Vdeal System IPO: Affordable Disappointing Debut

Vdeal System Limited Introduction

Vdeal System Limited is an integrated electrical and automation solution provider, established in December 2009. The company specializes in a range of products and services, including:

1. Smart Low Voltage (LV) Panels
2. Smart Medium Voltage (MV) Panels
3. Smart Variable Frequency Drive (VFD) Panels
4. Medium Voltage (MV) Soft Starters
5. Energy Management Systems (EMS)
6. Smart Programmable Logic Controller (PLC) Panels

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Brief about Vdeal System Limited

Summary of the business of Vdeal System Limited

company providing solutions in Smart Low Voltage (LV) panels, Smart Medium Voltage (MV) panels, Smart Variable Frequency Drive (VFD) panels, and Smart Programmable Logic Controller (PLC) panels, Air insulated & Sandwich busducts backed by In-house Product design & development, manufacturing, system integration, servicing of automation solutions and smart electrical control panels that adhere to high international IEC standards of quality and safety. Company has business relationships with global electrical players. Such strategic tie ups with renowned brand owners give us the competitive edge over competitors.

Company is a growing Integrated Electrical and Automation solution provider dealing in comprehensive electrical solutions across industries with significant presence in multiple Industry segments. Our products are supplied to industry players through a business-to-business (B2B) model.

Company is also fuelling the next wave of AI (Artificial Intelligence) and ML (Machine Learning)-driven innovation solution that can integrate IOT (Internet of things), AI and ML into a Cloud based Software as a Service (SaaS) Model. Over the past few years, IoT has become one of the most important technologies of the 21st century through which everyday objects like kitchen appliances, cars, thermostats, baby monitors can be connected to the internet via embedded devices. Hence, by providing IOT solutions, Company aims to integrate seamless communication between people, processes, and things.

Vdeal System Limited History

Company was originally incorporated on December 10, 2009 as a private limited company in the name and style of “Swastik Energy System Private Limited”. Vdeal System with the purpose of integrating systems by prioritizing customer Value, tailoring Designs to their needs, Engineering innovative solutions, and Automating processes with a robust and Legitimate system. Hence,
VDEAL Stands for “VVe Design Engineer Automate Legitimate System”. Unveiling the meaning behind the acronym:
“Victory on creating Value for customer, Design by customer needs, Engineer to make it perfect, Automate to make process reliable, thus creating a Legitimate System.”

Vdeal System Limited Promoters & Board of Directors

• The Promoters of Vdeal System Limited Company are Mr. Dhiraj Kochar, Mrs. Tapaswini Panda, Mr. Brahmananda Patra and M/s Reveal AI Technologies Private Limited.

Vdeal System Limited Board of directors

Vdeal System Limited Share Holding pattern

Vdeal System Limited Strength

• Experienced Management Team and Robust In-House Technical Expertise
• Tailoring or Customization of Products to Meet Unique Customer Needs
• Best practices for Efficient Production Process and Supply Chain Management
• Location advantage and Competitive Price
• Nurturing a Strong Brand Reputation
• Quality Control and Safety Commitment
• Well Strategized Growth Plan

Vdeal System Limited Strategies

• Increase scope of offering and entering new emerging segments
• Continued focus on post sales services and customer centric approach
• Invest in Infrastructure and Technology
• Entry into New Geographies and Verticals
• Effective Marketing Methods

Industry Outlook

GLOBAL SMART ELECTRIC PANEL OVERVIEW

Smart Electrical Panels Market to reach USD 10.3 Billion by 2032 Report by Data Horizon Research

The advancement of technology and digital transformation solutions propels the growth of the smart electrical panels industry.

Fort Collins, Colorado, Jan. 04, 2024 (GLOBE NEWSWIRE) — The Smart Electrical Panels Market size was valued at USD 5.8 Billion in 2022 and is anticipated to reach USD 10.3 Billion by 2032 at a CAGR of 6.1% during the forecast period 2023-2032.
Smart electrical panels have advanced due to the adoption of SMART technologies and grid digitization. Notable developments include motion sensors, data analytics for energy management, and improved energy usage. This has prompted manufacturers to create sophisticated products with rich features.

