The Anup Engineering Ltd - Can it scale up?

More potential for Anup in green hydrogen space

Technimont a client of the company


execution of capex is very slow. They have strong orderbook but delay in execution due to capacity issue. kheda plant will be operational by H2FY23 only as per investor presentation
fbd10ed0-4283-42ab-aedb-18f8e4918494.pdf (443.7 KB)


Guess you’ve attached India Bulls Real Estate Release

Hopefully movement in this space translates into orders for Anup, both Air Products and IOC being clients…



Anup engineering - concall -july 2021

1…Order book
=Since the 1st of April since the year opened, we have gone ahead and booked almost about 150 crores already. So, which is you can say one of the best run rate that we have had in terms of order booking.

=We are pretty much on track with the initial indications that we had given the expectations about booking orders to the tune of about 330cr

2…Clean room capex-Odhav

=We are certain that we will be able to complete the project in the month of September anywhere between 15th to 30th of September

= In the initial H2 we are likely to commission this by the end of H1 and H2 you will not see any impact there.
But yes, the following half that is the first half of next financial year, there’ll be an impact on revenue because we’ll be booking the orders at that time.

=In the second half maybe, we will be
utilizing the clean room as any other bay to begin with. So, we are not going to wait for the exotic metal orders but those orders will materialize in the second half of this financial year. So,
they will be executed in the first half of next year

3…kheda plant

=We intend to begin the first phase of construction in this quarter, in the current quarter in Q2.

= We are in the process of renewing our contracts and we plan to begin the construction at this time
without wasting any further days.

=Kheda, we are targeting Kheda to be the best fabrication facility as far as India is concerned.

=That’s how the aim that we have taken and it is definitely going to be equate with the best of equipment, best of planted machinery, best of way outs. To that extent I think definitely Kheda is going to be a benchmark in itself

=Ticket size of orders would also increase once the Kheda capacity is on scene


A=Oil and gas(68%)

=The primarily the orderbook continues to be from our
conventional sectors which is refining downstream, oil and gas. But that’s maybe to the extent of about 68%.

B=Other sectors(32%)

=However, some very good progress we have been able to make, significant progress in other sectors, for example chemicals then we have been able to make good progress in power sector

=So the chemical sector contributes about 12% .Chemical sector is one of the sectors where we making inroads.

=Currently since we being more into heat exchanger right now is into more of refining but if you see, if we get
along our clean room from next quarter onwards, we will be more going sector having strigent corrosive application which consumes this exotic metallurgy.

=And also, we are looking at the product mix coming in from paper and pulp business which is also one big segment which we
are already present into, which we expand going forward.

=Also, then there are newer segments which will come up like Gas and everything which we are pursuing.

=The power sector is about 2%. Though it’s not really a very high proportion as of now but it’s a new
business stream, it’s a new revenue stream that has been opened up. We made some good breakthroughs with some of the global leaders in the sector.

=Of course, fertilizer will continue to
provide us with more opportunities, so happy to stay there that slowly we are making progress in other sectors other than the conventional refining sector.

=So almost about 32% is coming now
from non-refinery sectors. So that’s a great sign for us. And the momentum of the inquiries is I do not see any let-up in that. In fact, we are getting better choices because as we are going forward, we are improving our product mix.

=We are getting better approvals. We are getting our track record is becoming better than before and it is opening up doors for us on new product mix, new product categories, new customers. It’s pretty kind of expected market for us is going
to be quite positive in the future.

Q=Little disappointing that your orders are still just concentrated more than
two-thirds in Refining and Oil & Gas.

Ans=Absolutely agree with you. That’s something which has been driving us as well to venture out
into newer sectors and yes chemical sector does present a great opportunity to us and we are
gearing up to capture that opportunity. This clean room is going to be one of the factors we had more specifically


=There could be a hit of a couple of percentage points instead of 25%-26% that we have been consistently showing on EBITDA, maybe it could
come down to what 23%-24% but that’s about it and we are confident of sustaining this.

=We are looking at the margins between 24% to 26% going forward

6…Replacement market

=The equipment which
are only installed there, they would need periodic replacements. So definitely shut down and
replacement is a major business segment for us.

