surya roshni ltd Management discussions

Company Review

Surya Roshni stands tall as a major player in the Indian business landscape, scaling greater heights with its strategic decisions. Having been founded in 1973, the Company has come a long way to emerge as an entity with a remarkable turnover of around USD 1 billion. The driving force behind its momentous success is the exceptional leadership of Mr. J. P. Agarwal, whose vision and strategic direction have enabled the Company to establish a leading position in both its core business segments: Steel Pipes & Strips and Lighting & Consumer Durables. Along its journey, Surya Roshnis success has stood as a testament to its unwavering commitment to excellence, innovation, and customer satisfaction. Surya Roshni started its journey with manufacturing steel pipes in Bahadurgarh, Haryana. Over the years, the Company diversified its product portfolio to expand further. It ventured into lighting industry in 1985 and established facilities in Kashipur, Uttarakhand. The Company continued on the path of expansion and added PVC pipes to its portfolio in the year 2010. In 2014-15, it ventured into the production of consumer durables, including fans and home appliances. The Companys brands, ‘Surya and ‘Prakash Surya, have become household names in India, along with 50 other countries, owing to their exceptional quality and reliability.

Surya Roshni specialises in manufacturing a diverse array of products in the Steel Pipes & Strips category. These products cater to multiple industries such as agriculture, infrastructure, oil & gas, water, and construction. The Companys comprehensive range of o_erings makes them a reliable and preferred choice among customers from these industries. The Company continues to hold a leadership position in this sector, being the largest manufacturer of Galvanised Iron (GI) pipes and the largest exporter of Electric Resistance Welded (ERW) pipes in India. Its o_erings for the oil & gas sector are approved by the American Petroleum Institute (API). The Company stands to benefit from the evolving opportunities across its end-user segments in India and globally. The 3LPE coating line is set to further bolster its capabilities in the oil & gas and city gas distribution sector. Surya Roshnis lighting and consumer durables segment consists of a broad portfolio of products that cater to a wide range of customer needs. The Company o_ers an extensive array of products, ranging from traditional lighting solutions to cutting-edge professional lighting systems. Its product portfolio includes light-emitting diode (LED) lamps, LED battens, LED Down-lighters, LED street lights, fluorescent tube lights (FTL), general lighting service (GLS) lamps, and high-intensity discharge (HID) lamps, among others. The Companys vision of ‘Lighting Every City Every Home has been its growth driver. With its comprehensive lighting solutions, it has emerged as the second-largest lighting company in India. Surya Roshnis R&D facility in Noida is dedicated to driving innovation in the LED segment. Through its pursuit for excellence, The Company has gained widespread acceptance among the masses, making it a leader in the industrys transition from conventional lights to LED solutions. The Companys consumer durable business o_ers a variety of fans and home appliances, including mixer grinders, induction cooktops, toasters, irons, water heaters, and air coolers, among others. This segment is steadily expanding its presence in the Fast Moving Electrical Goods (FMEG) space.

Surya Roshnis strong dealer and distribution network has enabled the Company to reach customers across the country, particularly in Tier-II, Tier-III cities, and rural areas. It has consistently generated value for its stakeholders through its strong brand equity, robust quality, continuous innovations, sound financials, seamless operational e_ciency, and prudent management.

Industry Structure and Developments

Indian economy has made significant progress in recovering from the Covid-19 pandemic. Private consumption has been a key driver of this growth. Consumer sentiment has improved with the easing of restrictions and the deployment of vaccines. It led to a spur in spending on contact-based services, which were hit hard by the pandemic. Governments e_orts to vaccinate the population have paid o_, with near-universal vaccination coverage contributing to the resilience of the economy.

On the other hand, Indian economy is also negotiating a significant challenge in terms of inflation. The Russia-Ukraine conflict aggravated the inflationary pressures, making it di_cult for the Government and RBI to rein in prices. While global commodity prices have eased, it took until November 2022 for retail inflation to fall below the RBIs upper tolerance target. Hence, it is absolutely critical for the Government and RBI to continue to monitor the inflation scenario closely and take appropriate measures, as and when needed. Notwithstanding these headwinds, the optimistic growth forecasts for India for 2022-23 stand at 6.5-7.0%. This is a testament to the resilience of the economy and the Governments e_orts to revive growth. With the continuation of the Governments support through targeted measures, such as providing fiscal boost to sectors that are still struggling. By doing so, India can continue to build on the progress made and return to its pre-pandemic growth trajectory.

