Rappid Valves India Ltd Management Discussions

Annexure D

INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Industrial Valves Market is estimated to reach US$116.3 billion by 2030, growing at a CAGR of 5.6% during the forecast period 2024-2030. Industrial valves are mechanical devices that control the flow and pressure of a fluid within a system or process. It is available in different types such as polypropylene-based valves, cryogenic valves and plug valves. Electrochemical protection is used in valves to prevent corrosion.

The widespread adaptation of industrial valves is ideal for upgrading production lines with customized features to increase productivity. The chemical industry is widely adopting industrial valves for upgrading pipeline infrastructures. In September 2022, MOOG Inc. launched the X700 Series Servo Cartridge valves that can be used in the industrial electrohydraulic flow control system.

The Industrial Valves Market is experiencing steady growth globally, driven by factors such as rapid industrialization, increasing demand from various sectors, and technological advancements. Valves play a crucial role in regulating the flow of fluids and gases in industrial processes, making them indispensable components across diverse industries like oil and gas, water and wastewater treatment, power generation, chemical, and pharmaceutical. Moreover, adoption of smart valves equipped with sensors and actuators for enhanced monitoring and control, the rising focus on energy efficiency and sustainability, and the emergence of digitalization and IoT-enabled valve solutions for remote monitoring and predictive maintenance are key trends and developments in the Industrial Valves Market. Additionally, there is a growing emphasis on valve customization to meet specific industrial requirements and stringent regulatory standards concerning safety and environmental protection.

Market Size & Growth Projections

Source	Base Year	Forecast Period	CAGR	Forecasted Market Size
Global Market Insights	2024: $75.9 B	2025-2034	6.6%	$142.6 B by 2034
Grand View Research	2023: $76.2 B	2024-2030	4.4%	$100.9 B by 2030
Mordor Intelligence	2025: $74.3 B	2025-2030	4.52%	$92.5 B by 2030
Business Research Co.	2024: $99.8 B ^ 2025: $102.6 B	2025-2029	3.7%	$118.6 B by 2029
Research Nester	2024: $98.6 B	2025-2034	5.4%	$165.3 B by 2034
Future Market Insights	2025: $85.0 B	2025-2035	4.2%	$128.2 B by 2035
Fact.MR	2024: $78.3 B	2024-2034	4.7%	$123.9 B by 2034
Freedonia (demand-based)	?	to 2025	4.9% p.a.	$103 B by 2025

Key Drivers & Industry Dynamics

• Oil & gas expansion, energy infrastructure upgrades, and rising LNG and hydrogen projects are consistently cited as strong growth catalysts.

• Infrastructure and urbanization, especially in emerging economies like India (with policies like Gati Shakti and Make in India), are fueling demand in power, water, and transportation sectors.

• Technological innovations like smart valves, IIoT-enabled sensors, and AI-driven predictive maintenance are gaining traction.

• Environmental and regulatory trends?including emissions control, water scarcity initiatives, and automation mandates?are further boosting demand.

Regional Hotspots

• Asia-Pacific emerges as the largest and fastest-growing market in several reports.

• Middle East & Africa show rapid expansion, particularly in oil, gas, and desalination.

• Latin America is projected to reach ~$9.1 B by 2030, driven by modernization and automation.

Recent Market Performance (2024-2025)

• Emerson, a key player, reported a ~4% increase in sales from its valves and regulators unit in early- 2025, signaling strong underlying demand.

• Despite broader manufacturing headwinds tied to trade tensions, demand for industrial components like valves remains resilient.

Summary Insights

• The global industrial valves market is robust and growing steadily?expected to expand from around $75-100 B today to $100-165 B by 2030-2035, depending on the time frame and methodology.

• CAGR estimates vary from ~3.7% to 6.6%, reflecting differences in projection scope and assumptions.

• Growth is multi-faceted, supported by energy sector expansion, urban infrastructure needs, regional investment, smart tech adoption, and regulatory pressures.

• Asia-Pacific and the Middle East lead adoption, while Latin America and other emerging regions are becoming important growth zones.

• Recent company-level results, such as those from Emerson, underscore a continued demand trend even amid economic volatility.

Drivers of Demand in India

a) Shipbuilding & Repairs

• Indias Maritime India Vision 2030 and Amrit Kaal Vision 2047 aim to revitalize domestic shipbuilding and repair infrastructure?unlocking potential worth ~$237 bn by 2047.

• Significant activity includes:

o Cochin Shipyard Ltd, Indias largest, now servicing large oil tankers, naval vessels, and performing major overhauls, including the INS Vikramaditya in 2024. o A deep-water shipyard in Poovar (Kerala) is being developed for ultra-large vessel construction/repairs, attracting both domestic and international investments.

b) Blue Economy & Coastal Investments

Tamil Nadu, with Indias second-longest coastline, is aggressively pursuing its Blue Economy strategy? investing in shipbuilding, marine transport, and associated logistics. A ^25,000 cr Maritime Development Fund and enhanced financial aid policy strengthen this outlook.

c) Offshore Energy & Inland Waterways

While direct marine valve applications are growing offshore, Indias inland waterways and marine services sector (e.g., recent INR 73 CR order for dredging) also create demand for specialized marine-engineering components.

