The Anup Engineering Limited: history, ownership, mission, how it works & makes money

A Brief History of The Anup Engineering Limited

Founded in 1965, The Anup Engineering Limited is one of India’s leading engineering companies specializing in the manufacture of high-quality process equipment. The company initially focused on manufacturing equipment for the chemical and petrochemical industries.

By the late 1970s, Anup Engineering had expanded its operations, producing heat exchangers and pressure vessels that catered to various sectors, including oil, gas, and power. Notably, in 1983, the company was listed on the Bombay Stock Exchange (BSE), a significant milestone that marked its entry into public capital markets.

Throughout the 1990s, Anup Engineering made substantial investments in technology and infrastructure, leading to an increase in production capacity and an enhancement of product quality. In 1995, the company set up a state-of-the-art manufacturing facility in Gujarat, which allowed it to meet growing domestic and international demand.

The early 2000s saw further diversification of its product lines. Anup Engineering began producing specialized equipment for the nuclear power sector, reflecting its commitment to innovation and quality. By 2005, the company had developed a robust portfolio that included not only chemical process equipment but also equipment for the pharmaceutical and food processing industries.

In recent years, The Anup Engineering Limited has focused on sustainable practices and reducing its carbon footprint. In 2020, the company reported a revenue of ₹350 crores, with a net profit margin of 8.5%. This represented significant growth compared to the previous financial year, where revenues stood at ₹300 crores.

The company’s operational excellence is underscored by its robust financial performance. As of the fiscal year 2022-2023, The Anup Engineering Limited reported:

In 2022, the company announced plans to invest ₹50 crores in upgrading its manufacturing facilities to enhance production efficiency and expand its capabilities in renewable energy projects. This investment reflects an ongoing commitment to innovation and responding to industry trends.

The Anup Engineering Limited continues to leverage its established reputation and technical expertise to capture new markets and sustain its growth trajectory. The company remains focused on strategic partnerships and collaborations, further solidifying its position within the engineering sector.

A Who Owns The Anup Engineering Limited

The Anup Engineering Limited, a prominent player in the engineering sector in India, has a diverse ownership structure. Its shares are listed on the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE), allowing for a wide distribution of equity ownership.

As of the latest data available for the fiscal year ending March 2023, the ownership distribution is as follows:

Among the promoter group, the key individuals include:

The public shareholders consist of retail investors, institutional investors, and foreign portfolio investors (FPIs). As of March 2023, the institutional ownership breakdown shows:

In terms of stock performance, The Anup Engineering Limited has shown remarkable performance over recent quarters. The stock price reached a high of ₹600 in January 2023, reflecting a strong growth trend influenced by rising demand in the engineering sector.

The company reported a total revenue of ₹500 crores for the fiscal year ending March 2023, with a net profit of ₹50 crores, translating to an earnings per share (EPS) of ₹10.

Overall, the ownership landscape of The Anup Engineering Limited demonstrates a healthy balance between promoter control and public participation, supporting its continued growth in the engineering industry.

The Anup Engineering Limited Mission Statement

The Anup Engineering Limited (AEL), established in 1965, is an Indian company specializing in the manufacturing of engineering products, primarily for the chemical and petrochemical industries. Their mission statement emphasizes commitment to quality, sustainability, and customer satisfaction.

AEL’s mission is to be recognized as a leader in engineering solutions by consistently delivering high-quality products and services. They aim to innovate continuously while ensuring environmental responsibility and enhancing stakeholder value.

The mission encapsulates core values such as:

• Quality Commitment
• Customer Satisfaction
• Sustainability and Safety
• Innovation and Excellence

In terms of market performance, AEL reported significant revenue growth in recent years. For the financial year ending March 2023, the company achieved a revenue of ₹ 759.8 million, reflecting a growth of 21.5% year-on-year.

The Mission Statement aligns with their operational strategy, which focuses on expanding their production capacity and diversifying their product offerings. AEL has invested approximately ₹ 400 million into new technology and capacity enhancements over the past two years.

The Anup Engineering Limited is also focused on sustainability. The company has set ambitious goals for reducing its carbon footprint, aiming to decrease emissions by 30% by 2030 compared to the baseline year of 2020.