With its well-established brand and a versatile range of products, Surya Roshni is strategically positioned to penetrate multiple sectors and markets. This allows the Company to enjoy a significant advantage in terms of its growth potential. Its extensive presence in rural and semi-urban areas allows the Company to reach a wider customer base and expand its market share. Furthermore, with the increasing focus on infrastructure development, particularly in the agriculture, construction, and water sectors, Surya Roshni is well-positioned to leverage these growth opportunities through its steel pipes & strips segment. Additionally, with the rising demand for energy-e_cient lighting solutions, the lighting and consumer durables segment has significant growth potential. This is further aided by the Companys strong focus on research and development in the LED segment. With Surya Roshnis strategic positioning across various sectors, markets, and regions, the Company is poised to scale greater heights with strong growth in the future.

a) Steel Tubes and Pipes

Global Overview

Steel pipes play a crucial role in the transportation of fluids such as water, oil, and gas. These pipes are developed with a focus on factors such as yield strength, ductility, pressure rating, and inside diameter. Steel pipes are extensively used in the downstream, upstream, and midstream processing of crude oil and petroleum. According to industry reports, the global steel pipes and tubes market was valued at USD 160 billion in CY20 and is expected to clock in a CAGR of 3% from 2020 to 2023, with a projected market size of USD 175 billion in CY23. This growth can be attributed to the increasing demand for the transportation of oil and gas, driven by the rise in production of these commodities. Moreover, the growth in industrialisation, urbanisation, and manufacturing sectors, particularly in developing economies, is contributing to the increase in demand for steel pipes.

The steel industry has made significant strides in reducing greenhouse gas emissions, and structural steel has been widely recognised as a leading green construction material. With a focus on sustainability, the structural steel industry has established itself as a key player in the construction industry.

Indian Overview

The steel tubes and pipes industry in India is expected to grow rapidly, driven by high standards set by national and international specifications and widespread application in major industries. The industry is projected to expand by 21% from CY20 to CY30E, mainly due to rising urbanisation, the need for water transportation, various agriculture and irrigation development projects, and the National Jal Jeevan Mission (NJJM) launched by the Ministry of Jal Shakti (MJS). The NJJMs goal is to provide ‘Functional Household Tap Connection (FHTC) to every rural household in India by 2024, leading to a surge in demand for steel tubes and pipes, which are essential in establishing a robust water supply infrastructure across rural India. Therefore, the steel tubes and pipes industry is poised for substantial growth in the years to come, owing to their versatility and widespread use in various sectors.

Global Overview

Water

Indias alarming water scarcity pose a major challenge for the countrys sustainable development. The problem is further highlighted by the fact that only 4% of the worlds freshwater resources are available to sustain 18% of the global population, underscoring the enormity of the issue. The over-dependence on groundwater has led to unsustainable consumption, making India the worlds largest extractor of groundwater. This is a cause for concern as groundwater is a finite resource, and its depletion can lead to serious consequences for the environment and human health. The projected water demand being twice the available supply – as stated by Niti Aayog – is alarming. If not addressed, this can lead to severe water scarcity for millions of people, with an eventual loss in the countrys GDP. The impact of climate change and population growth on Indias water resources is too huge to ignore. The increasing contamination and pollution of major rivers further aggravates the situation.

The lack of access to potable water is a serious health risk for millions of people, especially in rural areas. The Governments e_orts to provide piped water to every household under the ‘Jal Jeevan Mission is a positive step in this direction. Nonetheless, it is of critical importance to prioritise the sustainability of the water supply and avoid further burdening the already over-utilised water resources. With increased focus on water and irrigation segments in the Union Budget 2022-23 and the allocation of _ 862 billion towards the Ministry of Jal Shakti, Indias water scarcity challenge is finally getting addressed. The creation of the

National Interlinking of Rivers Authority (NIRA) is also a crucial development as it will facilitate the planning, investigation, financing, and implementation of river interlinking projects in the country.

The interlinking of rivers through reservoirs and canals can significantly increase the scope and reach of irrigation, imparting a positive impact on agriculture and the rural economy. Nevertheless, it is essential to ensure that such projects are implemented sustainably and do not adversely impact the environment, including the biodiversity of river systems.

Surya Roshni is well-positioned to leverage the opportunities within the water segment. Its existing capacities for GI pipes and a robust presence in the rural regions of India are set to enable the Company chart a strong growth trajectory.