Company Overview

Rappid Valves (India) Limited, known by its brand name "Rappid", is an engineering company specializing in the manufacturing of high-quality industrial valves. Established in 2002, the company began as Rapid Valves (India) Private Limited and was renamed in 2009 as Rappid Valves (India) Private Limited. The Registered Office is located in Palghar (East), Thane, Maharashtra, covering an area of over 32,000 sq. ft.

Rappid offers a wide range of valves including Ball, Gate, Globe, Butterfly, Check, Double Block, Strainer, and Marine Valves, available in sizes from 15mm to 600mm, made from both ferrous and non-ferrous materials. The company has also introduced specialized products such as Top Entry Ball Valves, Trunnion Mounted Valves, Quick Closing Valves, and Automated Valves. Its manufacturing unit is equipped with modern machinery including CNC machines, VMCs, test benches, and EOT cranes.

Rappid serves critical sectors like Hydrocarbon, Marine, Shipbuilding, Chemical, Power, Distillery, Brewery, Mining, and General Industry, and exports to global markets. The company is certified with IBR,

ISO 9001:2015, ISO 14001:2018, ISO 45001:2018, and API 607 fire-safe design standards, along with marine type approvals. Known for its focus on quality, design innovation, and customer service, Rappid has built a strong reputation for delivering reliable flow control solutions tailored to industry needs.

OPPORTUNITIES AND THREATS:

Opportunities:

The marine valve industry currently has a limited number of players, presenting a strong opportunity for the company to position itself as a market leader in this niche segment. By leveraging its technical expertise, product quality, and existing client base, the company can expand its presence and build long-term relationships with key players in the marine, shipbuilding, and related industries. Additionally, there is significant scope to bring greater stability in profitability through consistent production planning, optimized resource utilization, and strong cost control measures. Another key opportunity lies in sector portfolio diversification. By tapping into adjacent sectors such as oil & gas, water treatment, chemicals, and power, the company can reduce dependency on a single industry and create multiple revenue streams, thus improving resilience against market fluctuations.

Segment	Valve Types & Focus
Shipbuilding & Repairs	High-durability, corrosion-resistant valves for ballasting, cooling, and fluid systems?often to naval/military grade standards.
^Offshore & Subsea	Smart, IoT-enabled actuated valves, designed for remote monitoring, predictive maintenance, and environment compliance.
Retrofitting & Upgrades	Replacement valves for existing fleets?offering modern efficiency, regulatory compliance, and automation upgrades.

Localized manufacturing is increasingly sought after including alloys, coatings, and designs suited for marine corrosion, temperature, and pressure gradients

Threats:

Despite the opportunities, there are certain external threats that the company must monitor closely. One of the major challenges is the volatility in metal prices, which can significantly impact production costs and overall profitability. To mitigate this, it is important for the company to maintain adequate raw material inventory and build strong supplier relationships to navigate sudden market fluctuations. Additionally, changes in government regulations or trade policies, especially those related to manufacturing, export- import, or environment, can influence business operations and compliance costs. Another growing concern is the scarce availability of marine valves in the domestic market, which can push competitors to import from other countries, increasing price-based competition and affecting the companys market share.

Overall, while the company has notable strengths and a solid foundation to grow, it is essential to proactively address these external threats and internal challenges. A strategic focus on opportunity exploitation, risk mitigation, and operational efficiency will ensure sustainable growth and long-term success in the competitive industrial valves market.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE:

We are currently operating exclusively within the manufacturing, importing, exporting, trading and consulting for all types of valves and fittings, from which we derive 100% of our revenues.

FUTURE OUTLOOK:

The future outlook for Rappid Valves appears exceptionally promising, driven by a series of strategic initiatives and market opportunities. Our recent partnerships with esteemed customers such as JSW Shipping, Kirloskar Pneumatic, IFFCO, and BHEL underscore our growing presence in the industry. The successful completion of Type Approval Tests and the subsequent awarding of Type Approval Certificates for various marine valves position us favorably within the marine sector, significantly enhancing our sales potential with shipyards and Marine OEMs.

Rappid Valves is committed to continuous evolution, adapting to changing industry trends by upgrading existing valve designs and developing innovative new products. Our ongoing infrastructure expansion ensures that we are well-equipped to meet the demands of a rapidly growing market. With the marine shipbuilding industry poised for tremendous growth, we are well-positioned to secure substantial business from multiple upcoming projects across various PSU shipyards. Our status as a registered vendor with prominent shipyards such as HSL, LNT Shipbuilding, MDL, CSL, GSL, and Hooghly Shipyard further solidifies our competitive edge.

In addition to our shipbuilding endeavours, Rappid Valves is actively pursuing orders from renewable energy companies for upcoming CNG projects, which will contribute significantly to our growth narrative. The market indicators are overwhelmingly positive, with the shipbuilding industry projected to remain booked for the next 8-10 years. The CBG business is emerging as the next big opportunity in India, and Rappid has already established a foothold in this sector, securing valuable contracts.

