United Heat Transfer Introduction

United Heat Transfer Limited is an engineering manufacturing company based in India. The company specializes in producing a variety of heat exchange equipment, including shell and tube heat exchangers, air-cooled heat exchangers, marine heat exchangers, moisture separators, automatic backflush filters, pressure vessels, and process flow skids. These products are essential for various applications in industries such as automotive, maritime, and heavy machinery

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Brief about United Heat Transfer

Summary of the business of United Heat Transfer

Company is engaged in the manufacture of a range of shell and tube heat exchangers, air cooled heat exchangers, pressure vessels and process flow skids equipment’s which are used as critical equipment’s for petrol and diesel engines, railway engines, maritime engines, cruse and cargo ships, ferries, pleasure boats, marine diesels, mining trucks, mega- yachts, heavy engines, fishing boats, heavy trucks, freighters, trawlers, heavy haulages, power gen sets, super tankers, off highway engines etc. since 1995.

History of United Heat Transfer

Company was originally incorporated as United Heat Transfers Private Limited, on January 27th, 1995 under the provisions of the Companies Act, 1956 vide Certificate of Incorporation issued by the Registrar of Companies, Mumbai, Maharashtra. The name of the company was subsequently changed to United Heat Transfer Private Limited dated November 13th, 2009 vide Certificate from name change issued by the Registrar of Companies, Mumbai, Maharashtra. Subsequently, Company was converted into a public limited company and the name of our Company was changed from “United Heat Transfer Private Limited” to “United Heat Transfer Limited” vide Special Resolution dated February 27th, 2024. The status of the Company was changed to public limited and the fresh certificate of incorporation consequent to conversion was issued on June 12th, 2024 by the Registrar of Companies, Mumbai, Maharashtra.

Promoters & Board of Directors of United Heat Transfer

• The promoters of our Company are Mr. Yogesh Vishwanath Patil, Mr. Vivek Vishwanath Patil, Ms. Durva Yogesh Patil and Mr. Shatanik Vivek Patil.

Board of directors of United Heat Transfer

Share Holding pattern of United Heat Transfer

Strength of United Heat Transfer

• Well Experienced Management Team
• Integrated Manufacturing Facilities
• Vendor Registrations
• Long Standing Relation with Customers
• Strategic Location of Unit

Industry Outlook

HEAT EXCHANGER – INDUSTRY SCENARIO

Nominal GDP or GDP at Current Prices in the year 2023-24 is estimated at Rs. 293.90 lakh crores (US$ 3.52 trillion), against the First Revised Estimates (FRE) of GDP for the year 2022-23 of Rs. 269.50 lakh crores (US$ 3.23 trillion).

According to the McKinsey Global Institute, India needs to boost its rate of employment growth and create 90 million non-farm jobs between 2023 and 2030 to increase productivity and economic growth. The net employment rate needs to grow by 1.5% per annum from 2023 to 2030 to achieve 8-8.5% GDP growth between 2023 and 2030. India’s current account deficit (CAD) narrowed to 1.2 per cent of GDP in the October-December quarter of FY24.

Exports fared remarkably well during the pandemic and aided recovery when all other growth engines were losing steam in terms of their contribution to GDP. Going forward, the contribution of merchandise exports may waver as several of India’s trade partners witness an economic slowdown. According to Mr. Piyush Goyal, Minister of Commerce and Industry, Consumer Affairs, Food, Public Distribution, and Textiles, Indian exports are expected to reach US$ 1 trillion by 2030.

Recent Developments

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India is primarily a domestic demand-driven economy, with consumption and investments contributing to 70% of the economic activity. With an improvement in the economic scenario and the Indian economy recovering from the COVID- 19 pandemic shock, several investments and developments have been made across various sectors of the economy. According to the World Bank, India must continue to prioritize lowering inequality while also putting growth-oriented policies into place to boost the economy. In view of this, there have been significant developments in the recent past.