Infrastructure Development

The steel tubes and pipes industry is heavily reliant on infrastructure development as a key growth driver. This is evident from the fact that the construction and building sectors account for around 60% of the end-use steel consumption in the domestic market. With a continued focus on infra projects, there is a sustained long-term growth potential for steel demand. The increased allocations to flagship schemes like ‘Pradhan Mantri Awas Yojana and ‘Jal Jeevan Mission are positive indicators for the long steel and pipe manufacturers, as these projects will increase the demand for steel tubes and pipes.

The proposed investment of _ 75,000 crore for 100 critical transport infrastructure projects, spanning across ports, coal, steel, fertiliser and food grains sectors, will drive the demand. Furthermore, the increased capex for infrastructure development to _ 10 lakh crore in the Budget and a capital outlay made for development/redevelopment/ modernisation of new/old railway stations, fuel the demand for steel tubes and pipes.

The critical infrastructure developments, such as railways and airports, are set to improve regional connectivity and generate employment opportunities, leading to long-term economic growth. Governments determination to promote long-term development through improved infrastructure is expected to drive the growth of the steel tubes and pipes industry in India.

Surya Roshni is well-equipped to meet the increasing demand for steel pipes in the infrastructure industry. Its international-standard pipes, with larger diameter, higher thickness and higher strength, will help the Company flourish with the necessary traction.

Oil & Gas

As the oil & gas industry continues to evolve, steel has become even more e_ective and reliable due to advances in technology and the development of new building materials. In the years to come, steel is likely to become even more pivotal to help the oil sector progress. Many steel pipes are specifically designed for use in the oil & gas industry. Due to their extensive range of benefits, steel pipes play a key role during the transport of hazardous materials, crude oil, and natural gas. The oil & gas downstream market is poised for growth in India as the countrys energy demand is expected to increase by 50% in the next two decades. The demand for petroleum fuels is likely to remain strong, favouring the growth of the oil & gas downstream market. This, in turn, is set to lead higher demand for steel tubes and pipes in the industry.

India currently boasts the worlds fourth-largest refining capacity, with a whopping 250 million metric tonnes (MMT). This capacity is expected to increase to 298 MMT per annum by 2025, thanks to strong investments worth _ 2 trillion (USD 27 billion), planned by Indian state refiners. This investment is expected to drive the demand for steel tubes and pipes in the oil and gas industry, making it a key growth driver for the steel tubes and pipes sector in India.

(Source – Indian firms plan to invest $27 bln to boost refining capacity by 2025 : Reuters)

The drive towards decarbonisation and diversification of the energy mix is critical for India to combat increasing emission risks and address climate change concerns. As part of this initiative, India is aggressively building its gas infrastructure. Natural gas is finding multiple uses in the countrys energy system. The increased use of natural gas is crucial in meeting air quality and near-term emissions goals.

India aims to become a natural gas-driven economy by increasing the share of natural gas in the countrys energy basket from around 6% to 15% by 2030. As of September 2021, the national gas grid had 21,735 km of pipelines, laid out as part of the Gas Grid Expansion initiative. The Government further targets to increase pipeline coverage by around 60% to 34,500 km by 2024-25. By 2027, all states in India are expected to be connected by a trunk national pipeline network.

This growth in the gas infrastructure is expected to have a positive impact on the steel tubes and pipes industry, as these materials are used extensively in the construction of gas pipelines. As India continues its drive towards a natural gas-based economy, the demand for steel tubes and pipes is expected to grow, providing a boost to the sector.

(Source – Oil and Gas Industry in India - Investment Opportunities & FDI (investindia.gov.in))

Surya Roshni, as a dominant player in the steel pipes market, is well-positioned to capitalise on the growing demand for steel pipes in the oil & gas segment. The Company is set to leverage its diverse product o_erings, including API, 3LPE Coated, and Spiral Pipes to cater to this demand.

Furthermore, Surya Roshni has established itself as a premium player in delivering high-quality products to the City Gas Distribution (CGD) sector. Total order book in hand amounted to _ 850 crore (GST included) (API, Exports and Actual Users) for oil and gas sector projects. These pipes are to be laid in four geographical areas in the states of Rajasthan, Bihar, Jharkhand and West Bengal. The order is to be executed within 8.5 months. This presents another opportunity for the Company to leverage its expertise in delivering premium steel pipes to this rapidly growing segment.