Energy sustainability and compliance are important considerations for homeowners, and smart electrical panels have become essential to home automation. These panels can be integrated with smart home systems, enabling users to conveniently control various aspects of their home, including lighting, heating, and security, from a centralized interface.

Electrical panels monitor energy use and costs, helping homeowners regulate energy consumption. The shift to renewable energy sources, such as solar, is driven by cost savings and sustainability. Smart grids facilitate effective energy distribution.

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Segmentation Overview:

The global smart electrical panels market has been segmented into Form, industry, and region. The oil & gas industry is expected to have the most significant market share due to the increasing global demand for oil and gas.

Smart Electrical Panels Market Report Highlights:

The global smart electrical panels market growth is anticipated at a CAGR of 6.1% by 2032.

Smart electrical panels are crucial to home automation, integrating with smart home systems to control lighting, heating, and security. They monitor energy use and costs, helping homeowners regulate consumption. Smart grids facilitate effective energy distribution, driving the shift to renewable energy sources for cost savings and sustainability.
The European electric control panel market is expected to dominate with USD 2,046.4 million in revenue in 2022. This growth is due to increased demand for electricity and electric vehicles.

Some prominent players in the smart electrical panels market report include Leviton Manufacturing Co. Ltd., ABB Ltd., Central, Bectrol, Eaton, RITTAL GMBH & CO. KG, Schneider Electric SE, Rockwell Automation Inc., Siemens AG, SIMON PROtec, and others.

Industry Trends and Insights:

ABB will provide Volvo Cars with more than 1,300 advanced robots to produce their upcoming electric vehicles as part of a major contract for high-end robotic automation solutions.

Leviton and SPIE have signed a new three-year agreement, marking 20 years of collaboration. They provide hospitals, schools, and government buildings with network infrastructure and installations.

Smart Electrical Panels Market Segmentation:

By Form: Open, enclosed

• By Industry: Manufacturing, Food and Beverages, Transportation and Logistics, Healthcare, Automotive, Oil & Gas
• By Region: North America, Latin America, Europe, Asia Pacific, the Middle East and Africa.

Low Voltage Distribution Panel Market Size

Low Voltage Distribution Panel Market was valued at USD 1.3 billion in 2022 and is anticipated to record 6.5% CAGR from 2023 to 2032, owing to the increasing emphasis on renewable energy sources like solar and wind power is propelling the demand for low voltage distribution panels to efficiently manage and distribute this decentralized energy. The shift towards renewables is poised to substantially bolster the market, as the escalating adoption of sustainable energy sources necessitates more advanced and adaptable distribution infrastructure to effectively manage and channel this evolving energy landscape.
Rising need for upgrading and modernizing existing infrastructure, especially in developing regions, fuels the market as industries and utilities seek more efficient and reliable power distribution systems. Furthermore, the advent of smart grid technology and the integration of IoT-enabled devices are driving the demand for advanced low voltage distribution panels that offer enhanced monitoring, control, and automation capabilities, catering to the growing requirements for energy-efficient solutions in commercial, residential, and industrial settings.

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Rising need for upgrading and modernizing existing infrastructure, especially in developing regions, fuels the market as industries and utilities seek more efficient and reliable power distribution systems. Furthermore, the advent of smart grid technology and the integration of IoT-enabled devices are driving the demand for advanced low voltage distribution panels that offer enhanced monitoring, control, and automation capabilities, catering to the growing requirements for energy-efficient solutions in commercial, residential, and industrial settings.

What are the growth opportunities in this market? COVID-19 Impact

The COVID-19 pandemic initially disrupted the low voltage distribution panel market, causing supply chain interruptions and project delays due to lockdowns. However, as industries adapted to remote work and construction resumed, demand for efficient energy distribution solutions increased. The pandemic accelerated trends toward smart infrastructure and sustainable energy, driving innovation and investment in low voltage distribution panels for resilient and adaptable power management systems.