=So our target customers would not just be the ones who are looking for a new expansion or new CAPEX but will also be existing plants where they need to enhance their efficiencies

7… Target of 1000 cr rev by 2025

=We had been talking about the key driver for this towards this target are going to be, the CAPEX that we are doing, the market expansion that we are doing, the technological
collaborations that we’re doing

=Kheda is one of the biggest building blocks for achieving
this number. That’s also one of the reasons why we would like to accelerate Kheda, especially
the first phase we want to really accelerate and get closer to our target as early as possible. We
are still expecting that in about FY25 is the target that we are taken for achieving our 1000 crores

=So, primarily what we have two units in our plan to achieve the 1000 crores revenue target.

A…Out of which 500 to 600 crores is going to be contributed by Odhav which is where we currently
operate from and which is currently actually the only functional facilities that we have. This contribution has come from Odhav

=Odhav should be delivering about the (+500) crores of revenue by FY24.

B…and the remaining is going to come from Kheda and that is
going to be divided into three phases.

=First phase as I mentioned is likely to begin by the end of this quarter and it should take about 6 to 7 months to be commissioned. That will add maybe
about 100-150 crores of revenue to the top line in the following period.

=Similarly, it is going to
be followed by two more phases of construction in Kheda.

=The completion of Kheda, the three
phases is going to happen one phase each year. The next phase is going to be planned in the next year and followed by the end of third year, the third phase.


Total number of customers maybe it will be close to about 70-75

=New customer addition has been muted in the last 12 to 16 months only because of COVID

9…Product mix

=Odhav facility we will continue to have similar kind of product mix between heat exchangers and other pressure vessels.

= But considering that our Kheda facility is going to be a
built heavy bay. We will be able to produce vessels, heavy vessels as well as long towers and reactors.

=So, per say with Kheda coming in on board, we will have this is this more balanced since Odhav is more suitable for us to produce more heat exchanger and that’s how we are chasing our order book

10…Technological upgradation

= As far as technological upgradation is concerned, we are continuing to have already two technical collaborations and we are continuing to pursue further to build up a more niche in our market offering


My latest portfoloio

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Anup engineering -concall-may 2022

1…Flattish growth

=The revenue was impacted due to multiple challenges at the supply chain both at the vendor as well as our customer sides including due to COVID delays, however, we were able to continue and maintain healthy EBITDA margin of 24.3%.

=I think the impact we had on our operations in last year quarter 1 and because of the shortage
of manpower and that really hit us quite badly. In H2, we had organized ourselves better, but then that impact which was there of wave to was actually there, a lot of sites of our project sites where our equipment were headed to, they had got delayed and also another thing that happened
was lot of our suppliers, they were not able to deal with that kind of a situation and that impact kind of really disrupted the flow of materials as required. So, I think primarily these are the reasons which really are responsible for a flattish kind of a growth.

2… Order book

=I am pleased to inform you that we have an all-time high opening order book of approximately Rs. 400 crores.

=We are looking at something like a growth of about 25% in this year in order booking, 25% to 30%,

3…Odhav capex

=On the CAPEX front, the CAPEX for the development of the clean room at Odhav will be completed in May. It is almost already complete and the bay is commissioned already.

=The clear room facility powers Anup into the elite group of global fabricators having the necessary
infrastructure for fabricating exotic materials like titanium and tantalum.

=It will open the doors for the new product as well as new market segments.

=The Odhav CAPEX has just got completed, it will be close to around Rs. 15 to Rs. 18 crores

=The clean room technology, the whole development of this bay and this facility is to get into higher order or higher kind of segment.

=All the CAPEX that Odhav is now complete and we can increase the turnover from this
facility itself to about Rs. 600 crores, between Rs. 500 to Rs. 600 crores.

Q=you mentioned that once this Odhav CAPEX starts, we will be
having much larger product basket, so it will be like different kind of heat exchangers we will be making or any new product will be doing?

Ans=Primarily, the product mix is going to continue to remain as Shell & Tube Heat Exchanger, may
be more of advanced designs like the Helical Heat Exchanger and EMBaffle kind of heat exchangers that we have in our portfolio.