Renewable Energy

The solar power industry is leading a surge in demand for steel tubes and pipes with its increasing focus on renewable energy sources. These essential components are critical for the production of solar panels. In addition, steel pipes are used in the transportation of various components of solar panels and also in the manufacturing of the panels support structures.

Steel piping is crucial to connect the solar panels to the electrical grid, wire the solar cells, move the liquid-cooled plumbing systems, and transport thermal water. With each phase of solar power construction relying on the versatility of steel to facilitate e_ective implementation of the job, the demand for steel pipes in the solar power industry is set to rise further.

As more businesses and homeowners shift towards renewable energy sources and the solar power industry continues to boom, steel piping is set to play an increasingly critical role. This creates ample business opportunities for the steel tube and pipe industry to grow and flourish around the globe. The demand for renewable energy sources continues to drive the need for steel pipes in the solar power industry. Surya Roshni caters to the requirements of the solar panel industry with its o_ering of GI pipes that provide structural support as well as fulfill transportation needs.

Automobile

The automobile industry continues to witness growing vehicle registrations driven by a preference for personal mobility and pent-up demand. Even the increasing raw material costs and global semiconductor shortage could not dampen the prospect of the industry. It is also shifting towards the production of electric vehicles in line with global trends. Furthermore, the Indian Government is promoting the production and commercialisation of electric vehicles through initiatives such as FAME II and BS VI norms. In this evolving automotive landscape, Surya Roshni is well-positioned to serve the sectors specific requirements with its narrow range CR sheet o_erings, tailored-made to suit the industrys unique needs. With the popularity of electric vehicles on the rise, the Company may consider exploring potential avenues for expanding its o_erings within this segment.

Growing Organised Players

Customers have shown a preference for the organised sector due to their larger production capacities and stringent quality control measures. These companies have also demonstrated their ability to adjust their production volume in response to changing market demand, as evidenced during the Covid-19 pandemic. The organised sectors growing dominance is expected to be a boon for companies, such as Surya Roshni, as the share of unorganised and smaller players decreases. This shift is likely to improve pricing power and margins, particularly in the ERW segment, which has historically been highly fragmented.

Exports

The steel pipe market is expected to experience a steady growth trajectory globally with market values projected to reach an impressive USD 151,905 million by 2032. The growth drivers include the surge in oil & gas production to meet transportation demands. To tap the opportunities, emerging in the international market, Surya Roshni has established a presence in the Middle East and is expanding into Australia, Singapore, South East Asia, and the UK. The Company is exporting products like GI Pipes and Coated Pipes for use in fire-fighting, water transportation, and seaside pipelines. With the Indian Governments emphasis on promoting domestic manufacturing through strategic initiatives like ‘Make in India and ‘Atmanirbhar Bharat, Surya Roshni is well-positioned to reap the benefit. Surya Roshnis newly-established DFT technology facility in Malanpur puts the Company in a prime position to capitalise on emerging opportunities in the inch-to-inch market for section pipes in the US and Canada.

b) Lighting and Consumer Durables

Lighting

Global Overview

The market for lighting fixtures and luminaires has undergone a significant transformation in recent years, with LED lights replacing incandescent bulbs and CFLs. LED lights are highly energy-e_cient, making them an increasingly popular choice for both residential and commercial use. With a broad range of options available, consumers have a variety of choices to meet their illumination needs. In addition to their energy e_ciency, LED lights are highly durable and long-lasting, available in di_erent wattages, colours, and designs to suit any environment. The general lighting and automotive sectors account for over half of the lighting fixtures produced worldwide, with other sectors such as videowall, consumer, large display backlight, and mobile appliances comprising smaller percentages of production.

LED lights have become one of the most popular lighting technologies worldwide due to their numerous benefits, and their usage is expected to increase further. Industry reports project that LED lighting penetration will reach 87% by 2023, propelled by rising environmental concerns and favourable government initiatives.

Indian Overview

Lighting, also referred to as illumination, is the purposeful arrangement and use of lighting fixtures to achieve both aesthetic and practical e_ects. Lighting solutions are used in various settings such as shopping complexes, rooms, streets, and other locations. Lighting plays a huge role in all industries. The Indian lighting industry reached USD 3.4 billion in 2022. Looking forward, the market is anticipated to reach USD 11.9 billion by 2028, exhibiting a CAGR of 23.38% during 2023-28. The industry is benefitting from the high presence of numerous market players, coupled with the rapid increase in the population in the country. The rise in Government initiatives towards LED lighting and growing constructional industry have fuelled the growth.