Low Voltage Distribution Panel Market Trends

Several notable trends are shaping the low voltage distribution panel industry, owing to the rising demand for smart and connected panels equipped with IoT capabilities, allowing remote monitoring, predictive maintenance, and enhanced energy efficiency. The push towards renewable energy sources like solar and wind power is propelling the need for panels that can integrate these sources seamlessly into existing grids. The market is witnessing a shift towards modular and customizable panels that offer flexibility, scalability, and easier installation, catering to diverse industrial, commercial, and residential applications. Moreover, there’s a notable emphasis on safety and compliance with stringent regulations, driving the development of panels.

Low Voltage Distribution Panel Market Share

Siemens has emerged as a dominant force in the low voltage distribution panel industry, commanding a substantial market share. Its stronghold is attributed to a comprehensive product lineup, continual technological advancements, and a global footprint. Renowned for its deep expertise in electrical distribution, especially within the low voltage realm, Siemens has established itself as an industry frontrunner. The company’s unwavering commitment to research and development, showcasing cutting-edge features like smart grid integration and digitalization, resonates with industries and utilities seeking progressive distribution solutions. Its expansive presence across diverse global markets and a track record for delivering top-notch quality and innovation are pivotal in propelling Siemens’ growth within the competitive landscape of the low voltage distribution panel industry.

Some of the key market players operating across the low voltage distribution panel industry are:

• Eaton
• Legrand
• Schneider Electric
• Siemens
• ABB
• General Electric
• Larsen & Toubro Limited
• NHP
• INDUSTRIAL ELECTRIC MFG
• ESL POWER SYSTEMS, INC.
• Hager Group
• Ags
• Meba Electric Co., Ltd
• Norelco
• EAMFCO
• alfanar Group

Low Voltage Distribution Panel Industry News

In May 2023, Schneider Electric launched FlexSet, the innovative low-voltage switchboard in Canada, which marks a significant step in advancing electrical distribution solutions. This state-of-the-art switchboard offers unparalleled flexibility, customization, and ease of installation, addressing diverse energy distribution needs across various sectors. With its modular design and cutting-edge features, FlexSet not only promises enhanced operational efficiency but also signifies Schneider Electric’s commitment to delivering adaptable and future- ready solutions in the Canadian market.
Source: https://www.gminsights.com/industry-analysis/low-voltage-distribution-panel-market

Medium Voltage Distribution Panel Market Size

Medium Voltage Distribution Panel Market was valued at USD 5.3 billion in 2022 and is projected to expand at over 5% CAGR from2023 to 2032, propelled by the increasing urbanization and industrialization globally are fueling the demand for reliable and efficient power distribution systems. Additionally, the escalating adoption of renewable energy sources, such as solar and wind power, necessitates robust distribution infrastructure, boosting the market growth. According to the International Energy Agency (IEA), the global investment in clean energy has surpassed USD 1.7 trillion in 2023 and is predicted to continue rising due to increasingly stringent emission regulations enforced by various nations.

Medium Voltage Distribution Panel Market Trends

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The shift towards smart and digital solutions is prominent, leveraging technologies like IoT and data analytics for real-time monitoring, predictive maintenance, and improved efficiency. Increasing emphasis on sustainability and renewable energy integration is driving the demand for panels capable of accommodating diverse power sources, aligning with global efforts to reduce carbon footprints. Modular designs and advancements in compact, space-saving panels are gaining traction, catering to evolving installation needs and offering scalability. Additionally, there’s a growing focus on enhancing safety features and reliability standards, ensuring robust performance and compliance in diverse industrial, commercial, and utility settings.