Moreover, our collaborations with major steel producers such as JSPL and Bokaro Steel reflect our steady growth in the steel industry. We are also focused on long-term export contracts, with plans to commence contract manufacturing for our export customers by November 2025. This initiative will not only expand our product portfolio but also significantly scale up our revenue.

Overall, the outlook for Rappid Valves is extremely bullish. We are confident that the coming times will validate our strategic vision and commitment to excellence in the marine valve industry and beyond. As we continue to innovate and expand, Rappid Valves is poised to make a lasting impact in the markets we serve.

RISKS AND CONCERNS:

The company faces a potential risk due to its high dependence on a single promoter for key decision-making across strategic, operational, and financial areas. While the promoters leadership and vision have significantly contributed to the companys growth, such concentrated control may limit the incorporation of diverse perspectives in critical decision-making processes. This could affect the companys ability to adapt swiftly to industry changes, respond to complex challenges, or plan for long-term succession. In a sector like manufacturing, where flexibility, innovation, and collaborative leadership are essential, this dependency poses a governance and continuity risk that should be monitored and addressed over time.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

The Companys internal control systems are commensurate with the nature of its business and the size and complexity of operations. These systems are routinely tested and certified by Statutory as well as Internal Auditor and cover all offices, factories and key business areas. Periodical reports and significant audit observations and follow-up actions thereon are reported to the Audit Committee. The Audit Committee is headed by an Independent Director, and this ensures independence of function and transparency of the process of supervision and oversight. The Audit Committee reviews the adequacy and effectiveness of the Companys internal control environment and monitors the implementation of audit recommendations, including those relating to strengthening of the Companys risk management policies and systems. The Company conducts its business with integrity and high standard of ethical behavior and in compliance with the laws and regulations that govern its business.

DISCLOSURE ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Please refer to the Boards Report.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCE/ INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

The Company continues to lay emphasis on developing and facilitating optimum human performance. Performance management was the key word for the Company this year. The Company has always strived to be a Progressive Employer by continuously focusing on creating an engaging atmosphere for our Employees to learn, contribute and grow. We believe in timely compliance with all statutory payments especially related to employees. Our POSH Policy ensures a safe environment, dignity and respect for all our employees irrespective of gender, religion, caste etc.

SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS COMPARED TO PREVIOUS YEAR:

Sr. . No.	Particulars	Year 202324	Year 2024-25 (%/Times)	Explanation for change
1	Debtors Turnover	4.39	2.71	Due to sales in Last Quarter
? 2	Inventory Turnover	3.15	3.22	No Substantial changes
3	Interest Coverage Ratio	4.94	8.36	Due to decrease in Loan Closure
4	Current Ratio	1.46	3.38	Increase in working Capital
5	Debt Equity Ratio	0.89	0.19	Due to decrease in Loan Closure
6	Operating Profit Margin (%)	18.97%	17.96%	No Substantial changes
7	Net Profit Margin	11.30%	11.58%	No Substantial changes

FORWARD-LOOKING STATEMENT:

Certain statements made in the Management Discussion and Analysis Report relating to the Companys objectives, projections, outlook, expectations, estimates, and others may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations, whether expressed or implied. Several factors could make a significant difference to our operations. These include climatic and economic conditions affecting demand and supply, government regulations and taxation, any epidemic or pandemic, and natural calamities over which we do not have any direct/indirect control.

As India stands at the cusp of a new industrial growth cycle, the valve industry is entering one of its most promising phases in decades. Government-led initiatives such as Jal Jeevan Mission, Gati Shakti, Maritime India Vision 2030, and the rapid expansion of city gas distribution networks are creating unprecedented demand for reliable and technologically advanced flow-control solutions.

At Rappid Valves, we firmly believe that India will not only be among the fastest-growing valve markets globally but also evolve into a hub for innovation, manufacturing excellence, and exports. Rising investments in water infrastructure, energy transition projects including LNG and hydrogen, offshore and marine development, and digitalized process industries are all converging to drive sustained demand for smart, durable, and environmentally compliant valve systems.

Looking forward, we see three defining themes shaping the industry:

Sustainability & Compliance - valves engineered for zero leakage, energy efficiency, and alignment with stricter emission norms.

Smart Automation - IIoT-enabled, sensor-integrated valves that support predictive maintenance and operational reliability.

Localization with Global Standards - India-made valves built to international benchmarks, serving both domestic and global markets.

?Rappid Valves is fully committed to aligning with this transformation by scaling capacity, deepening R&D investments, and forging strategic partnerships with EPCs, utilities, and shipyards. We see ourselves not only as manufacturers but as long-term solution partners contributing to Indias infrastructure and industrial growth story.

The future of Indias valve industry is robust, resilient, and full of opportunity?and Rappid Valves intends to be at the forefront of this journey.

For Rappid Valves (India) Limited.

Sd/-

Gaurav Vijay Dalal

Managing Director

DIN:00494466

Date: - 01/09/2025

Place: - Palghar