(Source – Indian LED Lighting Market Size, Trends and Forecast 2023-28 (imarcgroup.com))

Firstly, the market is driven by the escalating demand for two words lighting solutions in the country. In addition, the growing awareness among individuals regarding the low power consumption and eco-friendly nature of LED lights represents a major growth-inducing factor. LED lights have swiftly gained prominence among consumers owing to their numerous advantages over conventional lighting technology. Secondly, the Government of India is undertaking various initiatives to promote the usage the LED lights. For instance, under the Street Lighting National Program (SLNP), over 2.1 million incandescent and fluorescent streetlights were replaced with LED streetlights across the country. This, coupled with the rising product adoption in the automotive industry to manufacture rear lamps, headlamps, turn signals, and brake lights, is positively influencing the market growth. Rapid urbanisation is creating increased demand for lighting solutions, particularly in commercial and public spaces. In addition, the declining prices of LEDs, coupled with the introduction of cost-e_ective smart LED lighting solutions with improved controls, contribute to the growth of the industry. Finally, upcoming smart building projects are adding to the demand for innovative lighting solutions

Consumer Durables

FANS

The Indian market for fans presents a diverse range of options, including ceiling fans, table fans, stand fans, and wall fans. The Indian ceiling fan market reached 41.2 million units in 2022 and is further expected to reach 47.5 million units by 2028, registering a CAGR of 2.3%. The growth of this market will be driven by the expansion of the residential sector, advancements in the retail, real estate and hospitality sectors, an increase in consumer income and a wider reach of electricity. Furthermore, there is a growing demand for smart fans that provide additional features such as lighting, decorative aesthetics, dust and noise control, and antibacterial properties. This trend caters to both the premium and low-cost consumer segments, is expected to register a further uptick.

(Source – India Ceiling Fan Market Share, Size and Industry Report 2023-28 (imarcgroup.com)

DOMESTIC APPLIANCE

The domestic appliances industry is currently experiencing a significant expansion, attributed to the constantly evolving lifestyles of modern society. Owing to the increase in the number of working couples, single-person households, and a growing migrant population, the demand for domestic appliances has hit an all-time high. The proliferation of new homes and o_ces, combined with the emergence of a hybrid work culture, is driving the demand for these products even further.

PVC PIPES

PVC pipes have emerged as a crucial component in Indias housing, infrastructure, and agricultural sectors. The demand for these versatile pipes is on the rise consistently. The housing sector has been booming, thanks to the Governments tax incentives and the availability of easier financing options for prospective homeowners. Meanwhile, the steadfast commitment of the Government to invest in irrigation, housing, and sanitation has only added fuel to the fire. Schemes like ‘Housing for All, ‘AMRUT, and the ‘Prime Minister Agriculture Irrigation Scheme have created a burgeoning demand for PVC pipes.

The versatility of PVC pipes is one of the primary reasons for their widespread popularity. They have become increasingly popular in plumbing and piping applications due to their ease of transportation and ability to handle hot and cold-water plumbing. Led by the PVC pipes, Indias housing, infrastructure, and agricultural sectors are poised for tremendous exponential growth in recent future.

Opportunities and Growth Drivers

Rapid Urbanisation

Indias economic growth and development are being propelled by the crucial factors like the growing urbanisation and the rise of the middle-income class. With more people moving to urban areas and a steady increase in their purchasing power, there is a rising demand for consumer durables such as electronics, appliances, and other household goods.

This trend is expected to continue, and it presents a significant opportunity for the companies, operating in the consumer durables sector. These entities can take advantage of this growing market by o_ering innovative products and services, tailored to the needs of urban consumers.

However, the growth in urbanisation also presents some challenges, such as the need for infrastructure development to support the increasing population. Businesses will need to work closely with local governments to ensure that adequate infrastructure is in place to support their operations and meet the needs of the growing urban population.

The growing trend towards urbanisation and the burgeoning demand for consumer durables and FMEG products provide an excellent opportunity for companies like Surya Roshni to further expand their business and meet the needs of consumers.

