Marine Electricals (India) Ltd Management Discussions

Overview of the Companys Business:

Marine Electricals has achieved significant YOY growth in the last scal. This is more due to the thriving business environment and our intense focus on the existing panel business, creating niche positioning in sub-segments and harnessing specializations within the sector. Additional business segments in related sectors are also being nurtured. Marine Electricals business sustenance and growth prospects are closely linked to the overall economic growth of the Nation and the growth of Electrical, Navigation & Communication, and Automation solution needs of India and the neighboring countries where MEIL has a strong footprint. Infrastructure growth fuels the demand for our proprietary Energy Management System (EMS), Building Management Solutions (BMS), Block-set and Bus-duct solutions; Switchboards, and Power Distribution Boards. Our industry products are known for their Real-time thermal safety monitoring, iPMC (intelligent Power and Motor Control), Ergonomic design, and IoT-ready wireless connectivity (ME Connect).

Further, the growth of Marine / Shipping industry also brings significant opportunities and value propositions to our services business concentrated in India and the Middle East. Strong electrical, electronics and NAVCOM back-bone clubbed with the growing services portfolio helps to leverage MEIL as a turn-key package solution provider to the shipyards as a credible integrator. This also enables us to attempt larger repair and service contracts.

The Management Discussion and Analysis of MEIL, therefore focuses on the eco-system and the trends of business opportunities emerging from these sectors and analyses our competitive positioning in these businesses. Our company has taken timely steps for horizontal and vertical expansions into related business and technology segments with measured low-risk manageable steps.

Our agility and performance during the COVID-19 Pandemic has given us con dence that we can adapt to worse situations very quickly and align to the new unknown challenges relatively well. We have come out of the COVID crisis more successfully than our competitors in the eco-system.

Performance of the Company:

The Key Financials Parameters of Standalone and Consolidated Basis are as follows:

Standalone:

Standalone:
Particular	As on 31 March 2025	As on 31 March 2024
Debt/Equity Ratio	0.08	0.34
Debt Service Ratio	3.33	4.02
Interest Coverage Ratio	10.75	7.85
Current Ratio	2.19	1.46
Net Profit Ratio	5.86%	5.32%
Operating Profit Ratio:	8.91%	8.85%
Consolidated:
Particular	As on 31 March 2025	As on 31 March 2024
Debt/Equity Ratio	0.12	0.38
Debt Service Ratio	3.15	3.44
Interest Coverage Ratio	9.27	6.76
Current Ratio	2.14	1.48
Net Profit Ratio	4.97%	4.14%
Operating Profit Ratio:	8.96%	8.32%

Revenue from operations: Standalone: 70,058.40 Lakhs Consolidated: 76,709.53 Lakhs.

Performance of each Segments

Our Company is mainly dealing into two segments viz Electricals & Electronics. The Company has been receiving orders from customers for Electricals & Electronics segment on regular basis. The Company achieved revenues of Rs. 32954.77 Lacs for Marine segment & Rs. 37,103.63 for Industry Segment during FY 2024-25 as against Rs. 26,579.20 Lakhs for Marine Segment and 26,793.49 for industry segment during FY 2023-24. The Company achieved PBIT of 2611.31 Lacs for Marine Segment and 2495.02 Lacs for industry segment during FY 2024-25 as against Rs. 2611.25 Lakhs for Marine Segment and Rs. 1495.22 Lakhs for Industry Segment during FY 2023-24.

Economic Environment: A robust GDP growth indicator

Indian Economy Speaks: (Source: https://www.forbes.com)

India is already on the path to economic greatness, having surpassed Japan recently to become the 4th largest economy in 2025. Thats just the beginning! By 2028, India is also expected to become the worlds third-largest economy, moving ahead of Germany. India is aiming to add about USD 1 trillion to its GDP every 12 to 18 months over the next decade, targeting a CAGR of 9% nominal GDP growth rate from 2025 to 2047. While this is ambitious, Indias strong macroeconomic fundamentals, demographic advantages, urbanization, growing capital market, and focus on structural reforms are some of the main drivers that provide a solid foundation for sustainable growth.

Electricity demand in India (Source: https://www.iea.org/)

Electricity demand in India has been rising sharply due to increases in commercial and residential space, a surge in ownership of air conditioners and appliances, and rising demand from industry. India has seen the third-largest growth in power generation capacity in the world after China and the United States over the past ve years. While growth in power generation has come from all sources, there has been a surge in investment in renewables, led by solar PV, which constitutes more than half of total non-fossil investment over this period. In 2024, 83% of power sector investment went to clean energy. India was also the worlds largest recipient of development nance (DFI) funding in 2024, receiving around USD 2.4 billion in project-type interventions in clean energy generation. This helped bring the share of non-fossil power generation capacity to 44% in 2024, approaching Indias target of 50% by 2030. Marine Electricals has already positioned itself as a solution provider of Hybrid Energy solutions involving Solar, Storage batteries, Diesel and conventional energy sources.

Electrical Power Generation and Distribution Sector

The core business of Marine Electricals is directly or indirectly impacted by the demands & opportunities, developments & investments, Govt policies & Initiatives and visibility in the foreseeable future in the electrical power generation and distribution sector.

