Apar Industries Limited: history, ownership, mission, how it works & makes money

A Brief History of Apar Industries Limited

Apar Industries Limited, founded in 1958, has evolved into a key player in the electrical and telecom cable industry in India. The company initially focused on manufacturing conductors but has since diversified its product range significantly. Over the decades, it has expanded its operations to include specialty oils, cables, and other electrical machinery.

In 1978, Apar Industries established a joint venture with General Electric, marking its entry into the international market. This partnership allowed the company to enhance its technological capabilities and expand its product offerings. By the late 1980s, Apar began exporting its products globally, establishing a presence in various countries, including the United States and Europe.

In 1992, the company was listed on the Bombay Stock Exchange, which significantly increased its capital base. Over the following years, Apar made substantial investments in modernizing its manufacturing facilities. In 2006, it launched a state-of-the-art facility in Silvassa, DNH, enhancing its production capacity for conductors.

By 2010, Apar Industries had begun to focus on renewable energy products, aligning with global sustainability trends. The company introduced insulated cables for wind and solar applications, addressing the growing market for renewable energy solutions. Its commitment to research and development enabled Apar to maintain a competitive edge in the evolving market.

As of 2022, Apar Industries reported a revenue of approximately INR 7,270 crores (around USD 930 million), reflecting a year-on-year growth of 25%. The company's consistent performance can be attributed to its diversified portfolio and strategic presence in global markets.

In 2023, Apar Industries continued to innovate, launching new products in the field of electric vehicle (EV) charging infrastructure. This move aligns with the Indian government's push towards sustainable energy solutions and the growing demand for electric mobility. The company is well-positioned to capture significant market opportunities within this sector.

As of the latest quarterly earnings for Q2 2023, Apar Industries reported a net profit of approximately INR 132 crores, showing a growth of 18% compared to the previous quarter. The EBITDA margin stood at 12.5%, reflecting efficient cost management and operational performance.

The company's stock performance has remained resilient, with shares trading around INR 900 as of October 2023. This translates to a price-to-earnings (P/E) ratio of approximately 18, which is in line with industry averages. The market capitalization of Apar Industries has reached around INR 12,000 crores (approximately USD 1.5 billion), showcasing investor confidence and growth potential.

A Who Owns Apar Industries Limited

Apar Industries Limited is a publicly traded company listed on the National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE). As of October 2023, the ownership structure of the company is diverse, encompassing various institutional and retail investors.

The major shareholders as per the latest available data are:

The promoter group, which includes the Bhavsar family, plays a significant role in the company's operations and strategic direction. This group has been instrumental in Apar's growth in the electrical and telecommunications sectors.

As per the most recent financial statements, Apar Industries reported a market capitalization of approximately ₹3,645 crore. The company's revenue for the fiscal year ending March 2023 was around ₹7,300 crore, showing a year-on-year growth of approximately 12%.

In terms of stock performance, the share price of Apar Industries has seen fluctuations but has generally trended upwards over the past year. As of October 6, 2023, the stock was trading at approximately ₹829 per share, reflecting a year-to-date increase of approximately 25%.

Additionally, Apar has been expanding its international presence, which is evidenced by its strategic partnerships and joint ventures. The company has established a footprint in over 100 countries, contributing to its robust export profile.

Recent financial reports indicate that net profit for the fiscal year 2022-2023 was reported at approximately ₹350 crore, with earnings before interest, taxes, depreciation, and amortization (EBITDA) margins standing at around 9.6%.

In summary, Apar Industries Limited continues to demonstrate a solid ownership structure with significant contributions from its promoters and institutional investors. The company's financial health, coupled with its growth trajectory, positions it favorably in the competitive landscape of the electrical and telecommunications industry.

Apar Industries Limited Mission Statement

Apar Industries Limited is dedicated to being a leading player in the energy and infrastructure sectors while focusing on sustainable growth and innovation. The company's mission emphasizes its commitment to delivering high-quality products and services that meet the evolving needs of its customers. This dedication is reflected in their strategic objectives, which align with global standards and operational excellence.

The core pillars of Apar Industries’ mission statement include:

• Quality Assurance: Commitment to providing products that meet or exceed international quality standards.
• Sustainability: Focus on environmentally friendly practices throughout their manufacturing processes.
• Innovation: Investment in research and development to foster new technologies and product offerings.
• Customer-Centricity: Ensuring customer satisfaction through tailored solutions and exceptional service.

To illustrate the company's operational effectiveness in fulfilling its mission, the following table showcases key financial metrics and performance indicators over recent fiscal years:

Apar Industries has shown considerable growth in its revenue and net profit, reflecting the successful implementation of its mission-driven strategy. The increase in EBITDA margin from 9.5% in 2020-21 to a projected 11.0% in 2023-24 indicates improved operational efficiency.