Q=And that will go in any other industry or it will be more or less similar like refinery petrochemical
and all?

Ans=Definitely, they are going to find use across industry segments.

4…Kheda plant capex

=The total CAPEX of Kheda, all phases put together is close to around Rs. 275 crores. In the first phase, which we have already started, we will be incurring Rs. 120 crores.

= As far as Kheda is concerned, the phase 1 construction work in Kheda is also going on in full swing and is all tracked for commissioning
in H2 FY23, sometime towards the end of quarter 3 and beginning of quarter4

5 …Order execution cycle
=Order cycle continue to be in the region of about anywhere between 9 months to 12 months in most cases.

6…Ebita margin

=As far as the margins are concerned, it will be, as you know that the costs have risen very sharply in the recent months, so although we have increased our sales prices and also hedged majority of our inputs which will help us to improve our absolute EBITDA on an yearly basis,

=However, the percentage margin will definitely see a decline and at this moment it will be difficult to forecast
how much percentage margin at this juncture due to very sharp volatility which continues to prevail in the input cost.

=I think that may be it would be fair to assume that anywhere between 3% to 4% will be an impact on margin


= We are looking to grow by around 30% in the next year

= Whole CAPEX has been designed to power our growth at about 30% a year, FY23 onwards.

Q=In last June you guys are bullish on this growth side that we have very
good order book and all this stuff, right, in your last concall, but we have not seen any growth

Ans=So, last, 2 years we have had a kind of difficult years because of COVID , it has been actually flattish kind of a transition
into FY22 and the main reason for this is like I have mentioned earlier in the call, the impact on the supply chain that was something which was quite underestimated by us when we talked about in the last concall and also the impact of this on the customer side, the delays that happened at
the customer side, the project sides which were not ready to accept the equipment’s. So, I think
those kind of delays were not really expected and not estimated.

=The other thing is you were to
look at which is different in this year, how it makes it different is that never before have we opened the order book at this number at such a high order book. Last year, I think it was
somewhere about Rs. 256 crores, this year we have opened that something like around Rs. 400 crores and subsequently also we have booked of orders and that the order flows looks to continue going forward as well.

=So, that gives us the full order to plan our kind of equipment, be
engineering, procurement and ensure that the material and all, whatever inputs are required for fabrication of our equipment are all available on time

8…Target to achieve Rs. 1,000 revenue by 2025

= I think this is deferred by another 2 years because we lost a couple of years due to the COVID impact was quite substantial for our industry.


=There is diversification is definitely very much high on our agenda and if we were to look at the current order mix also, the proportion is growing in the petrochemicals, we have in the
past years also already made the breakthroughs in the power segment and we are continuing to
do so in the current year as well. Even precision equipment the likes which are required for nuclear, aerospace and defense is something that is going to come up as Kheda, towards the
completion of the third phase of Kheda.

10 …View on fear of slowdown

A=Currently I think the refining capacities and petrochemical
capacities in India, they are likely to continue to have the CAPEX in the next may be 3 to 5 years, that is likely to continue

B=However, we are looking to now focus on the global market as
such and start growing our exports.

=I think that is one area where we have taken where the focus
is going on and the areas like, we have already made beginnings in projects of their blue hydrogen projects for certain, in fact the first project of its kind, we are getting into chemicals,
we are getting into different sectors like fertilizers, gases, geopower, green hydrogen, green ammonia, so these are the areas where we are going to diversify and there are definitely
opportunities available to us at the global level more certainly

= I would place the main reason for that is that we are into the high-end engineering kind of equipment. These equipment’s are key to our plant’s operation. So, I think these equipment
are definitely something which where we are not seeing any kind of a decline there.


Q=Since the transportation cost of
our capital goods equipment’s plays a very important role since they are bulky, so how does the
competitiveness get affected if at all it gets impacted when we are transporting or making it for
a client who is based out of India?

Ans=We have exported in the past as well to all parts of the globe including the United States and Canada and South America.

