About Company

• The Company was incorporated as ‘Gala Precision Engineering Pvt. Ltd’ in February 23, 2009. The name of the Company was subsequently changed to ‘Gala Precision Engineering Ltd’, upon conversion into a public company, in October 2023. The company is a precision component manufacturer of technical springs like disc & strip springs (“DSS”) including wedge lock washers; coil & spiral springs (“CSS”) and special fastening solution (“SFS”) supplying to original equipment manufacturers (“OEMs”), Tier 1 players and channel partners.
• The company had a share of ~2% of the global DSS & WLW market, as of CY2023. The company is a key disc springs manufacturer in domestic market and has ~10% market share in the Indian disc springs market.
• The company has a significant presence in the DSS market for renewable industry with ~70% share in the domestic market and ~3% share in the global market.
• The company operates from 2 manufacturing facilities located in Wada, Palghar, Maharashtra. The manufacturing facilities are certified by ISO 9001:2015 and IATF16949 from which the company serves both domestic and international customers.
• As of March 31, 2024, the company has an annual production capacity of 246.46 million units of springs and washers and 0.42 million fasteners. Further, the company is setting up new manufacturing facility at SIPCOT, Sriperumbuddur, Tamil Nadu for developing various high tensile fasteners and bolts.
• The company exports its products to 25+ countries to global clientele exceeding 175 customers in major markets such as Germany, Denmark, China, Italy, Brazil, USA, Sweden, Switzerland. Exports contributed 37.53% to total sales as of March 31, 2024.
• The company has long-standing relationships with OEMs, Tier 1 players and channel partners customers ranging from 4 years to more than 15 years.
• The company has developed and delivering over 750 stock keeping units of products to meet customer requirements. Further, it has developed more than 200 products for different technical springs and high tensile fasteners, over the last 5 years.
• The company’s total income grew CAGR of 17.53% between FY2022-2024. The total income increased to ? 204.38 Cr in FY2024 from ? 147.96 Cr in FY 2022. The company’s gross profit remained consistent at 59.26 % in FY 2022 to 59.15 % in FY 2024.

Strengths

Competitive Strength 

• Well established manufacturer of precision engineering components with diversified product portfolio and diverse market
• Long-standing customer relationships with both Indian and global OEM and Tier 1 players
• Well-equipped manufacturing facilities along with in-house design and other capabilities which offer scale, flexibility, & comprehensive solutions
• Experienced management team supported by large, diverse and skilled work force
• Track record of consistent financial growth and performance characterized by operational efficiency and high repeat business

 Business Strategies 

• Strengthening core capabilities in precision engineering for sustainability
• Moving up the value chain from niche markets to large addressable markets
• Leverage in-house design and development capabilities to grow product offerings and capitalize on future trends
• Strengthen relationships with the existing customers and expand customer base
• Expand manufacturing capacity at the existing facilities and set-up additional strategically located facility

Company Promoters

Company Financials

Gala Precision Engineering Limited Financial Information (Restated)

Gala Precision Engineering Limited's revenue increased by 22% and profit after tax (PAT) dropped by -8% between the financial year ending with March 31, 2024 and March 31, 2023.

Objects of the Issue

The company proposes to utilise the Net Proceeds towards funding the following objects:

1. Setting up a new facility at Vallam-Vadagal, SIPCOT, Sriperumbuddur, Tamil Nadu for manufacturing high tensile fasteners and hex bolts;
2. Funding capital expenditure requirements towards purchase of equipment, plant and machinery at Wada, Palghar, Maharashtra;
3. Repayment/ prepayment, in full or part, of certain borrowings availed by the company; and
4. General corporate purposes.