The commercial distribution panel market is forecasted to achieve 5.5% CAGR through 2032. Increased infrastructure spending in response to escalating electricity demands in developing regions is anticipated to fuel demand for distribution panels in the commercial sector. The rise in new commercial projects underscores the necessity for efficient electrical distribution systems, enhancing market penetration. Stricter government regulations favouring reliable and efficient electrical infrastructure will bolster a positive business landscape. The burgeoning demand for electricity, especially to support data centers’ operations, will further stimulate market growth

Asia Pacific medium voltage distribution panel market is poised to attain about 5.5% CAGR from 2023 to 2032. Rapid urbanization, industrialization, and infrastructural developments in countries like China, India, and Southeast Asian nations are driving increased electricity demand. The expansion of renewable energy sources, coupled with government initiatives promoting clean energy adoption, is further fueling the market. Additionally, investments in upgrading aging electrical infrastructure to accommodate smart grid technologies and the increasing focus on reliable power distribution solutions for industries and urban developments are significant drivers. The region’s burgeoning industrial sector, especially in manufacturing and IT, is propelling the demand for medium voltage distribution panels.
Medium Voltage Distribution Panel Market Share

Among the listed companies, Siemens holds a substantial market share in the medium voltage distribution panel industry Siemens’ dominance stems from its extensive product portfolio, technological innovation, and global presence. The company’s long-standing expertise in electrical distribution solutions, particularly in the medium voltage segment, has positioned it as a market leader. Siemens’ focus on research and development, offering advanced features like smart grid integration and digitalization, has garnered trust among industries and utilities seeking reliable and future-ready distribution solutions. Its widespread reach across diverse geographical markets and a reputation for quality and innovation contribute significantly to maintaining its formidable market share in the medium voltage distribution panel industry.

Medium Voltage Distribution Panel Industry News

In April 2023, Siemens announced that its joint venture with Rail Vikas Nigam Limited secured a bid for electrifying Mumbai Metro Line 2B, connecting DN Nagar to Mandale. The contract involves designing, manufacturing, supplying, testing, installing, and commissioning two 110 kV receiving substations, including 25 kV, 33 kV, and 110 kV cabling. It encompasses a comprehensive 25 kV overhead catenary system and a 33 kV auxiliary power distribution system, comprising substations, switching stations, and a complete SCADA system for the main line and depot. This project will significantly enhance Mumbai’s Metro Line electrification network, providing improved transportation across the city.

The Future of Internet of Things in India

Given the huge unsaturated market for the automotive industry, industrial manufacturing, healthcare, etc., and with favorable policy changes by the Indian government in the past couple of years, India is deemed to become the global industrial hub. With 1.4 billion strong consumers, consumer IoT, automotive IoT, and healthcare IoT are also bound to grow strong in upcoming years. By 2028, the Indian IoT market is expected to reach 59.99 billion USD, of which 21.78 billion USD would account for industrial IoT and 21.26 billion USD for automotive IoT. The consumer IoT is also expected to reach 5.55 billion USD.

The Internet of Things is one of the prominent industry 4.0 technologies, driving manufacturing supply chain and retail businesses globally and that is why the IoT market is witnessing a CAGR of over 16% over a period of 10 years (2018-2028). With the global semiconductor shortage slowing down the market supply chain and growth (pre-pandemic levels), the IoT demand in industry, security, and smart city projects is still on the rise. With more Indians adopting a tech-savvy lifestyle including smart homes, wearables, smart travel, etc., IoT is unstoppable.
To conclude, the internet of Things market in India is witnessing a rapid growth rate, CAGR of 17.05% between 2023-2028 which is more than the global IoT CAGR of 16%. Indians are tech savvy and with the world’s largest country by population, mostly young, India is the best bet in IoT developments and IoT-led industrial, medical, supply chain and manufacturing, retail, and smart city development and IoT promotions as well.

Vdeal System Limited Business Data

Vdeal System Limited Verticals

• LV Panel
• MV Panels
• Automation Panels
• Bus Ducts
• Other products
  • Control Relay Panels
  • Control Desks
  • DG Synchronization Panels

END USER/INDUSTRIES TO WHICH IT CATERS Vdeal System Limited PRODUCTS/SERVICES

Presently, the Company’s focus is on energy consumers, like PSU’s and Corporate private industries. However, Company doesn’t contract directly with the DISCOMS or Utilities, we supply them through the EPC contractors or other complementary channels.