=Apparently, what is happening is that these kind of engineered equipment’s, the capabilities to engineer, the capabilities to design are our strengths here in India and also the manufacturing, the whole manufacturing technology for these kind of engineered equipment is our strength and that is the reason why we are seeing that the kind ofcapabilities
that we have

= Those companies are in the developed part of the world where either they have already shut shop because they are not able to compete this being a very material and labor intensive kind of work. Engineering efforts are so intense in this that in fact most of these companies they have their procurement and engineering centers located here in India.


=If you look at the kind of peers who have approved for these kind of products that we are making,
you can count them on your fingertips

=It is a very small field, these are highly critical, highly complex and the degree of engineering which goes into these equipment is quite high, so we
have very few competitiors there and I think that is the competitive landscape is very favorable for us.

13…Specialty/proprietary equipment

=In the order book, it is to be tune of may be to the extent of about 45%.

= As far as the revenue mix is concerned, maybe we will have to find that data, it could have been to the tune of about 15% to 20%.

=These are advanced designs of heat exchangers, I have already named the helical and there are several other designs like this, so I would refrain from naming the other designs.

=These equipment give a clear advantage to the user in terms
of efficiencies and in terms of savings, so that is the reason why people are now, most users are now switching over to these advanced designs.

=I think the demand for that product is increasing. One thing is that the kind of experience that we had in this kind of advanced designs for the last 20 years and the second thing is that
more users are becoming aware about it. So, they are referring to go in for these designs rather than going for a standard kind of heat exchanger.


My latest portfolio


Big potential opportunity for Anup heat exchangers in the green hydrogen theme.

This snippet from the latest Niti Aayog Green Hydrogen report:


Few points from rating@ july 2022

Anup eng care rating update ,july 2022

1…Anup’s technical expertise and specialized products like ‘Helixchanger’ and ‘Embaffle Heat Exchangers’ (Anup is the first Indian company to fabricate ‘Embaffle Heat Exchangers’) which
offer significant benefits over conventional heat exchangers are expected to support its profitability.

2…Anup’s unexecuted order-book stood at ₹393 crore as on March 31, 2022 (₹256 crore as on
March 31, 2021) which further increased in Q1FY23 post receipt of large order of nearly ₹100 crore from oil refinery company providing revenue visibility of nearly 2 years

3…Kheda capex
=Phase-I (two bays) of the project is expected to be commissioned in January 2023.

=As informed by the management, Anup may plan phase-II of the project after stabilization of the phase-I. Phase-II and phase-III of
the project are expected to entail aggregate capex of nearly ₹150 crore. Increa


want to understand what is ‘Excess Provision for earlier year’ under Income Tax. ( screen shot attached)

Company making Excess Provision for earlier year in FY 21 and FY 22 so that tax rate for FY 22 is -2%. does it to increase EPS?

as this is core accounting practice, request members to explain it to non accounting persons like me.

Sir I think they have ventured to Building own power plant and defaulted loan up to 92 Cr.

They have also started EPC devision which have very less margin compared to equipment manufacturing.

It seems Mr.C.E. Fernandes did serious capital misallocation by venturing in to Power and EPC segments and went bankrupt.

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Sir they are not doing any innovation or development they are partnering with innovator and technology provider. So Anup is pure play FABRICATOR company as of now and I think thats why it trades at such PE. (I was biased like you earlier but now I think it is Fabricator and doing shaping and welding work for others.)

Not invested. Tracking.

If Anup has commodity type fabricator business then why company has

A…25% operating margin

B…Roe@18-20% after adjustment of ICD and goodwill.


MOATS(Anup engineering)

A…Less competition

=If you look at the kind of peers who have approved for these kind of products that we are making,
you can count them on your fingertips

=It is a very small field, these are highly critical, highly complex and the degree of engineering which goes into these equipment is quite high, so we
have very few competitiors there and I think that is the competitive landscape is very favorable for us.


=The company has technical collaboration with Lummus Technology for special High Efficiency Heat Exchangers (Helixchanger).

=The company has adopted a technology to fabricate and
supply Helical Baffle Heat Exchanger for global markets.