Development of Rural Areas

The recent progress in electrification coverage in rural India is a crucial development that is set to positively impact the countrys economic growth and overall development. With household electrification levels improving from 55% in 2011 to 99% in 2022, rural households can now enjoy access to basic necessities like lights, fans, and other consumer appliances.

This increased access to electricity is expected to drive demand creation for the consumer durables sector in rural India. Rural households, having access to electricity, are set to generate an increased demand for products like refrigerators, televisions, and other consumer goods. This presents a significant opportunity for businesses operating in the consumer durables sector to tap into this growing market.

Furthermore, with improved access to electricity, rural communities are set to engage in economic activities more productively compared to the earlier years. This window of opportunity is expected to generate more jobs and the growth of small and medium-sized enterprises in rural areas. While the consumption of electricity will rise in the rural area so will the usage of lights and consumer durables. Surya Roshni has positioned itself to capture the rural market as the most deep-rooted distribution network, with major revenue coming from semi-urban and rural markets.

Government Initiative

The Indian Governments proactive steps in embracing LEDs for street lighting in major cities, along with the architectural lighting for national monuments have a strong and encouraging impact on the lighting industry. These e_orts are not only aimed at improving energy e_ciency but also at uplifting the visual appeal of historical sites and key cities.

With the Governments continued focus towards the adoption of LED lighting technology, the demand for LED lighting solutions from businesses operating in this sector is slated to grow. This presents an opportunity for companies to tap into this growing market and o_er innovative LED lighting solutions to suit the requirements of the Government and its various projects. It is expected to drive up the demand for LED lighting solutions in the commercial and residential sectors as well. Surya Roshni has established itself as a formidable player in the consumer lighting segment, ranking second in the country. With the innovative and customer-centric approach of the Company, it has made significant strides in the professional lighting sector, particularly through its smart lighting solutions.

PLI Scheme

The Indian Governments Production-Linked Incentive (PLI) scheme for white goods is a significant step towards enhancing the global competitiveness of Indian air conditioner and LED lighting manufacturers. The scheme provides incentives to manufacturers who meet certain production targets. The budgetary outlay of _ 6,238 crore, in this direction, is to be disbursed over a seven-year period, from 2021-22 to 2028-29. The objective of the scheme is to encourage companies to increase their production capacity and invest in research and development to design new and innovative products. This, in turn, is expected to boost local manufacturing and sourcing of components and create employment opportunities in India. Furthermore, the scheme is expected to attract targeted global investments. The development of a component ecosystem within India by earmarking di_erent segments for specific types of components is the focus of the scheme.

These enhanced opportunities are projected to help Surya Roshni to successfully penetrate FMEG categories, including fans, home appliances and lighting solutions. To reap the benefits, the Company has commenced a manufacturing facility for LED components under the PLI scheme for the ‘Large Investment category.

Operational Review

1) Steel Pipes and Strips

The steel pipes and strips division of Surya Roshni is responsible for manufacturing a diverse range of steel pipe products, catering several rapidly growing industries, including construction, infrastructure, oil & gas, water, and agriculture. The state-of-the-art manufacturing facilities of the Company are based in Haryana, Gujarat, Madhya Pradesh, and Andhra Pradesh. The Company has been steadily growing over the past six years in order to take advantage of the increased demand, derived from new opportunities. All of the products are marketed under the ‘Prakash Surya brand and shipped to more than 50 nations, with the Gulf Cooperation Council (GCC) owning the majority of those exports. The Companys pipes have been instrumental in the construction of several iconic structures, including the Burj Khalifa, Dubai International Airport, Dubai Expo, and the stadiums of FIFA world cup Qatar 2022.

Key Financials

PARTIculAR	2022-23	2021-22
Revenue	6,451.89	6,402.06
EBIDTA	497.17	342.20
EBIDTA Per Ton ( )	6496	4648
Cash Profit	457.41	286.49
Profit Before Tax	368.86	204.45

Government Initiatives Driving Demand

Har Ghar Nal se Jal by 2024

Smart Cities & Pradhan Mantri Sahaj Bijli Har Ghar Yojna Housing for all Aatma Nirbhar Bharat Abhiyaan Pradhan Mantri Krishi Sinchai Yojana (PMKSY) Pradhan Mantri Jal Marg Yojana (PMJMY) Ude Desh Ka Aam Naagrik Regional Coneectivity Scheme (UDAN-RCS) Atal Mission for Rejuvenation and Urban Transformation (AMRUT)