Vdeal System Limited supplying our Product to various clients from of different industries, the list of which are as given below:

Vdeal System Limited Product wise break-up

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Vdeal System Limited Customer dependency

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Vdeal System Limited Supplier dependency

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Vdeal System Limited Machinery/Plants/Factory

• Registered Office and Manufacturing Plant: Plot No- 4A, 4B & 6, Janla Industrial Area, Jatni, Khorda, Janla – 752054, Orissa, India.

Vdeal System Limited Capacity Utilisation

Competition

Vdeal System Limited operate in a highly competitive industry with low entry barriers, making it susceptible to competition from new entrants. The market comprises numerous players, including both unorganized and organized entities. goal is to deliver branded, standardized, and high-quality products at competitive prices to our consumers. In this competitive landscape, compete with regional and product line-based strategies. Some of our competitors have greater financial resources and offer a broader range of products. However, our focus on client relationships, reputation, employee expertise, market focus, and product quality help us stay competitive. integrated and cost-effective offerings, coupled with our commitment to customer satisfaction, reliability, and quality consciousness, give us a competitive advantage. With technical capabilities, industry experience, and quality assurance, we are confident in overcoming competition from both organized and unorganized players in the market.

Vdeal System Limited Peer companies comparison

(Rs. In Lakhs)

Vdeal System Limited SWOT ANALYSIS

• Strenght:
  • Established operations and proven track record in various industries
  • Increased & fast adoption of better and energy efficient technology, latest IEC standards, Integration of IoT & Digitalization of Panels.
  • Experienced Management Team
  • Customize, flexible, Modular Products to meet unique customers needs.
  • Focus on Process Automation
  • Quality services
• Weakness:
  • High Working Capital Requirements
  • Heavy dependency on supplier
• Opportunities:
  • Extensive use of GEM Portal& other online procurement Portals
  • Online Selling through own website for direct selling to system integrators & one time Customers
  • Development of Infrastructure
  • Expanding New geographical areas
  • Vide array of stakeholders
  • Opportunity in Green Energy Sector
• Threats:
  • High Level Competition
  • Changes in Govt. Policies War & Natural Calamities

Vdeal System Limited Business risk factors

• Vdeal System Limited business is substantially dependent on certain key customers, from whom derive a significant portion of revenues. The loss of any significant customer may have a material and adverse effect on business and results of operations.
• Vdeal System Limited dependent on Top 10 suppliers for uninterrupted supply of Raw-Materials. Any shortfall in the supply of our raw materials, or an increase in raw material costs and other input costs, may adversely affect the pricing and supply of our products with subsequently having an adverse effect on the business, results of operations and financial conditions of company.
• business will suffer if fail to keep pace with rapid changes in technology and the industries on which focus.
• Vdeal System Limited company unable to work on its full potential and utilized its full capacity for the production and manufacturing of products.
• Vdeal System Limited operate in a competitive environment, cheap substitutions, face fair competition and low entry barriers from organized and unorganized players, which may adversely affect business operations and financial condition.
• Vdeal System Limited business is substantially dependent on design and engineering teams to accurately carryout the estimates and engineering studies for potential orders. Any deviation during the execution of the order as compared to our estimates could have a material adverse effect on cashflows, results of operations and financial condition.
• Significant portion of revenue has been generated from some states of India, any loss of business from these states may adversely affect revenues and profitability.
• Global Shortage in chip supply could have adverse effects our manufacturing process.

Vdeal System Limited Financials

Vdeal System Limited Key Financial Ratios

Vdeal System Limited Key Performance Indicators

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Vdeal System Limited Balance Sheet

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Vdeal System Limited Profit & Loss

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Vdeal System Limited Cash Flow

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Vdeal System Limited Capital structure

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IPO Details

Vdeal System IPO Details

Object of the issue

Litigation involved in Vdeal System Limited

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