=The company has signed a technology partnership who are
the inventors and leaders in Embaffle Heat Exchangerstechnology.

=This technology had made us the only fabricatorin India, with such capability.

C…Entry barrier

====Why big companies not enter
=The smaller average order size of ~Rs. 2.5 Cr discourages expansion of larger capital goods companies into the process plant equipment market.

=====Why clients prefer anup than smaller companies

1…Liscence n certificates

=It takes small new companies 10 to 15 yrs for liscence as it is critical product

2…Customised tailoring and complexity

=All process equipment is specifically tailored asper clients’ specifications requiring high levels of customization which prompts larger clients to opt for established suppliers who meet the complexity and quality standards.

3…Criticality of product.

=Heat exchanger plays a critical role in
large scale industries like oil & gas refining, petrochemicals and fertilize
Clients prefer reliable suppliers with a proven track record of quality and timely delivery thus benefiting larger players viz.ISGEC, Godrej, L&T, BHEL, TEMA and Anup.

4…Repeat orders

=Sticking to deadlines ,timely delivery and avoided paying liquidated damages - Gained confidence of customers leading to repeat buys

=Liquidated damages are one of the biggest cost in this industry

D=Low cost production
= Due to cheaper manpower in India

F=Complex products

…Increasing complexity and weight of the product manufactured: Over the years, the company has increased realization of the equipment manufactured by it

…After kheda plant completion ,large complex products will contribute good portion of revenue



Anup eng concall aug 2022

1…Technological tie up
=We are in advanced stages of discussions for our technological tie up for more complex and advanced designs equipment and we will be sharing the details with
you once the collaboration, the agreements has been inked.



=We were able to make significant progress by achieving some important milestones including the new urban bay with lifting capacity 150 metric tons along with clean room facility which will allow us to tap the exotic materials segment and upgradation of existing bays.

=This facility is as think is capable of delivering anywhere about Rs. 500-Rs. because we have completed the CAPEX here in Odhav with the commissioning of clean room it is done now, so this is capable of delivering up to Rs. 550 crores and we are like said we are looking to set to grow at a CAGR of 25% here on.


=We were also able to speed up the progress of construction in our new facility at Kheda which will be as the
cornerstone for future growth.

=Kheda plant once it comes on stream it is going to be done in three phases, the first phase we are likely to complete in this current financial year or sometimes in the beginning of Q4 is where the likely to have this plant closer to completion and
commissioning. This is going to add about Rs. 100-Rs. 150 crores to the revenue

=Then we are talking about going ahead the next two phases once when we are all completed we will have
almost Rs. 500 crores coming from Kheda

=At kheda plant, the total CAPEX is Rs115 crores and Rs.30 odd crores have been spent already in last year and the current year we have spent around Rs. 25 odd crores, Rs. 60 crores more to go in next 6 to 9

=If we commission the Kheda plany by the turn of the financial year, by 31st of March, we should be ready for taking orders from there in the middle of the next year. Maybe, somewhere in the Q2 we will have the orders specifically for Kheda


=As far as the low revenue in Q1 is concerned I think this is mainly
the result of selected revenue mix that we have with the most of the deliveries which are related to happen in the subsequent quarters.

=That means, now onwards. Q2 onwards will be the most
of the deliveries of our revenue mix that we have selected for the year

=This is the deliverable cycle from the client end or mapped in such a way
that the scheduled deliveries are post-June, so that is the reason that is built-up in inventory and
the working capital progress

=This is the bottom in terms of execution cycle and now it is only the upward graph that you
are expecting from this quarter.


Revenue guidance of about Rs. 382 - Rs. 400 crores for FY23.

= Margin
As far as the margins are concerned, yes it is an impact of affiliations in the
material prices and that impact will continue to be there with us, however we’re confident that we will be closing the year with about 4 or 5% hit on the EBITDA margin at about 20%.

5…Specialised heat exchanger

= I would be happy to share with you that from the current order book almost about 60% would be contributed by these special designed
heat exchangers

6…Why 80% order book for heat exchangers?

