Ion exchange update
(From credit rating 2023 and investor presentation)
ION EXCHANGE
FUTURE GROWTH
1…Order book
=The engineering segment had orders worth Rs 3,351 crore as on June 30, 2023, with strong bid pipeline of ~Rs 8,500 crore offers strong revenue visibility
2…Recent acquisition
=Recent acquisition of a Portugal based company MAPRIL (acquisition completed in Q1FY2024 at a total consideration of ~Rs 24 crore, funded from internal accruals), will provide better access to the European market and increase the product offerings in chemical division.
3…Greenfield expansion
=Greenfield expansion in the chemical division for Resins manufacturing in Roha, Maharashtra with an estimated capex outlay of ~Rs 400 crore (to be funded in the debt equity ratio of 4:1), to be phased out in fiscal 2024 and fiscal 2025, the debt tie-up is already in place.
=The company’s ability to commission the Roha project within the budgeted cost and estimated timeframe, stabilize the facilities and ramp up sales post commissioning would be a key monitorable.
4…Market potential
A…Sewage(Municipality)
= Study by the Central Pollution Control Board (CPCB) has revealed that almost72,368 MLD of sewage is generated across urban India and there are just 1,093 STPs installed that treat 31,841 MLD or 44% of sewage per day
B…Industrial
=• In India only 60% of industrial
wastewater is treated.
• Around 40% of the STPs do not conform to the environment protection
C…Nal se jal
=Following the announcement of the
‘Har Ghar Nal se Jal’ scheme on August 15, 2019, it has provided tap water
supply to more than 12 crore rural
households.
= At the time of announcement of the Mission, out of 19.27 crore households in the country
only 3.23 crore (17%) had tap water
connections.
D…SWACHH BHARAT ABHIYAN
=Namami Gange” the clean Ganga
initiative, can create significant
opportunities.
=INR 200 bn (USD 3 bn) has been pledged by the government over the next five yearsto clean up the Ganga.
5…After sale services
=Longstanding presence of the promoters and a robust nationwide aftersales service have helped the group to establish the brand.
Disc…invested since 2020
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