The power sector investment reached a new high of USD 1.5 trillion in 2024, driven primarily by record investment in sources of low emissions generation, as well as grids and battery storage. The growth trend is upward and promising. India looks set to reach its 2030 target of 50% non-fossil generation capacity ahead of schedule.

It is worthy to observe from the above that India is growing faster on the path of clean energy, compared to the world average. Hence, the demand of hybrid energy solutions (fossil and non-fossil combine) is going to rise. Marine Electricals already has a focus and lead positioning on hybrid energy solutions.

India is on track for 50% of its power generation capacity to be from non-fossil sources, ahead of its target year of 2030, on the back of surging solar PV investment.

The impact of Arti cial Intelligence (AI) and Data Centers (DC) on Electricity Generation Investment

The energy solutions for data centers being a new and sustained focus for Marine Electricals, it is worth looking at its prospects. International Energy Agency report on ‘World Energy Investment 2025 (10th Ed) estimates Annual Data Centre (DC) investment has surged by 67% over the past two years. Another USD 4.2 trillion of investment is expected from 2025 to 2030 globally, and electricity demand from DCs could double to 950 TWh by 2030. Access to energy has consequently emerged as a principal concern for DC operators. New power demands will require over USD 170 billion for new generation capacity by 2030.

Power Sector Advantages in India:

Power is among the most critical components of infrastructure, crucial for the economic growth and welfare of nations. The existence and development of adequate power infrastructure is essential for sustained growth of the Indian economy. The fundamental principle of Indias power industry has been to provide universal access to a ordable power in a sustainable way. The Ministry of Power has made significant efforts over the past few years to turn the country from one with a power shortage to one with a surplus by establishing a single national grid, fortifying the distribution network, and achieving universal household electri cation.

Indias power sector is one of the most diversi ed in the world. Sources of power generation range from conventional sources such as coal, lignite, natural gas, oil, hydro and nuclear power, to viable non-conventional sources such as wind, solar, agricultural, and domestic waste. Electricity demand in the country has increased rapidly and is expected to rise further in the years to come. In order to meet the increasing demand for electricity in the country, massive addition to the installed generating capacity is required.

Electrical Energy Market Size and Demand

India is the third-largest producer and consumer of electricity worldwide, with an installed power capacity of 466.24 GW as of January 31, 2025.

As of December 2024, India has a total installed capacity of 209.45 GW for renewable energy sources, including large hydropower. The breakdown is as follows: Wind power at 48.16 GW, solar power at 97.87 GW, biomass/co-generation at 10.73 GW, small hydropower at 5.10 GW, waste to energy at 0.62 GW, and large hydro at 46.97 GW. This diverse mix highlights Indias significant strides in expanding renewable energy infrastructure for a more sustainable energy future.

The non-hydro renewable energy capacity addition stood at 15.27 GW in FY23, up from 14.07 GW in Fy22.

Indias power generation witnessed its highest growth rate in over 30 years in FY23. Power generation in India increased by 6.80% to 1,452.43 billion kilowatt-hours (kWh) as of January 2024. According to data from the Ministry of Power, Indias power consumption stood at 1,503.65 BU in April 2023.

The peak power demand in the country stood at 249.85 GW in September 2024. Energy Prospects / Investments (Indian Industry) Sources: CEA Reports, PIB releases and Union Budget; https://powermin.gov.in/

Total FDI in flows in the power sector reached US$ 18.34 billion between April 2000-June 2024, accounting for 2.64% of the total FDI in flow in India.

Some major investments and developments in the Indian power sector are as follows:

In FY25 (until December 2024), the power generation in India is very promising at 1,378.418 BU.

In FY24 (until March 2024), the power generation in India was all time high at 1,739.09 BU.

Cumulative FDI in flow in the power sector stood at US$ 19.59 billion between April 2000-Septemer 2024.

In FY25 (until December 2024), the power generation in India is very promising at 1,378.418 BU.

In FY24 (until March 2024), the power generation in India was all time high at 1,739.09 BU.

Cumulative FDI in flow in the power sector stood at US$ 19.59 billion between April 2000-Septemer 2024.

In 2023-24, Indias renewable energy sector received Rs. 32,141 crore (US$ 3.7 billion) in foreign investment.

India has received a cumulative amount of US$ 3.8 billion in Foreign Direct Investment (FDI) in the solar energy sector over the past three scal years and the ongoing scal year until September 2023.

India ranked fourth in the list of countries to make significant investments in renewable energy by allotting US$ 77.7 billion between 2015 and 2022.

Indias electricity generation from renewable and non-renewable sources for FY21, FY22, and FY23 was 1,373.08 BU, 1,484.36 BU, and 1,617.72 BU, respectively.

The power generation industry in India will require a total investment of Rs. 33 lakh crore (US$ 400 billion) and 3.78 million power professionals by 2032 to meet the rising energy demands, as per the National Electricity Plan 2022-32.

By 2031, the current installed nuclear power capacity is expected to rise from 7,480 MW to 22,480 MW because of the progressive completion of projects under construction and accorded sanction.

As informed in August 2023, towards achieving carbon neutral Ladakh, NTPC is setting up a hydrogen fuelling station, and solar plant and providing ve fuel cell buses for operation on intracity routes of Leh.