=It’s a reflection of the fact that
currently the entire revenue is contributed by Odhav where we are going forward we are going to focus on heat exchangers, shell and heat exchangers and exotic equipment. So, that is the product mix that we foresee for the Odhav plant, for non-heat exchangers the process equipment
that is following the non-heat exchangers category that is columns, reactors and pressure vessels

=I think that is where we had envisaged Kheda to come in and allow us that kind of bandwidth to
deliver the best of equipment and the most credible, and most complex of those equipments in these categories

7…Why export only 10%

=It is purely a reflection of the available opportunities.

=. It’s a lot of action happening here in india with so much of investment happening in the refinery
sector, petrochemicals and chemicals. So, it is pure clear reflection of that

8…Growth rate

=We are looking growth rate, both put together at CAGR of 25% from here on, both (odhav+kheda) facilities put together.

9 …Margin

Q=with Kheda coming, where more complex and high ton range of products would be manufactured. Wouldn’t it have margins higher than your normal margins of 24, 25%
because the competition level would be less and those would be more complex products.

Ans=I think that is what we are heading towards. And that’s the whole idea as you will see we have
made rapid progress in terms of the kind of equipment that we have been delivering and every year we have seen an improvement there.

=Of course, that is something which doesn’t get reflected in the numbers that generally analysts analyze. But it is definitely something which has been very consciously being pursued by us and we have been largely successful in that. In the coming years and when Kheda is on stream definitely it will be reflected in the bottom line as well


=We are amongst top four leading
competitors in India.

=Our major competitors would be
heavy engineering division of Larsen and Toubro and izec.

11…Capacity utilization would be to the tune of about 80%.

12…Update on fermentors and bioreactors

= I can only say that the work is in progress and I mean, that’s a big, it is very high on our agenda and it’s in fact increasing the customer portfolio and also the product portfolio is something, these have been designated as key drivers of growth for us. It’s something which is very high on my agenda its work is in progress.

13…On time delivery

=We have the best track record when it comes to on-time deliveries and we
maintain our leadership position for the last six or seven years consistently. And we retain that position. We are delivering upwards of 90% on time or before time



Hello, what is the mode of fund for kheda capex. last year spent was from internal accruals. What about the rest money? will it be through internal accruals or debt or equity dilution?

Mostly internal accruals, little debt be taken to keep bankers interested and benefit of rates. This apart from the regular working capital requirements. Khedha land has already been bought and is 3-4x the size of Odhav.

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I was studying the company. Here I have some questions.
How is the valuation as of now?

  1. The numbers are more or less same on ebitda, pbt level since 2019. FY23 Revenue will jump to 400 cr due to Odhav clean room coming in and orders on hand. But EBITDA PBT will be same due to margin contraction. But valuation wise (PE, EV/EBITDA, mcap/sales) the co is at twice the level of 2019. Don’t you think the revenue of 500 cr for FY24 is fully priced in? Lets exclude kheda capex as of now because it has been delayed for long time, so let’s keep it as an optionality.

  2. Why should be the base (like what is in future) for someone pay the high valuation? What is the future revenue potential (let’s ignore mgmt guidance bcz I have doubt on their promises)

  3. Is the main trigger for future growth is the Kheda capex because now it seems like to be completed by H2FY23?

Disclosure: Studying



OPERATING MARGINS: The bulk of the order booking that was done for this year was in the second half of last year and what happened is that, most of these orders were taken at the peak of the sort of raw material spike where we had very little time between actually bidding for the orders and actually the spike happening after winning the orders. So, the raw material pressure is likely to continue till the end of Q4. So, the margins should remain around what we see them in Q2 for the rest of the year. However, the good news is that going forward all the orders that we booked post a spike that form a big chunk of this 536 crores order book, they have started returning to the old levels of margins. So, we should likely see good margins return in the first quarter of the next year.

GROWTH TARGET: We expect that we should be able to grow at a CAGR of over 25% for the next 3 years with 24% margins.

KHEDA FACILITY: Kheda Phase-1 likely to get commissioned by Q4 FY23 end. Civil & Fabrication to be completed by Q3 end. The complete first phase will be operational which includes one full bay and half a bay. The full bay is used for the assembly and the cutting and bending will happen in the half bay. We can put a total of seven such bays in 3 phases.