AEL engages in various community initiatives as part of its corporate social responsibility efforts, which include education, healthcare, and environmental conservation projects. These efforts serve as a foundation for their mission to contribute positively to society while achieving business growth.

In conclusion, AEL's mission statement reflects a strong commitment to both business excellence and social responsibility, aligning with their strategic goals and market performance. With robust financial growth, ongoing innovation initiatives, and a strong focus on sustainability, AEL is well-positioned to continue delivering value to its stakeholders.

How The Anup Engineering Limited Works

The Anup Engineering Limited, established in 1965, specializes in the manufacturing of high-quality industrial equipment. The company operates in various sectors, including oil and gas, power, and chemicals, focusing on engineering, procurement, and construction (EPC) services.

As of the fiscal year 2022, Anup Engineering reported a total revenue of INR 304.2 crore, demonstrating a growth rate of 20% compared to the previous year. The EBITDA for the year was INR 51.3 crore, reflecting an EBITDA margin of 16.9%.

In terms of capital structure, the total assets stood at INR 420.5 crore, with a debt-to-equity ratio of 0.35. This ratio indicates a conservative approach to leveraging, allowing the company to maintain financial stability while pursuing growth opportunities.

The company’s product offerings include pressure vessels, heat exchangers, and reactors, which have applications in various sectors. Anup Engineering serves clients both domestically and internationally, with significant contracts in regions such as the Middle East and Africa.

Moreover, The Anup Engineering Limited has consistently expanded its capacities. In the recent quarter, the company commissioned a new manufacturing facility in Gujarat, enhancing its production capabilities by an additional 30%.

The company’s order book stood at INR 600 crore as of Q2 FY 2023, indicating robust demand and a healthy pipeline of contracts. The orders are diversified across various sectors, ensuring stability against sector-specific downturns.

In addition to its operational efficiencies, Anup Engineering has invested in R&D, committing approximately 5% of its revenue to innovation initiatives. This has led to improved product offerings and increased competitiveness in the market.

On the stock market, the company's shares have shown a positive trend, with a 52-week high of INR 420 per share, reflecting a 40% increase year-to-date. Analysts have rated the stock as a “buy,” anticipating continued growth as the company capitalizes on its expanding order book.

How The Anup Engineering Limited Makes Money

The Anup Engineering Limited generates revenue primarily through the manufacturing and supply of a diverse range of engineering products and services, specifically targeting sectors such as oil and gas, chemicals, pharmaceuticals, and power generation. The company’s revenue streams can be categorized into two main segments: engineering products and project execution.

Engineering Products Segment

In FY 2023, Anup Engineering reported revenue of ₹2,132 million from its engineering products segment, which includes pressure vessels, heat exchangers, and related components. This segment has displayed steady growth, attributed to increasing demand in various industrial applications.

Project Execution Segment

The project execution arm accounted for ₹1,457 million in FY 2023 revenue, showcasing the company's capability in handling large-scale projects. This segment benefits from long-term contracts with leading firms within the oil and gas industry, resulting in a stable income stream.

Market Demand and Growth Drivers

The company's success is significantly influenced by market demand in various sectors. For example, oil and gas regulations have led to increased investments in infrastructure, creating a consistent demand for Anup's products. Additionally, the growing emphasis on renewable energy projects has opened new avenues for revenue generation.

Moreover, Anup Engineering has a robust export orientation. As of FY 2023, approximately 30% of total revenue came from international markets, with key exports to the UAE and European nations.

Cost Structure and Profitability

Anup Engineering has maintained a healthy gross margin of approximately 25% over the last fiscal year. This is primarily due to efficient production processes and economies of scale achieved through increased production capacity. Operating expenses have been controlled, with an operating margin reported at 18%.

Recent Financial Performance

In the latest quarterly report for Q2 FY 2023, Anup Engineering posted a revenue of ₹1,025 million, with a net profit of ₹185 million, reflecting a robust net profit margin of 18%. The financial metrics indicate a positive trajectory, underpinned by new contract wins and ongoing projects.

Outlook

The outlook for The Anup Engineering Limited remains optimistic, with projected revenue growth of 10%-15% over the next fiscal year, as the company expands its product offerings and strengthens its market presence both domestically and internationally. Strategic partnerships within the engineering sector are expected to further enhance profitability and market share.