategic alliances to enhance our service offerings and market reach. We are committed to strengthening the local manufacturing sector, supporting the Kingdom's Vision 2030 objectives, and meeting the growing demand for efficient and cost-effective spare parts solutions.
Does Immensa plan to enter new markets outside the region?
While our primary focus is expanding in MENA, Immensa is currently serving a number of international organizations and thus is actively exploring opportunities to expand its presence in new international markets.
Our scalable technology and expertise position us ideally to meet global energy sector demand. Strategic collaborations - such as our recent partnership with Pelagus 3D for the maritime and offshore industry - show our ambition to diversify and extend the reach of our digital manufacturing and inventory solutions to other sectors and regions.
In your opinion, what are the challenges facing the Gulf energy spare parts market?
The market has several challenges. Legacy systems struggle to meet the sector's dynamic needs efficiently. An over-reliance on outdated supply chain models leaves some companies susceptible to disruptions; high inventory costs; an over-dependence on imports; and long lead times in parts procurement.
The market has been slow to adopt digital and additive manufacturing technologies, but we are now at an exciting tipping point as companies realize how they can optimize supply chains and reduce operational inefficiencies.
But to do this requires innovative solutions, such as our digital warehousing and on-demand production capabilities. We can ensure rapid delivery of high-quality spare parts, boost localized manufacturing, and reduce reliance on external suppliers – thus enhancing the resilience and efficiency of the overall supply chain.
The eco-system to support a digital supply chain and additive manufacturing was non-existent until recently, and that has been one of the top challenges in the adoption by companies. Today, although still nascent, we are seeing the clusters and eco-systems quickly develop as demand for localization and on-demand manufacturing rapidly increases.
How will the digitization of warehouses and flexible supply chains contribute to supporting Gulf companies?
Digitizing warehouses and implementing flexible supply chains has various upsides for Gulf companies: reduced lead times, lower inventory costs, and enhanced supply chain security.
Immensa’s virtual warehousing model allows real-time inventory management – allowing hugely reduced storage costs and minimizing the risk of part obsolescence. On-demand production minimizes the need for large physical inventories, freeing up capital and making essential parts immediately available.
Overall operational efficiency increases, so companies can be more rapidly responsive. More localized production contributes to local economies too – aligning with national strategies for technology advancement and sustainability.
By revolutionizing spare parts supply chains, we empower Gulf companies to operate more efficiently and cost-effectively, driving competitiveness in the energy sector.