Application Areas

GI PIPes	BlAcK	Hollow
Agriculture and irrigation Casting and tubing	Industrial infrastructure/ construction works/fabrication	Engineering and architectural structures
Water transportation / plumbing and pipelines	Road transportation – side structures/fencing (section pipe, sign boards)	Airport, metros, railways Urban development
Green houses	Railways – platforms and metros	Electrical poles/telecom towers
Fire fighting	Airports structures	Solar structure
Street light poles	Smart cities infrastructure	Sign boards
Solar panels	River connectivity and interlinking
	Door frames, window frames and furniture (section pipes)
	Door frames, window frames and furniture (section pipes) Sca_oldings

PRODUCT OFFERINGS

A_ ELECTRIC RESISTANCE WELDING _ERW STEEL PIPES_

The ERW pipes, made by Surya Roshni, with a wide range of construction projects. These include sca_olding, casing, and bore well tubing as well as in agricultural, water transportation, firefighting, irrigation, greenhouses, and other industries. Additionally, they are employed in the long-distance transportation of liquids such as water, gas, oil, chemicals, and others. The product meets all national and international quality standards.

Our Edge

Leading manufacturer of ERW GI Pipes in India Key exporter of ERW Pipes, with 60% market share Pan-India presence for GI Pipes, with leadership position in South India and one among the top three in North India Dominant presence in the organised segment Resilience amidst di_cult industry conditions Manufacturer of products equipped to cater to the hilly regions of India, providing the pipes required for housing in Jammu & Kashmir, Uttarakhand, and Himachal Pradesh, among others Capability to produce margin-accretive, value-added o_erings such as coated pipes, alkyd pipes, grooved, red oxide primer pipes and heat-treated pipes, among others

Demonstrated capability of providing high-quality durable pipes to prominent industry names such as IOCL, BPCL, BGRL, Gujarat Gas, MNGL and MGL, among others Accredited to all major PMC committee such as EIL and Mecon, among others

B_ API PIPES

The Company produces international quality API pipes, such as the 3LPE, 3LPP, and FBE (single and dual layer). The epoxy coatings provide rust resistance while enhancing durability Selmers in the Netherlands provided the Company a world class 3LPE Coating plant machinery. The pipe is commonly used in the transportation of petroleum and natural gas, as well as in city gas distribution and water pipes. The ongoing emphasis of the Government on these high-growth areas are going to benefit the Company in the long-run.

Our Edge

Produces a diverse range of pipes, including EN, BS, AUSTRALIA and ASTRA GRADE

Utilises the existing o_ine capacities post-expansion e_ciently, to achieve cost e_ciencies and improved margins Boasts accreditations from major PMC such as EIL and Mecon, among others Certifications of ISO 9001, 14001 & 18001

D_ COLD ROLLED STRIPS AND SHEETS

The Company processes Cold Rolled Steel Strips (CR sheets), with a width of up to 720 mm and thickness of 0.3 to 0.6 mm. These strips o_er a variety of outstanding properties, including easy formability and a smooth, clean surface. The CR sheets are available in both wide and narrow range. While the wide range is used in the downstream operations by large players, narrow range caters to the niche and customised requirements of the customers. The Company manufactures narrow range CR sheets which help in production of electrical stamping. This stamping is used in a wide range of products, including motors, cycle and 2-wheeler rims, automobile components, furniture and fitting, drums and barrels, umbrella ribs and tubes and in miscellaneous engineering applications.

Our Edge

O_ers consistent quality for the end-user segment Sells products across NCR and di_erent markets of North India Leverages small order sizes to yield good returns and keeps the unit fully-engaged across the year

2) Lighting and Consumer

Durables

LIGHTING

Surya Roshni ventured into lighting in 1984 and has successfully transitioned over the last few years from being one of the market leaders of conventional lighting to becoming one of the leading LED lighting players. The Company has state-of-the-art manufacturing facilities at Kashipur, Uttarakhand, and Malanpur, Madhya Pradesh. Besides, it also has an advanced R&D centre, the Rs.Surya Technology & Innovation Centre (STIC), at Noida. The Company is engaged in the manufacture and sales of Conventional Lighting (GLS, Tube lights) and energy-e_cient LED Lighting (LED bulbs, tube lights, battens, downlighters, and other luminaires) in the consumer segment. Furthermore, it produces advanced Smart LED products for street lighting, infrastructure, industry, o_ce, and retail segments in the professional segment.