In August 2023, North Eastern Electric Power Corporation Limited (NEEPCO), a 100% subsidiary of NTPC, took a significant step towards sustainable energy development by signing a Memorandum of Agreement (MoA) with the Government of Arunachal Pradesh.

In July 2023, NTPCs Group installed capacity touched 73,024 MW.

In July 2023, PFC signed various MoUs worth Rs. 2.37 lakh crore (US$ 29 billion) with 20 companies in the clean energy space.

India has the potential to attract an investment of over US$ 20 billion in renewables in 2023.

In May 2023, NTPC commenced its venture into hydrogen and energy storage solutions with the establishment of a hydrogen hub in Andhra Pradesh.

In May 2023, TP Saurya Tata Power Trading Company Ltd. signed a power purchase agreement to set up a 200 MW solar project at Bikaner, Rajasthan.

Adani Group is exploring a US$ 3 billion investment in Vietnams seaport ecosystem and wind and solar energy projects.

In January 2023, the Union Cabinet (CCEA) approved investment of Rs. 2,614 crores (US$ 315 million) for Satluj Jal Vidyut Nigam (SJVN)s 382MW Sunni Dam Hydro Project.

SJVN is an Indian public sector company involved in hydroelectric power generation and other renewable energy projects. Originally established as a joint venture between the Government of India and the Government of Himachal Pradesh, SJVN has expanded its operations across various states and even internationall

In January 2023, President of India laid foundation stone of SJVNs 1000 MW Bikaner Solar Power Project in Rajasthan.

In January 2023, the President of India dedicated transmission system built by PowerGrid for 8.9 GW of solar power in Rajasthan.

Mumbai headquartered Essar Group has formed the Essar Energy Transition (EET) with the objective to invest a total of US$ 3.6 billion in developing a range of low carbon energy transition projects over the next ve years.

In November 2022, the Maharashtra State Electricity Distribution Corporation Limited (MSEDCL) granted the

"Letter of Award" (LoA) to Tata Power Renewable Energy Limited (TPREL), a Tata Power subsidiary, to build a 150 MW solar project in Solapur, Maharashtra.

In October 2022, SJVN started commissioning its 75 MW Solar Power Project in Parasan Solar Park which is located at Tehsil Kalpi, District Jalaun near Kanpur, Uttar Pradesh.

In August 2022, NHPC Limited and the Government of Himachal Pradesh inked an implementation agreement for the 500 MW Dugar Hydroelectric Project in the Chamba District of Himachal Pradesh.

In August 2022, Norfund, who manage the Norwegian Climate Investment Fund, and KLP, Norways biggest pension company, signed an agreement to buy a 49% share of a 420 MW solar power plant in Rajasthan for Rs. 2.8 billion (US$ 35.05 million).

In August 2022, Tata Power Green Energy Limited (TPGEL), a wholly owned subsidiary of Tata Power, commissioned a 225MW hybrid power project in Rajasthan.

In August 2022, NHPC signed a MoU with the Investment Board Nepal (IBN) to develop 750 MW West Seti and 450 MW SR-6 Hydroelectric Projects in Nepal.

In July 2022, NTPC signed a MoU with MASEN (Moroccan Agency for Sustainable Energy) for cooperation in the renewable energy sector.

In June 2022, SJVN announced a collaboration with the Assam government for the development of hydro and renewable energy projects in the state.

In June 2022, SJVN signed investment agreements worth Rs. 80,000 crore (US$ 10.24 billion) with the Uttar

Pradesh government for implementing three solar power projects in the state.

In May 2022, SJVN signed a pact with Tata Power Solar Systems to build a 1,000 MW solar project worth Rs. 5,500 crore (US$ 704.38 million) in Bikaner, Rajasthan.

In June 2022, NTPC declared commercial operation of second part capacity of 15 MW out of 56 MW Kawas Solar PV project in Gujarat.

In June 2022, NHPC signed an engineering, procurement, and construction (EPC) contract with Adani Infra Limited to develop a 600 MW solar project under the Central Public Sector Undertaking program (Phase-II).

Investment in Indias renewable energy sector grew more than 125% YoY to touch a record US$ 14.5 billion in Fy22.

In March 2022, NTPC announced that it was ready to start partial power generation of 10 GW from a 92 MW floating solar energy plant being set up at NTPCs unit at Kayamkulam in Kerala.

In March 2022, NTPC announced that it will start commercial operations of 74.88 MW capacity of its 296 MW Fatehgarh solar project in Rajasthan.

In March 2022, Adani Solar, and Smart Power India (SPI), a subsidiary of Rockefeller Foundation, signed a non- financial and non-commercial MoU promote the usage of solar rooftop panels in rural India.

In February 2022, Kolkata-based Eminent Electricity Distribution Ltd., a subsidiary of CESC Limited, bid Rs. 871 crore (US$ 113.24 million) to take over Chandigarhs power supply department, which was approved, and the transition will happen by the end of March.

SJVN Limited is looking to develop 10,000 MW solar power projects inviting investment of Rs. 50,000 crore (US$ 6.56 billion) in the next ve years in Rajasthan.

In November 2021, NTPC announced that its 80 MW solar power-generation capacity in Jetsar (Rajasthan) has started commercial operations from October 22, 2021. The total capacity of the project is 160 MW.