India’s foreign exchange reserves stood at US$ 643.162 billion as of April 12, 2024, while the private equity-venture capital (PE-VC) sector received investments worth US$ 49.8 billion in 2023. Merchandise exports in March 2024 stood at US$ 41.68 billion. Additionally, In March 2024, the gross Goods and Services Tax (GST) stood at the second-highest monthly revenue collection at Rs.1.78 lakh crore (US$ 21.35 billion). Cumulative FDI equity inflows to India between April 2000- December 2023 reached US$ 971.52 billion. In February 2024, the overall Index of Industrial Production (IIP) stood at 147.2, with the mining, manufacturing, and electricity sectors recording indices of 139.6, 144.5 and 187.1, respectively. India’s retail inflation, based on the Consumer Price Index (CPI), stood at 5.69% in December 2023. Foreign Portfolio Investment (FPI) withdrew a net amount of Rs 38,158 crore from equities in 2024 (until June 10, 2024). Furthermore, the wheat procurement during RMS 2023-24 (till May) was estimated to be 262 lakh metric tonnes (LMT) and the rice procured in KMS 2023-24 was 385 LMT. The combined stock position of wheat and rice in the Central Pool is over 579 LMT (Wheat 312 LMT and Rice 267 LMT).

The Road Ahead

In the second quarter of FY24, the growth momentum of the first quarter was sustained, and high-frequency indicators (HFIs) performed well in July and August of 2023. India’s comparatively strong position in the external sector reflects the country’s positive outlook for economic growth and rising employment rates. India ranked 5th in foreign direct investment inflows among the developed and developing nations listed for the first quarter of 2022.

India’s economic story during the first half of the current financial year highlighted the unwavering support the government gave to its capital expenditure, which, in 2023-24, stood 37.4% higher than the same period last year. In the budget of 2023-24, capital expenditure took lead by steeply increasing the capital expenditure outlay by 37.4 % in BE 2023-24 to Rs.10 lakh crore (US$ 120.12 billion) over Rs. 7.28 lakh crore (US$ 87.45 billion) in RE 2022-23. The ratio of revenue expenditure to capital outlay increased by 1.2% in the current year, signalling a clear change in favour of higher-quality spending. Stronger revenue generation because of improved tax compliance, increased profitability of the company, and increasing economic activity also contributed to rising capital spending levels. In February 2024, the Finance Ministry announced the total expenditure in Interim 2024-25 estimated at Rs. 47,65,768 crore (US$ 571.64 billion) of which total capital expenditure is Rs. 11,11,111 crore (US$ 133.27 billion).
Since India’s resilient growth despite the global pandemic, India’s exports climbed at the second-highest rate with a year- over-year (YoY) growth of 8.39% in merchandise exports and a 29.82% growth in service exports till April 2023. With a reduction in port congestion, supply networks are being restored. The CPI-C inflation reduction from June 2022 already reflects the impact. In September 2023 (Provisional), CPI-C inflation was 5.02%, down from 7.01% in June 2022. With a proactive set of administrative actions by the government, flexible monetary policy, and a softening of global commodity prices and supply-chain bottlenecks, inflationary pressures in India look to be on the decline overall.

Heat Exchanger Market Outlook – 2030

The global heat exchanger market size was valued at $16.7 billion in 2020, and is projected to reach $28.3 billion by 2030, growing at a CAGR of 5.5% from 2020 to 2030. A heat exchanger is a device that facilitates the process of heat exchange between two fluids that are at different temperatures. Heat exchangers are used in many engineering applications, such as refrigeration, heating and air-conditioning systems, power plants, chemical processing systems, food processing systems, automobile radiators, and waste heat recovery units. In addition, air preheaters, economizers, evaporators, superheaters, condensers, and cooling towers used in a power plant are a few examples of heat exchangers. Moreover, heat exchangers are an enabling technology for efficient power generation with a closed, recuperated Brayton cycle, using supercritical carbon dioxide (sCO2) as the working fluid.

Heat exchangers influence the overall system efficiency and system size. Heat exchanger designs must balance between heat exchanger effectiveness and pressure drop to achieve the desired tradeoff between system efficiency and system size.

This tradeoff between system efficiency and system size is expected to vary with each energy conversion system application.
Heat exchangers are highly used in chemical, petrochemical, oil & gas, HVACR, food & beverages, and power generation. In addition, rise in demand for product and services by these industries across the globe is predicted to act as a major driving factor for the market. Moreover, rise in demand for heat exchanger in the automotive industry is also expected to act as a major factor for the heat exchanger market growth.
The heat exchanger industry is segmented on the basis of type, end-user industry, material of construction, and region. On the basis of type, the market is categorized into shell and tube, plate and frame, air-cooled, microchannel heat exchanger, and others. On the basis of end-user industry, it is divided into chemical, petrochemical, oil & gas, HVACR, food & beverages, power generation, and others. On the basis of material of construction, it is classified into carbon steel, stainless steel, nickel, and others. The others segment further includes, nickel alloys, titanium, copper, and molybdenum.