The company also prioritizes sustainability, aiming for a significant reduction in carbon footprint by integrating renewable energy sources in its operations. Its commitment is visible through initiatives like the installation of solar panels across several manufacturing facilities, contributing to a target of achieving 30% of energy needs from renewable sources by 2025.

In terms of corporate social responsibility (CSR), Apar Industries has invested in community development programs, including education and health initiatives, which align with its mission to contribute positively to society. This investment amounted to around INR 20 Crores in 2022 alone.

Overall, Apar Industries Limited demonstrates a robust alignment between its mission statement and operational performance, leveraging its strengths to navigate the dynamic landscape of the energy and infrastructure sectors.

How Apar Industries Limited Works

Apar Industries Limited operates in the electrical and engineering sectors, focusing primarily on manufacturing a diverse set of products including cables, conductors, and transformer oils. The company has segmented its operations into three main divisions: Cables, Conductors, and Oil. These divisions cater to various industries including power, telecommunications, and automotive.

Cables Division

The Cables segment produces a wide range of cables for energy and telecommunication sectors. As of the fiscal year 2022-2023, Apar Industries reported revenue of ₹2,500 crore from this division. The company's production capacity in this segment is approximately 36,000 km of cables annually.

Conductors Division

The Conductors segment specializes in the manufacture of aluminum and copper conductors. In FY 2022-2023, revenue from this division was around ₹3,300 crore. Apar Industries has a production capacity of about 200,000 MT of conductors per year, making it one of the largest players in this market segment in India.

Oil Division

The Oil division offers a variety of transformer oils and other specialty oils. In the latest financial year, this division generated revenue of ₹1,200 crore. The production capacity stands at 30,000 KL per year, supplying to both domestic and international markets.

Market Presence

Apar Industries has a significant market presence both domestically and internationally. The company exports its products to more than 90 countries, with a notable share of revenue coming from exports, which accounted for approximately 20% of total revenue in FY 2022-2023.

Financial Performance

In the latest earnings report, Apar Industries posted a total revenue of ₹7,000 crore for the financial year ending March 2023, which represents a growth of 15% year-on-year. Net profit for the same period was reported at ₹600 crore, leading to a profit margin of 8.57%.

Operational Efficiency

The company has implemented various strategies to enhance operational efficiency, including automation in production processes and lean manufacturing techniques. The operating expenses as a percentage of sales have improved to 12%, down from 15% the previous year.

Future Prospects

Looking ahead, Apar Industries plans to invest heavily in research and development, focusing on sustainable products and renewable energy solutions. The company aims to increase its revenue by 25% over the next three years, targeting sectors such as electric vehicles and smart grid technologies.

As of October 2023, the stock price of Apar Industries Limited stands at around ₹700 per share, reflecting a market capitalization of approximately ₹10,500 crore.

How Apar Industries Limited Makes Money

Apar Industries Limited is a diversified company that operates primarily in the energy sector, offering a range of products and services designed for various applications. The company generates revenue through several key business segments, each contributing to its overall financial performance.

Business Segments

• Power Cables
• Conductors
• Transformers
• Specialty Oils

In the fiscal year ending March 31, 2023, Apar Industries reported a consolidated revenue of ₹12,057 crore, which reflects a growth of 25% compared to the previous year. The contributions from various segments are as follows:

Power Cables

The power cables segment remains a significant revenue driver. In 2022-2023, Apar Industries achieved sales of ₹4,180 crore in power cables, largely from government contracts in renewable energy projects and infrastructure development initiatives.

Conductors

The conductor segment also plays a vital role, with revenues hitting ₹3,500 crore. The demand arises primarily from the transmission and distribution sector, where increasing electricity consumption fuels growth.

Transformers

Transformers contribute ₹2,500 crore to the overall revenue. The company has entered several long-term contracts with utilities, enhancing its revenue stability in this segment.

Specialty Oils

The specialty oils segment, generating ₹1,877 crore, includes transmission and distribution oils and has seen significant demand due to the rise in power generation and new market specifications.

Geographical Revenue Sources

Apar Industries operates not only domestically but also in international markets. For the fiscal year 2022-2023, the breakdown of revenue by geography was:

The international markets have been growing rapidly, particularly in regions with increased investment in infrastructure. This segment is poised for further growth as the company seeks to increase its export footprint.

Profitability Metrics

For the fiscal year ended March 31, 2023, Apar Industries achieved a net profit of ₹774 crore, resulting in a net profit margin of 6.43%. This profitability is a direct result of improved operational efficiencies and cost management strategies.

Moreover, the company’s Earnings Before Interest and Taxes (EBIT) stood at ₹1,208 crore, indicating a solid operational performance across its various segments.

Recent Developments

Apar Industries is investing in expanding its manufacturing capacity, particularly in specialty oils and power cables, with a capital expenditure plan of around ₹400 crore over the next two fiscal years. This expansion aims to tap into the growing demand driven by renewable energy initiatives.