Over time, the Company has earned a reputation as a reliable and highly-regarded brand in the lighting industry. It takes pride in being recognised as the second-leading manufacturer player in the consumer lighting segment.

Value Creation in Lighting

Increased sales volumes, revenues, and profits over the years

Diversified the product portfolio, with strong market leadership in the organised sector Launched over 200 new products over the last three years

Developed strong bonding with distributors, dealers, and retailers, leading to high loyalty

Developed a pan-India reach, with a very strong semi- urban and rural presence

Created a strong brand, well-accepted across India and globally

Reduced energy consumption through continuous energy conservation initiatives

Key Financials

PARTIculAR	2022-23	2021-22
Revenue	1,545.17	1,332.93
EBITDA	122.34	106.47
Cash Profit	117.25	98.53
Profit Before Tax	90.39	72.19

Key Highlights: 2022-23

LED revenue grew by 27% and **reached very close to _ 1000 crore**, backed by value-added products like LED battens and down-lighters. LED Street light grew by 61% Professional Lighting witnessed 38% growth in revenue Investment under PLI scheme is as per plan and will benefit from in-house manufacturing of components at reduced cost Total borrowings as of 31^st March is at their lowest ever

CONSUMER DURABLES

FANS

Surya Roshni made a significant breakthrough in 2014 by venturing into the fans category. The Company has achieved the remarkable feat of reaching the 100-crore mark faster than any other organisation. The Company o_ers a wide variety of contemporary designs, from designer fans to more a_ordable options. The extensive selection includes BLDC fans, pedestal, wall, table, ceiling, pedestal, and industrial and domestic exhaust fans. Smart premium fans with anti-dust, anti-bacterial, high-air-delivery, and energy-e_cient features are part of the Companys product portfolio.

HOME APPLIANCES

Since its entry into the home appliances market in 2015, Surya Roshni has continued to deliver a unique value proposition to its customers through its exceptional products.

The business serves Indian consumers needs across six major product categories.

cATeGoRy	PRoDucTs
Food Preparation	Mixer Grinders Juicer Mixer Grinders
Kitchen Appliances	Gas Cook Tops – Glass and Stainless Steel Bodies
	Induction Cook Tops
	Aqua Kettles
Cooking	Indi Cook Rice Cookers
	Sandwich Maker
	Pop-up Toaster
Garment Care	Dry Iron
	Steam Irons
Heating Appliances	Storage Water Heater
	Instant Water Heater
	Oil-Filled Radiator
	Halogen Heater
Climate Control	Quartz Heater
	Carbon Heater
	Room Cooler

Future strategies and outlook

Surya Roshni remains focussed in its commitment to sustain its high-growth trajectory in the consumer lighting segment. To achieve this, the Company is prioritising the improvement of its distribution channels, while expanding its reach across urban, semi-urban, and rural areas throughout India. The Company is set to introduce several new LED lamps, battens, and downlighters, with a special emphasis on smart lighting solutions. Additionally, Surya Roshni plans to continue to aggressively drive channel financing to augment its growth prospects.

In the professional lighting segment, the Company will strengthen its key account management, project execution capabilities, and design teams to concentrate on customers and improve its ability to execute projects. With continuous e_orts and focus on improving the distribution and reach across urban, semi-urban and rural India. Surya Roshni has been able to achieve high growth momentum over the years and is scheduled to launch new products in various segments, including smart products and solutions, with a focus on high-growth areas such as fa?ade and solar lighting.

In the consumer durables segment, the Company aims to focus on gaining market share in both fans and appliances through expanding the product range of fans, across types and price points. The Company would also launch several new products in appliances, including water heaters, room heaters, mixer grinders, and induction cooktops. Going ahead, to leverage its distribution network across the tier cities, the Company will be focussing on aggressive advertising and promotions which will enhance its brand visibility as well.

Surya Roshni is committed to aggressively promoting its brand visibility through above-the-line and below-the-line advertising. It continues to invest in automation and upgrading its systems to improve e_ciency and productivity. The Company is also investing in the PLI scheme for LED lighting to gain further business advantages.

Surya Roshni thrives as a trusted brand, with its consumer-centric approach, focus on innovation and quality, and broad range of products. With a strong distribution network, experienced management, e_cient working capital management, and supportive Government initiatives such as Rs.Atmanirbhar Bharat and the PLI scheme, it will further enable the Company to achieve sustainable growth.