DEFENSE MANUFACTURING INDUSTRY IN INDIA

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India is one of the strongest military forces in the world and holds a place of strategic importance for the Indian government. The top three largest market segments of the Indian defence sector are military fixed wing, naval vessels and surface combatants, and missiles and missile defence systems. Military rotorcraft, submarines, artillery, tactical communications, electronic warfare, and military land vehicles are some of the other well-known segments. Some of the major defence manufacturing companies in India are Bharat Earth Movers Ltd. (BEML), Bharat Electronics Ltd. (BEL), and Hindustan Aeronautics Ltd. (HAL).

The Indian defence manufacturing industry is a significant sector of the economy. The industry is likely to accelerate with rising concerns about national security. Demand for defence equipment in India has been growing due to the ongoing territorial disputes with Pakistan and China over the ownership of the Northern State of Kashmir and the North Eastern State of Arunachal Pradesh, respectively. Over the last five years, India has been ranked among the top importers of defence equipment to gain technological advantages over rival countries such as China and Pakistan. To modernize its armed forces and reduce dependency on external dependence for defence procurement, several initiatives have been taken by the government to encourage ‘Make in India’ activities via policy support initiatives.

India’s defence budget of US$ 74.7 billion ranked fourth highest globally in 2024.India has the world’s fourth largest defence expenditure, as of 2022, and has set a target of US$ 6.02 billion (Rs. 50,000 crore) worth of annual defence exports by 2028-29.

In the Interim Budget 2024-25, US$ 2.9 billion (Rs. 23,855 crore) was allocated to DRDO, while a corpus of US$ 12.0 billion (Rs. 1 lakh crore) was earmarked for Deep Tech, offering long-term loans to tech-savvy companies to foster innovation in defence technologies within India.
As per the Union Budget 2022-23, 25% of the defence R&D budget has been earmarked for private industry and start- ups which will pave the way for the innovation of new defence technologies in India.

Till April 2023, a total of 606 industrial licences were issued to 369 companies operating in the defence sector. Defence exports rose 240% over five years in FY23, to US$ 1.9 billion (Rs. 15,918.16 crore). India now exports to over 85 countries due to collaborative efforts.
Till October 2022, a total of 595 Industrial Licences have been issued to 366 companies operating in Defence Sector. Defence exports grew by 334% in the last five years; India now exports to over 75 countries due to collaborative efforts.

Market Size

According to the Global Power Index, the Indian defence sector ranks fourth in terms of firepower with a score of 0.0979 (with 0.0 being the perfect score). The Indian government has set the defence production target at US$ 25 billion by 2025 (including US$ 5 billion from exports by 2025). India is one of the world’s biggest defence spenders with a total outlay of US$ 74.8 billion (Rs. 6.21 lakh crore), accounting for 13.04% of the total budget and indicating an increase of 4.72% over the Budget of 2023-24 and 18.35% over the allocation for 2022-23. India’s military spending of US$ 81.4 billion ranked fourth highest in the world in 2022. This was up by 6% from 2021.

The value of defence production in the country crossed US$ 12 billion (Rs. 1 lakh crore) for the first time on the back of key reforms to spur growth in the sector that holds vast potential. The figure stood at US$ 13.1 billion (Rs.1,08,684 crore) in FY23 compared to US$ 11.4 billion (Rs. 94,845 crore) in FY22. The value of defence production in FY24 stood at US$ 5.6 billion (Rs. 46,175 crore) while the defence production by PSU’s stood at US$ 3.04 billion (Rs. 25,271 crore).
India’s defence import value stood at US$ 463 million for FY20 and US$ 469.5 million in FY21. India targets to export military hardware worth US$ 5 billion (Rs. 35,000 crore) in the next five years. As of 2019, India ranked 19th in the list of top defense exporters in the world by exporting defense products to 42 countries. Defense exports in the country stood at US$ 1.9 billion (Rs. 15,918.16 crore) in FY23.
Defense exports rose 240% over five years in FY23 and India now exports to over 85 countries due to collaborative efforts.

INDIA DIESEL GENERATOR MARKET ANALYSIS

India’s Diesel Generator Market size is expected to grow from USD 1.10 billion in 2023 to USD 1.42 billion by 2028, registering a CAGR of 5.20% during the forecast period (2023-2028).