In November 2021, SJVN began the second unit work of the 1,320 MW Buxar thermal power plant in Bihar. Government Policies & Initiatives

The Government of India has identified the power sector as a key sector of focus to promote sustained industrial growth. Some initiatives by the Government to boost the Indian power sector are as below:

India has unveiled a comprehensive plan worth Rs. 9.15 lakh crore (US$ 109.50 billion) to enhance its power

infrastructure and meet a projected demand of 458 GW by 2032. This initiative, led by the Ministry of Power under Prime Minister Mr. Narendra Modi, aims to strengthen the national power grid and boost energy security. The Government of India has approved new Inter State Transmission System (ISTS) schemes to evacuate 9 GW of RE power from Rajasthan and Karnataka. These schemes will be implemented through Tari Based Competitive Bidding (TBCB) mode. These schemes are part of 500 GW RE capacity by 2030 out of which 200 GW is already connected.

The Union Cabinet has sanctioned the PM-Surya Ghar: Muft Bijli Yojana. This initiative, with a total budget of Rs. 75,021 crore (US$ 9 billion) aims to install rooftop solar systems and offer complimentary electricity of up to 300 units per month to one crore households.

The Union Budget 2025-26 marks the launch of a Nuclear Energy Mission, which focuses on the research and development (R&D) of Small Modular Reactors (SMRs). The government has allocated Rs. 20,000 crore (US$ 2.33 billion) for this initiative, with the aim of developing at least ve indigenously designed and operational SMRs by 2033.

The Union Budget 2025-26 outlines a strategy for the development of Bharat Small Reactors (BSRs), which are designed to reduce land requirements and support industries in decarbonization efforts. Under this plan, private sector entities will provide land, cooling water, and capital, while the Nuclear Power Corporation of India Limited (NPCIL) will be responsible for the design, quality assurance, operation, and maintenance of the reactors.

In the Union Budget 2025-26, the government boosted its agship rooftop solar initiative, PM Surya Ghar: Muft Bijli Yojana, by allocating Rs. 20,000 crore (US$ 2.33 billion) an 80% increase to fast-track the deployment of rooftop solar projects.

In the Budget for 2024, the governments power sector initiatives have been allocated funds that are 50% higher. Increased funds have been allocated to green hydrogen, solar power, and green-energy corridors in line with the renewable energy target for 2030.

In the Union Budget 2022-23, the government allocated Rs. 7,327 crore (US$ 885 million) for the solar power sectorincluding grid, o -grid, and PM-KUSUM projects.

Under the Union Budget 2022-23, the government announced the issuance of sovereign green bonds, as well asconferring infrastructure status to energy storage systems, including grid-scale battery systems.

The Green Energy Corridor projects have been initiated to facilitate renewable power evacuation and reshaping the grid for future requirements. As on October 2022, 8651 ckm of intra-state transmission lines have been constructed and 19,558 MVA intra-state substations have been charged.

To encourage rooftop solar (RTS) throughout the country, Ministry New and Renewable Energy has developed a National Portal wherein any residential consumer from any part of the country can apply for rooftop solar without waiting for Discom to nalize tender and empanel vendors. Since the launch on July 30, 2022, the total number of applications received on the national portal is for 117 MW solar capacity and the feasibility of more than 18 MW projects is granted.

Production Linked Incentive Scheme (Tranche II) on ‘National Programme on High E ciency Solar PV Modules, with

an outlay of Rs. 19,500 crore (US$ 2.47 billion) was approved and launched.

As of August 24, 2022, over 36.86 crore LED bulbs, 72.18 lakh LED tube lights and 23.59 lakh energy-e cient fans have been distributed across the country, saving around 48,411 million kWh per year and around Rs. 19,332 crore (US$ 2.35 billion) in cost savings.

As of November 2022, over 51.62 lakh smart metres have been deployed under the National Smart Grid Mission(NSGM), with a further 61.13 lakh to be deployed.

Electri cation in the country is increasing with support from schemes like Deen Dayal Upadhyay Gram Jyoti Yojana(DDUGJY), Ujwal DISCOM Assurance Yojana (UDAY), and Integrated Power Development Scheme (IPDS).

In order to meet Indias 500 GW renewable energy target and tackle the annual issue of coal demand supply mismatch,the Ministry of Power has identified 81 thermal units which will replace coal with renewable energy generation by 2026.

In February 2022, a parliamentary standing committee recommended the government to take steps to increase the loanlimit for renewable energy sector under priority sector lending. The current limit stands at Rs. 30 crore (U$ 3.93 million).

In December 2021, West Bengal got a loan approval for US$ 135 million from the International Bank for Reconstruction and Development (also called the World Bank) to improve the operational efficiency and reliability of electricity supply in select regions in the state.

In November 2021, the government announced future plans to increase the funding under the PLI scheme for domestic solar cells and module manufacturing to Rs. 24,000 crore (US$ 3.17 billion) from the existing Rs. 4,500 crore (US$ 594.68 million) to make India an exporting nation.

In November 2021, Energy E ciency Services Limited (EESL) stated that it will partner with private sector energyservice companies to scale up its Building Energy E ciency Programme (BEEP).

In September 2021, the Government of the United Kingdom announced that it will invest US$ 1.2 billion through public and private investments in green projects and renewable energy in India to support the latters target of 450 GW of renewable energy by 2030.