Only towards Quarter 3. Quarter 4 will we start seeing good levels of utilization because we’ll have to get the qualifications, we’ll have to get the customers in, we’ll have to sort of get all the approvals in place for various different types of equipment. So, that all will take some time. Next year towards the end of the year is when Kheda will start delivering on its full capacity.

VISION OF NEW CEO FOR THE COMPANY: We need to diversify in different geography and product categories. Mainly I talk about exotic metallurgy, so it will give a higher value equipment product mix for us. Second is acquiring technology of proprietary products. Third, expanding the capacities and capabilities. So, Kheda is a clear example of how we are going to increase our capacity and capability because of the sheer size of that facility. As you all know it’s under the hook, 17 meters, which gives us a huge leeway in terms of getting more into heavier, complex and larger diameter equipment.

More moving towards higher in the value chain, both in terms of thicknesses and also in terms of exotic metallurgy:
The first and foremost in the existing product category that we have, the first priority would be to move up the value chain in terms of higher thicknesses. With the new facility of Kheda as I said it leaves us a good leeway in terms of making higher thicknesses than what we are doing today and also larger diameters and the ODC consignment
Second, we have the clean room order facility in the Odhav facility that we are doing now. We are focused on building a pool of order for exotic metallurgy, namely titanium and others where we could increase the share of exotic metallurgies thereby giving us larger top line and as well as a higher value per equipment.
Also, we are looking at some equipments that we could make for hydrogen which is the future going forward.

EXPORTS: Exports at 20% for hy22. Export share in revenue mix has Started to increase, according to management goal of 50-50% revenue mix of domestic-export. The company also added new customers from South America, Europe & Middle East.

Number two the Odhav facility is constrained from its location perspective also. It’s landlocked and the space is very limited so a lot of the export customers that require large equipment etc. would not even consider this manufacturing location. So, we’ve not gone to that set of customers also which we know that if they come and see the facility, they will have the first question around logistics and that will be the, before they even look at our systems, processes and shop floor, it would become a constraint. So, these are the issues of why we have focused on this set of customers which itself is giving us good bottom line. I think the right question to ask is what will happen after Kheda and there I can assure you that any export customer will love the infrastructure that we are putting in place. It’s probably, it’s going to be a best-in-class kind of infrastructure.

We are qualified for a lot of export customers and those customers can start utilizing the Kheda facility.

One of the things where we are very well placed is that Regi has relationships with the best of all customers globally and they are eager to be able to come into India and have a new supplier because today there are only two or three people who can service their needs and the shift away from some of the South East Asian and Chinese supply chains is only going to add to that necessity of looking for more options in India.

HIGHER AVERAGE EQUIPMENT VALUE: Capacity is a moving target because average equipment value is also changing all the time. So, the same number of equipment can deliver a higher turnover, if your average equipment value goes up. It’s been constantly going up every year. We are close to full right now. But we will continue to remain close to full with the higher turnover because our average equipment value is going up. What, the way you have to think about it is that our average equipment value 2 years ago was I think in the 1 crores range. Now it is 2.7 crores on this order book.

PRODUCT MIX TARGETS: The Kheda Facility, because of the sheer size, reactors and pressure vessels would be planned for Kheda. As you would have seen from the product mix that we had historically, close to about 75% around we were always on the heat exchanger side and the balance would add up to about 20%-25%. Going forward with Kheda in place that’s the change that we want to bring about. We want to keep exchangers to about 60% and the balance is where we want to increase it, so that we do due justice the capabilities that we’ve built up at Kheda locations.

• Order Inflow for the year: We have booked close to around 300 crores in H1. We are seeing a similar traction for H2.

• I think three strengths we’ve historically had as Anup. I think our competitiveness, our on-time delivery and our quality. We’ve hardly had a quality complaint for the last 5 years. I don’t think we’ve ever missed a customer CDD. I think preserving this is going to be key to looking to the future

• Getting into proprietary equipment there are several conversations happening which of course we will inform you as they become more concrete.