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• Over the medium period, factors such as uninterrupted and reliable power supply and heavy deployment of DG (diesel generator) set in healthcare services and the IT sector are accountable for the market’s progress. Improvement in technology can lead to an upsurge in the market’s growth during the forecast period.
• On the other hand, the Indian diesel generator market may face hurdles in the near future due to the growing trend of renewable power generation, particularly in industries that have targeted reducing greenhouse gas emissions.
• Nevertheless, diesel generators are widely used as a prime and standby source in the manufacturing sector. India is predicted to be the global manufacturing hub by 2030 due to the efforts poured in by the Make in India program launched by the Government of India. Such developments are anticipated to create significant opportunities for the market.

India Diesel Generator Market Trends

The Commercial Segment is expected to dominate the market

• The commercial segment is expected to be the largest market during the forecast period due to the rapid growth in the service sector, which is expected to rise even more during the forecast period. Diesel generators are mainly used in the commercial sector to have an uninterrupted power supply during business hours.
• The service sector includes hospitals, hotels, restaurants, IT and telecommunication centers, banking, and insurance. The gross value added from finance, real estate, and professional services had the highest share in India in the fiscal year 2022. With 53 percent overall, the service sectors made up a large chunk of GVA for the country that year. One of the fastest-growing sectors in services is the IT and business services market. According to India Brand Equity Foundation, the Government of India, the IT and business services market is expected to cross USD 19.93 billion by 2025.
• In March 2023, NTT planned to open six data centers in India over the next three months, with three more planned. The corporation will open six new data centers, bringing the total number of data centers in operation in the country to 11. These additional data centers will be built in Mumbai’s Airoli and Mahape, as well as Bengaluru and Chennai.
• Diesel generators are heavily deployed in healthcare services, particularly hospitals, to avoid intermittent power supply. The Government of India plans to increase public health spending to 2.5% of the country’s GDP by 2025.
• All these developments are expected to foster growth in the diesel generator market of India in the coming years.

India Diesel Generator Industry Overview

The Indian diesel generator market is moderately fragmented. Some of the key players in the market (in no order) include Honda India Power Products Ltd, Yamaha Motor Co. Ltd., Mitsubishi Heavy Industries Ltd, Mahindra & Mahindra Limited, Kirloskar Oil Engines Ltd., and others.

India Diesel Generator Market Leaders

• Honda India Power Products Ltd.
• Yamaha Motor Co Ltd.
• Mitsubishi Heavy Industries Ltd.
• Mahindra & Mahindra Ltd.
• Kirloskar Oil Engines Ltd.

India Diesel Generator Industry Segmentation

A diesel generator is a device that combines a diesel engine and an electric generator to generate electricity. This is an example of an engine generator. A diesel compression-ignition engine is typically built to run on diesel fuel, but specific models are also designed to run on other liquid fuels or natural gas.

The India diesel generator market is segmented by power output, application, end user, and ratings. The market is segmented by power output into portable, inverter, industrial, and induction generators. The market is segmented by application into standby, prime power, continuous, and peak shaving. By end-user, the market is segmented into residential, commercial, and industrial. Ratings segment the market into 0-75 kVA, 75-375 kVA, and Above 375 kVA.

Business Data of United Heat Transfer

Verticals of United Heat Transfer

• Shell and Tube Heat Exchanger (Oil Cooler, Inter Cooler, After Cooler)
• Extended Surface Heat Exchangers (Plate Fin Type)
• Process Flow skids/ Custom Made Packages
• Engine Jacket Water Heat Exchanger with Expansion Tank (Header Tank Heat Exchangers)
• Charged Air Coolers (for diesel / petrol engines / Generators)
• Marine Heat Exchanger
• Moisture separators
• Automatic Backflush Filters
• Pressure vessels

Product wise break-up of United Heat Transfer

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Revenue contribution from Geography presence of United Heat Transfer

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Customer concentration of United Heat Transfer

• Top 5 customers contribute 79.25%, 67.65%, 55.28% and 63.48% of our total sales for the period ended on July 31st, 2024 and for the financials year ended on March 31st, 2024, 2023 and 2022 respectively.

Supplier concentration of United Heat Transfer

• Top 10 suppliers contribute 74.04%, 63.40%, 36.46% and 39.86% of our total purchases for the period ended July 31st, 2024 and for the year ended on March 31st, 2024, 2023 and 2022 respectively.