The Pradhan Mantri Sahaj Bijli Har Ghar Yojana, "Saubhagya," was launched by the Government of India with an aim of achieving universal household electri cation. As of March 2021, 2.82 crore households have been electri ed under this scheme.

According to the S&P Global Platts Top 250 Global Energy Rankings 2021, Reliance Industries Ltd. and Indian Oil Corp.

Ltd. ranked 3rd and 6th, respectively.

Way Forward:

In the current decade (2020-29), the Indian electricity sector is likely to witness a major transformation with respect to demand growth, energy mix and market operations. India wants to ensure that everyone has reliable access to sufficient electricity at all times, while also accelerating the clean energy transition by lowering its reliance on dirty fossil fuels and moving toward more environmentally friendly, renewable sources of energy. Future investments will benefit from strong demand fundamentals, policy support and increasing government focus on infrastructure.

The Government of India is preparing a rent a roof policy for supporting its target of generating 40 GW of power through solar rooftop projects by 2022. It also plans to set up 21 new nuclear power reactors with a total installed capacity of 15,700 MW by 2031.

The Central Electricity Authority (CEA) estimates Indias power requirement to grow to reach 817 GW by 2030. Also, by 2029-30, CEA estimates that the share of renewable energy generation would increase from 18% to 44%, while that of thermal energy is expected to reduce from 78% to 52%.

The government plans to establish renewable energy capacity of 500 GW by 2030.

References: Central Electricity Authority, Ministry of New and Renewable Energy, Media Reports, Press Releases,

Press Information Bureau (PIB), Union Budget 2022-23, Union Budget 2023-24.

Naval Shipbuilding

1. The Indian Navy is one of our premier clients for both defence and marine businesses. The Make In India movement of the Government has also catalyzed the shipyards and DPSUs to enhance the degree of indigenization in shipbuilding. The strong order book and production performance of PSU ship building yards such as MDL, CSL, and GRSE have resulted in their share prices zooming in the recent times. These are the symptoms of healthy business flows from the top progressively to the systems integrators, vendors and OEMs. Marine Electricals is a reputed and well established total solution provider or, systems integrator; in addition to being OEM for over 25 major product categories. Further, more and more equipment are being brought into the indigenization umbrella. Enhanced percentage of indigenous content is also being encouraged. The vision of a 200 strong combat eet by 2027 is also a catalyzer. In wake of the naval vision, warship construction has witnessed an unprecedented growth. This has been one of the significant growth impetus for Marine Electricals as well.

I. The various projects of Indian Navy, at different stages of execution in shipyards are tabulated below (excluding smaller ships/ crafts). This is the current business concentration of the Naval division of our Company:

Sr.No. Project	Type	No of Ships	Shipyard	Notes
(a) P17A	Frigates Nilgiri Class	07	Mazagon Dock Shipbuilders Ltd. & Garden Reach Shipbuilders Ltd.	One ship commissioned. Two ships planned for commissioning by End Jul 25.
(b) Follow on 1135.6	Frigates Trikand Class	02	Goa Shipyard Ltd.	Under Construction
(c) Sandhayak Class	Survey Vessel (Large)	04	Garden Reach Shipbuilders Ltd.	2 ships commissioned.
(d) Anti-Submarine Warfare Shallow Water Craft	Warship ASW SWC	16	Cochin Shipyard Ltd. Garden Reach Shipbuilders Ltd.	One ship commissioned. Balance under construction
(e) DSV Nistar Class	Diving Support Vessel	02	Hindustan Shipyard Ltd.	DOne ship commissioned. I&C services on second ship nearing completion.
(f) FSS	Fleet Support Ship (Tanker)	05	Hindustan Shipyard Ltd.	Under Construction
(g) NG OPV	Next Gen Offshore Patrol Vessels	11	Goa Shipyard Limited (07), Garden Reach Shipbuilders & Engineers (04)	Under Construction
(h) NG MV	Next Gen Missile Vessels	06	Cochin Shipyard Ltd.	Under Construction
(i) MPVs	Multi-Purpose Vessels	02	L&T Shipbuilding	Under Construction
(j) CTS	Cadet Training Ships	03	L&T Shipbuilding	Under Construction
(k) SSP/FDN - 3	Floating Dock (Navy)-3	01	Hindustan Shipyard Ltd.	Under Construction
(l) DSC	Diving Support Craft	05	Titagarh Wagons	Under Construction
(m) Arihant class	Ballistic missile submarine (SSBN)	03	Advanced Technology Vessel (ATV) program	Under Construction
(n) Midget Submarine	For Special Forces	01	Mazagon Dock and Shipbuilders Ltd	Under Construction Under Construction
(o) FDN	Floating Dock (Navy)	01	MDSL
(p) NGC	Next generation corvettes	08	Garden Reach Shipbuilders Ltd. Engineers	Lowest bidder declared in May 25.
Total		81

II. Shipbuilding Projects of the Indian Navy on the Anvil / Planning Phase. This forms longer term business target for Marine Electricals spanning over next few years:

Ser Project	No. of Ships
(a) P17B Frigates. Approved by Defence Acquisition Council and Budget	08
(b) P-18 Class Destroyers, follow on of Visakhapatnam Class	08
(c) Next Gen Survey Vessel, approved by DAC and Budgeted	05
(d) MPVs (additional 02). Approved by DAC in 2025. RFP under issue.	02
(e) MCMV, Mine Counter Measure Vessels. Mine Sweepers. The Defence Acquisition	12
Council approved the Acceptance of Necessity (AoN) and Budget, on 3 July 2025
(f) ASV-MCM, Autonomous Surface Vessels for Mine Counter Measure Operations	10
Ser Project	No. of Ships
(g) Survey Training Vessel	01
(h) IAC 2, Indian Aircraft Carrier 2	01
(i) Fast Interceptor Craft	20
(j) National Hospital Ship	01
(k) Midget Submarine (HSL)	02
(l) Landing Crafts	06
(m) Next Generation Fast Attack Crafts (NG FACs)	07
(n) LPD, Landing Platform Dock	04
(o) P-76 class attack submarine	06
(p) P75(I) AIP Submarines	06
Total	99

III. In addition to the Indian Navy, the Indian Coast Guard is also engaged in a massive expansion plan and

is in the process of acquiring various craft to strengthen the maritime boundaries of the country.

IV. However, the performance of private shipbuilding industry has been much better in terms of project completion mainly attributable to less complex weapons and sensors, leading to timely completion of the project. The various shipbuilding projects of Indian Coast Guard in progress / planning phase are as below.

Sr. No. Project	Quantity	Shipyard
(a) Fast Patrol Vessel	08	Goa Shipyard Ltd (Awarded in Mar 22)
(b) FPV	14	Mazagon Dock Shipbuilders Limited (MDL)
(c) NG OPVs	06	Mazagon Dock Shipbuilders Limited (MDL)
(d) Training Ship	01	RDEL NCLT, Retender in progress
(e) Interceptor Boats	15	BDIL
(f) FSB	05	BDIL
(g) Pollution Control Vessel	02	Goa Shipyard Limited
Total	51

V. Shipbuilding Projects of Coast Guard in Planning Phase: Which would add to the business target over coming decade:

Sr. No. Project	No. of Ships
(a) New Generation Fast Patrol Vessels (RFI 08 Jun 21)	18
(b) OPVs (RFI 28 Feb 2022)	06
(c) Air Cushion Vessel	06
Total	30

Marine Electricals agship equipment namely, Integrated Bridge System, NAVCOM systems including navigation radars, Navigation light control panel, Main Switchboard, assorted control panels for pumps, motors, HVAC etc, alarm monitoring systems and a host of data aggregation control systems for re, ood and auxiliary machinery control systems are needed by all above ships. This forms a significant established business segment for the naval division of Marine Electricals. We have reached maturity of series production for some equipment like ruggedized UPS and solid-state Auto Transfer Switch. Our portfolio of Integrated Platform Management System (IPMS) is also expected to grow.

Commercial Export Focused Shipbuilding

India is surging toward a maritime renaissance, poised to rede ne its stature in global shipbuilding. The nations shipyards pulse with innovation, efficient technology, and skilled craftsmanship. This is a pivotal moment a dynamic ascent fueled by advanced manufacturing, sustainable practices, and strategic public-private partnerships, positioning India among the worlds shipbuilding titans.

Ascela in association with Invest India have published their white paper on ‘Ambitious Shipbuilding Momentum: Indias Leap towards Global Shipbuilding Dominance in July 2025. It states Indias shipbuilding industry is entering a high-growth trajectory, underpinned by strong policy support, defence procurement, and maritime infrastructure expansion. Rising global demand for green and specialised vessels are catalysing domestic shipyard expansion and technological advancement in both commercial and defence segments. While the sector faces scale limitations, deep-tech integration gaps (e.g., digital twin, AI-based design), and limited access to specialised marine-grade raw materials, these also represent high-return entry points for private and foreign investors.

The capital-intensive nature of the industry demands stronger PPP models, private equity participation, and FDI in flow for modernisation of legacy shipyards. With targeted incentives, a push for indigenisation, and the global pivot towards decarbonised shipping, India is well-positioned to become a regional hub for sustainable and strategic shipbuilding.

The strategic action areas are shown here:

Indian Shipbuilding: Current Landscape and Strategic Action Areas

As of 2025, Indian shipyards are actively expanding their commercial shipbuilding capabilities and securing export orders. Here are some key developments. Marine Electricals has a share in these export opportunities, particularly in providing electrical, automation and NAVCOM package:

Mazagon Dock Shipbuilders Limited (MDL) has for secured a significant export order Multi-Purpose

Vessels (MPVs) from Navi Merchants, Denmark. Here are the key details:

MPV Project Overview

Client: M/s Navi Merchants, Denmark

Number of Vessels: 6 MPVs

Contract Value: Approx. $14 million USD per vessel

Total Value: Around $84 million USD

Milestones

Plate Cutting Ceremony: Held on 24 September 2024

Keel Laying Ceremony: Conducted on 2 April 2025

Scheduled Delivery: First vessel expected by April 2026

This marks a major step for MDL in expanding its commercial shipbuilding portfolio and strengthening Indias shipbuilding exports.

Garden Reach Shipbuilders & Engineers (GRSE)

Export Clients:

Building vessels for Bangladesh and Germany.

