About Company

• KRN Heat Exchanger and Refrigeration Ltd (“KRN”) was incorporated on August 25, 2017. They are the in the business of manufacturing aluminium and copper fin – copper tube condenser and evaporator coils used by OEMs in heating, ventilation, air conditioning, and refrigeration (“HVAC&R”) industry.

• Their coils are used in heating equipment, ventilation equipment, and cooling or air-conditioning equipment used in domestic, commercial, and industrial HVAC systems to control the temperature, humidity, and purity of the air.

• Company’s product portfolio includes evaporator coils, condenser coils, fluid and steam coils, condensing units, copper headers parts, sheet metal parts.

• Their entire manufacturing operations are carried out at their consolidated manufacturing facility comprising 2 industrial plots situated in the RIICO Industrial Area, Neemrana, Rajasthan.

• To expand the business of their company and to reap the benefits of forward integration, KRN has incorporated a wholly owned subsidiary company, namely KRN HVAC Products Pvt Ltd to increase value-added products in their existing portfolio.

• KRN HVAC Products Pvt Ltd will focus on manufacturing certain types of heat exchangers that are currently not manufactured by the company.

• In Financial Year ended on March 31, 2024, they had a customer base of over 115 customers, diversified across geographies.

• KRN is dependent on and derive 33.34%, 32.85% and 32.28% of their revenue for the FY2024, FY2023 and FY2022 from the single customer namely Daikin Airconditioning India Pvt Ltd and further they derive 72.31%, 70.87% and 75.82% of their revenue from the Top 10 key customers for the FY2024, FY2023 and FY2022 respectively.

• Over the last 3 Financial Years, their revenue from operations has increased at a CAGR of 25.46% out of which their export sales have increased at a CAGR of 44.71%.

Strengths

Competitive Strength 

• Promoters exhibit strong leadership and are supported by highly experienced senior management;

• Long-standing business relationships with leading clientele;

• Effective quality control checks;

• Consistent financial performance;

• Established Manufacturing facility.

Business Strategies 

• Expanding the customer base;

• Focus on increasing operational efficiencies to improve returns;

• Enhancing existing products base and product quality;

• Regular Improvement in product design and development;

• Increasing the global footprint and augmenting growth in current geographies.

Company Promoters

Company Financials

KRN Heat Exchanger and Refrigeration Limited's revenue increased by 25.47% and profit after tax (PAT) rose by 20.9% between the financial year ending with March 31, 2024 and March 31, 2023.

Objects of the Issue

The net proceed from fresh issue is to be utilized for the following;

• Invest in the wholly owned subsidiary, KRN HVAC Products Pvt Ltd for setting up a new manufacturing facility at Neemrana, Alwar, Rajasthan, and
• General corporate purposes.