Machinery/Plants/Factory of United Heat Transfer

Capacity Utilisation of United Heat Transfer

Customers

Competition

Believe that the principal factors affecting competition in our business include product design capability, vendor registration, client relationships, reputation, market focus and the relative quality, price of the products and any ancillary service provided. We face competition from various domestic and other players in the market. competitors in the regional level are even from the unorganized sector of the industry. intend to continue competing vigorously to capture more market share and manage our growth in an optimal way. expect that commitment to quality, past record of timely execution and transparency will provide us with an edge over our competitors. We deal with all companies whose conditions relating to quality, timely supply and as per schedule production and packaging is followed by us with no history of complaints from their side. Therefore, they bring us more business deals due to our work, reputation and trust we have built over the years. The focus will be on expanding to the huge untapped markets in India and abroad as substantial part of the funds will be utilized to strengthen this aspect. We therefore believe that we will be able to grow in a healthy way despite competition.

Peer companies comparison of United Heat Transfer

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SWOT ANALYSIS of United Heat Transfer

• STRENGTHS
  • United Heat Transfer have a diverse customer base across multiple continents, giving us a strong global presence and reducing dependency on any single market;
  • knowledgeable and skilled team ensures efficient production and delivery of our products, leading to high customer satisfaction and repeat business;
  • products are precision-engineered to meet industry standards, ensuring high quality and reliability for our customers;
  • distribution channels and strategic location, provide convenience and accessibility for our customers, enhancing our reach and sales potential;
  • With an existing operational status and over 100 employees, have a solid foundation for growth and expansion in the market.
• WEAKNESSES
  • struggle to keep up with demand during peak seasons. To mitigate this, we can invest in additional production capacity and streamline our supply chain to improve efficiency;
  • As an existing business, may face challenges in adapting to rapidly changing market trends. To address this, we can invest in market research and innovation to stay ahead of the competition.
• OPPORTUNITIES
  • Expansion into emerging markets such as Asia and South America can provide new growth opportunities for our business;
  • Collaborating with industry partners to develop new products or technologies can enhance our product offerings and attract new customers;
  • The increasing focus on sustainability and energy efficiency presents an opportunity for us to develop eco-friendly heat exchanger solutions and appeal to environmentally conscious customers;
  • Utilizing digital marketing strategies to reach a wider audience and increase online sales can help us tap into the growing e-commerce market.
• THREATS
  • Intense competition in the heat exchanger equipment industry may pose a threat to our market share to mitigate this, we can focus on differentiation through product innovation and superior customer service.

Business risk factors of United Heat Transfer

• Company is dependent on few numbers of customers for sales. Loss of any of this large customer may affect revenues and profitability.
  • Top 5 customers contribute 79.25%, 67.65%, 55.28% and 63.48% of our total sales for the period ended on July 31st, 2024 and for the financials year ended on March 31st, 2024, 2023 and 2022 respectively.
• Company is dependent on few States. Loss of any of this large States may affect business operations.
  • domestic Sales are dependent on the Top 5 States including Maharashtra, Gujarat, Tamilnadu, Karnataka and Andhra Pradesh. generate almost 94.66%, 91.16%, 83.22% and 88.27% of the revenue of the Total Sales generated as on July 31st, 2024, March 31st, 2024, 2023 and 2022 respectively from these 5 states
• Company is dependent on few Countries. Loss of any of this large Countries may affect our business operations.
  • Export Sales are dependent on the Top 5 Countries including France, Holland, Poland, Netherlands and USA. generate almost 4.72%, 8.84%, 6.21% and 8.75% of the revenue of the Total Sales generated as on July 31st, 2024, March 31st, 2024, 2023 and 2022 respectively from these 5 Countries.
• Company is dependent on a few suppliers for purchase of product. Loss of any of these large suppliers may affect our business operations.
  • Top 10 suppliers contribute 74.04%, 63.40%, 36.46% and 39.86% of our total purchases for the period ended July 31st, 2024 and for the year ended on March 31st, 2024, 2023 and 2022 respectively.

Financials of United Heat Transfer

Key Financial Ratios of United Heat Transfer

Assets & Liabilities of United Heat Transfer

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Profit & Loss of United Heat Transfer

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Cash Flow of United Heat Transfer

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Capital structure of United Heat Transfer

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IPO Details of United Heat Transfer

Object of the issue

Litigation involved in United Heat Transfer

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