Previously delivered Fast Patrol Vessels to Mauritius and Sri Lanka.

Expansion: Planning a green eld shipyard to focus on commercial and export orders

Commercial Focus: GRSE is exploring a green eld shipyard dedicated to commercial shipbuilding and

has signed MoUs with other shipyards like Swan Energy to boost non-defence production.

Infrastructure Growth: Acquired four dry docks from Syama Prasad Mookerjee Port to enhance ship

repair and construction capabilities 2.

These developments reflect Indias growing ambition to become a global hub for shipbuilding, aligning

with the Atmanirbhar Bharat initiative and tapping into international markets.

Hindustan Shipyard Limited (HSL)

Export Entry:

Repaired the Lay Vessel North Ocean LV105 for US-based McDermott.

Positioning itself as a hub for international ship repair.

Future Outlook: Expected to expand into export shipbuilding, especially support and auxiliary vessels.

Cochin Shipyard Limited (CSL)

Export Orders:

Recently secured an international contract to build two service vessels, with an option for four

more.

Signed a ship repair agreement with the US Navy, expanding its global footprint.

Diversi cation: The shipyard is moving beyond defence into commercial vessels, cruise ships,

yachts, and inland shipping

Focus: Diversifying into commercial and green vessels, including o shore support ships and hybrid tugs.

L&T Shipbuilding

Past Exports: Delivered high-speed patrol vessels to Vietnam.

Current Strategy:

Exploring new export opportunities due to capacity constraints in Korean and Japanese

shipyards.

Expansion: Investing 1,000 crore to expand its Kattupalli shipyard for commercial and export

builds.

Strategic Shift: L&T is exploring a return to commercial shipbuilding, driven by global demand and full

capacity at South Korean and Japanese shipyards 1.

International Partnerships: Engaging with potential partners in South Korea and Japan to tap into

export opportunities.

Government Support: Benefiting from Indias revamped shipbuilding financial assistance policy and a

25,000 crore Maritime Development Fund1.

Facility Expansion: Plans to invest 1,000 crore in its Kattupalli shipyard to modernize and reach full

production capacity.

National Outlook

India is aiming to become a global shipbuilding hub under the Maritime India Vision 2030 and Amrit

Kaal Vision 2047. While the above large shipyards are stated as examples, many mid-size private

shipyards are also gearing up for this Amrit Kaal Vision 2047.

Government initiatives like the Shipbuilding Financial Assistance Policy 2.0 and Maritime

Development Fund are boosting export competitiveness.

Inland Water Transport (IWT):

Our Commercial Marine division has a great opportunity unfolding in IWT in the foreseeable future. Commencing from power & NAVCOM package to equipment supplies, and supply of complete small electrical propulsion boats; we can look forward to a big business landscape. The summary of IWT business panorama is depicted below:

To create a country wide waterways network and to promote inland water transport in the country as an economical, environment friendly supplementary mode of transport to rail and road, 111 inland waterways have been planned and many are under execution stage. The Inland Water Transport (IWT) mode is widely recognized as a fuel efficient, environment friendly and cost effective mode, especially for bulk goods, over dimensional cargo and hazardous goods. The primary requirement of making this mode commercially viable is development of IWT infrastructure (fairway, terminals and NAV COM) and at the same time creating and enabling environment for augmentation of IWT eet, primarily by the private sector. Keeping in view that India has a coastline of 7,500km, and In Land Waterways (ILW) potential of over 20,000 kms; ship building and ship repair have been recognised as key sectors under Make In India (MII) initiative. We have started receiving orders from the projects under IWT.

2. Repair and Maintenance Services

With the growing ship repair and technical services sector, our services business of marine and defence sector also continues to be healthy and expected to grow along with the buoyant business scenario. Our navigation and Communication services business also grows in sync with the growth of ship repair and technical services opportunity.

We have over 30 types of electrical / electronic equipment approved by Govt of India (DGQA) and is growing further. We offer Annual Maintenance Contracts (AMC) and Rate Repair Contracts (RRC) for all our equipment. MEIL has branch o ces in 12 locations, mostly around the coast, for providing water front support to our customers. These AMC/ RRC provide a parallel sustained derivative business stream for us.

3. New Business Endeavours:

(a) Marine Domain Awareness Solutions:

Maritime domain awareness solutions include an array of products and services from port management solutions, to vessel monitoring services etc. and ensure maritime safety using advanced vessel tra c systems to monitor activities at sea.

A Vessel Tra c System (VTS) is a service recommended by the IMO and IALA, which is implemented by a competent authority and designed to improve the safety and efficiency of vessel tra c and protect the environment. The service shall have the capability to interact with the tra c and respond to tra c situations developing in the vessel tra c service area. An advanced Vessel Tra c System incorporates various means of monitoring and surveillance sensors. such as, Radar, AIS. Camera. Radio communication, Meteorological instrument etc. to provide a real-time situational awareness to the VTS Operator to enable safe and efficient tra c management within its area of responsibility. A Vessel Tra c Service is usually implemented by Competent Authorities to monitor the Ports. Harbours. Rivers. Busy Waterways, Coastal Areas, Oil and Gas Production Areas.

Marine Electricals offers two such systems to enable smooth transit into the seas namely:-

a) TITAN SENTINEL - A VTS for Solving Complex Issues of Large and Medium-Sized Ports

b) TITAN AVIPS - A VTS Designed for Small Ports

Marine solutions software is acquired from Xanatos, Canada with complete Transfer of Technology (ToT) and know-how. We have built further on this technology to offer customized solutions.

Since VTS is mandated by regulations for all ports and channels, a progressive upgrade of all harbor facilities in India is anticipated and therefore, this business segment is expected to grow faster.

b. E-Mobility solutions under brand ‘Bijlify:

We are passionate about renewable energy and electric vehicle technologies. We drive sustainable mobility by providing smart, robust and durable charging infrastructure and charging management software to electric vehicles under the umbrella of our subsidiary Company, Evigo Charge Pvt. Ltd.

Our Chargers provide full control over users energy usage by providing real time data on the EV Charging module. Our Charging solutions are compatible with every future electric vehicle. Having started our initiatives in 2018, we have the first mover advantages. Today, our products and software have stabilized and matured. We are fully geared with a competitive edge to take a lead in the e-Vehicle charging market.

4. Business Domain Expansion: Marine Electricals has taken timely steps for horizontal and vertical expansions into related elds for better benefits at lower risk such as:

Broadened Industrial Customer Base: Datacenters, Steel, Cement, Chemical, Pharma and Automobile industries, High rise buildings using own patented solutions for LV (MEcubE3), MV (MEpoweR3), Busduct solution etc.

Geographical Expansion in Industrials

Expanding in South India with an R&D center in Bangalore.

Exploring acquisition opportunities to enter North & Eastern India

Metro Rails: Electrical Products and Sensors

Indian Railways: Electrical Equipment and Lights

Ports: Vehicle tra c management system, Port management systems for port operations

Electric Vehicles: Charging Stations for Fast Charging

Expanding Solution O erings in Marine

Exploring new businesses such as Small autonomous vessels and E-Ferries

Providing IPMS for commercial ships, working on expanding it to Naval Ships

Focusing on complete installation package for Naval Ships

Targeting to receive Service Contract for Degaussing System and Weapon Systems

5. Achieved Business Parameters: The Y-o-Y growth parameters of MEIL are outlined as below. As can be observed the growth trends of MEIL are following/ exceeding the growth trends of the sector.

(Amount in Lakhs)

			(Amount in Lakhs)
Year	Order Book*	Revenue/ Sales*	PBT*
2024-25	52,400.00	70.058.40	5,386.42
2023-24	60,100.00	53,372.69	3,780.96
2022-23	48,630.00	39,127.13	2,636.54
2021-22	35,620.00	32,288.56	1,763.71
2020-21	44,100.00	19,987.37	1,085.82
2019-20	40,170.19	20,771.13	1,572.78
2018-19	18,786.00	32,323.03	1,728.33
2017-18	16,087.40	28,766.39	2,266.86

6. Competitive Scenario : MEIL has the first movers advantage. It has been able to resist and sustain the aggressive moves and postures of the new incomers in this business domain. The International players do pose a challenge but, MEIL product quality and market reputation are also at par with International brands. We make all endeavors to maintain and sustain international quality and maturity in our products, processes and product life cycle support.

7. Overall Business and Growth Strategy

Marine Electrical intends to be one of the top ten players in the global marine market. We will realise this by becoming a true life cycle management partner, combining two key roles as system integration partner and maintenance partner to all our customers and constantly focus on exceeding their expectations. And last but not least, we are dedicated to create smart and green solutions at a competitive cost of ownership.

Marine Electricals will provide high quality Industrial solutions for LV, MV & Automation addressing requirements of diverse customers thru superior technology & manufacturing standards. We aspire to take leadership position in Western region of India.

A focus on power plants, the automotive industry, pharmaceuticals, chemicals and petrochemicals, the energy and environment market, pharmaceuticals, machine building, oil & gas, and the aircraft industry.

8. Safety and Environment Clearances Outlook

We continuously seek to improve safety and reliability at all our production facilities. Our production facilities have been awarded the ISO Certification for maintaining quality and environment management standards.

9. Statutory Compliance

The Company Secretary Cum Compliance Officer ensures compliance with SEBI Regulations and Listing

Agreement , Guidelines of Insider Trading and Companies Act 2013.

10. Internal Control Systems

The companys internal audit system has been continuously monitored and updated to ensure that assets are safeguarded, established regulations are complied with and pending issues are addressed promptly. The audit committee reviews reports presented by the internal auditors. The committee makes note of the audit observations and takes corrective actions, if necessary. It maintains constant dialogue with statutory and internal auditors to ensure that internal control systems are operating effectively

11. Return on Networth (Consolidated)

The return on networth for the financial year 2024-25 is 9.34 % as compared to 10.08 % for the financial year 2023-24.

12. Cautionary Statement

The management discussion and analysis report containing your companys objectives, projections, estimates and expectation may constitute certain statements, which are forward looking within the meaning of applicable laws and regulations. The statements in this management discussion and analysis report could differ materially from those expressed or implied. Important factors that could make a difference to the companys operation include raw material availability and prices, cyclical demand and pricing in the companys principal markets, changes in the governmental regulations, tax regimes, forex markets, economic developments within India and the countries with which the company conducts business and other incidental factors.