Surya Roshni Limited: history, ownership, mission, how it works & makes money

A Brief History of Surya Roshni Limited

Surya Roshni Limited, established in 1973, is one of India’s leading manufacturers and suppliers of lighting products and steel pipes. The company has expanded its operations significantly since its inception, growing from a small enterprise to a publicly traded company listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

During the early years, Surya Roshni focused primarily on electric lamps and lighting solutions. By 1980, the company began diversifying its product line to include a wider range of lighting products and expanded into steel manufacturing. The establishment of its first steel pipe plant in 1986 marked a pivotal moment in its growth strategy.

According to its financial reports, for the fiscal year ending March 2023, Surya Roshni reported a total revenue of ₹3,152 crores, reflecting a year-on-year growth of 12% compared to ₹2,807 crores in fiscal 2022. The company’s net profit for the same period stood at ₹181 crores, up from ₹155 crores in the previous year, indicating an increase of 16.8%.

In 2020, the company launched its new range of smart lighting solutions in line with modern technological trends, emphasizing energy efficiency and innovative design. This initiative has contributed significantly to its revenue growth in the lighting segment, positioning the company as a key player in the market.

As of October 2023, Surya Roshni's market capitalization was approximately ₹4,900 crores. The stock performance over the past year has been promising, with shares increasing by approximately 35%, making it an attractive option for investors.

Surya Roshni’s commitment to sustainable growth is reflected in its investment in renewable energy. In 2021, the company announced plans to invest ₹300 crores over the next five years to expand its solar lighting and energy-efficient product offerings. This initiative aligns with India's push towards renewable energy, positioned to boost the company's market presence.

The company also engages in a variety of corporate social responsibility (CSR) initiatives, focusing on health, education, and community development, which further enhances its brand reputation and stakeholder relationships.

In terms of market share, as of 2023, Surya Roshni holds approximately 15% of the Indian lighting market, competing with other major players such as Philips and Bajaj Electricals. Its diverse product portfolio includes a wide range of ceiling lights, street lights, and decorative lighting solutions that cater to both residential and commercial sectors.

Additionally, the company's steel division has also contributed to its growth, accounting for nearly 40% of its overall revenue in recent years. Surya's steel pipes are used extensively in construction, irrigation, and infrastructure projects across India.

Surya Roshni continues to explore international markets, establishing a presence in regions such as Africa and the Middle East. The company's growth strategy emphasizes innovation, sustainability, and market diversification to maintain its competitive edge in the global industrial landscape.

A Who Owns Surya Roshni Limited

Surya Roshni Limited, listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in India, operates in the lighting products and steel pipes sectors. Understanding ownership is essential for assessing its governance structure and market perception.

As of the latest filings, the ownership structure of Surya Roshni is divided among various stakeholders, including promoters, institutional investors, and the retail public. Below is the detailed breakdown of the shareholding pattern:

The major shareholders among the promoters include the Agarwal family, which has a significant stake in the company. Their long-standing involvement has contributed to the brand's reputation and operational strategies.

According to the most recent annual report, as of March 2023, the company's market capitalization stood at approximately ₹1,600 crore. This positions Surya Roshni as a prominent player in its sectors.

In terms of financial performance, the company recorded total revenues of ₹3,720 crore for the fiscal year ending March 2023, with a net profit of ₹220 crore. This reflects a growth of about 15% in revenue compared to the previous year and a 10% increase in net profit.

Surya Roshni has also undertaken several initiatives to boost its stock performance. The return on equity (ROE) for the company was reported at 12.5%, with a debt-to-equity ratio of 0.6, indicating a stable financial structure.

The stock performance of Surya Roshni has shown variability, reflecting broader market trends. As of October 2023, its stock price was around ₹270 per share, marking a 20% increase over the past year, driven by consistent performance in the lighting and steel sectors.

Overall, the ownership distribution and financial metrics highlight the company's stability and growth potential, influenced significantly by its promoters and institutional investors.

Surya Roshni Limited Mission Statement

Surya Roshni Limited, established in 1973, is an Indian multinational company renowned for its diverse operations across the lighting, steel, and consumer goods sectors. The company's mission statement emphasizes its commitment to quality, sustainability, and innovation, aimed at enhancing customer satisfaction and ensuring sustainable growth.

As a key player in the lighting industry, Surya Roshni aims to provide energy-efficient lighting solutions that contribute to environmental conservation. The company highlights its focus on technological advancements and research and development, striving to meet the evolving demands of its customers.

In the steel sector, Surya Roshni's mission includes delivering high-quality products tailored to meet the industry's needs while ensuring operational excellence and cost-effectiveness. The company is dedicated to adhering to the highest standards of safety and sustainability in its manufacturing processes.

The consumer goods division underlines the company’s mission to offer a wide range of innovative products that improve the quality of life for its customers. By focusing on quality and affordability, Surya Roshni aspires to maintain a strong market position and customer loyalty.

Surya Roshni's strategic focus includes expanding its global footprint while maintaining strong ties with local communities. The company is dedicated to adopting sustainable practices across all operations, recognizing the environmental impact of its business activities.

In 2023, Surya Roshni launched new energy-efficient lighting products, focusing on LED technology that promises over 50% energy savings compared to traditional lighting solutions. This initiative aligns with their mission to lead in sustainability.

Surya Roshni's commitment to quality is reflected in its certifications. The company has been awarded ISO 9001:2015 and ISO 14001:2015 certifications, ensuring adherence to international quality and environmental management standards.

Financially, Surya Roshni Limited reported a consolidated revenue growth of approximately 13% year-over-year, showcasing resilience and adaptability in a competitive market. The company’s market capitalization as of October 2023 stands at approximately ₹11,000 Crores.

The continuous investment in research and development signifies Surya Roshni's mission to innovate and remain at the forefront of industry trends. The R&D expenditure for FY 2022-23 was reported at approximately ₹50 Crores, enhancing product offerings and operational efficiencies.

How Surya Roshni Limited Works

Surya Roshni Limited is a prominent player in the lighting and manufacturing industry, primarily engaged in the production of a variety of lighting solutions, steel pipe products, and other associated goods. The company operates through several segments, namely the Lighting Division and the Steel Division.

Lighting Division

The Lighting Division represents a significant portion of Surya Roshni's revenue stream, accounting for approximately 68% of total sales in FY23. This division focuses on the manufacture and sale of LED lights, traditional lighting solutions, and other electrical appliances.

• Revenue from the Lighting Division in FY23: ₹2,700 crores
• Market share in the Indian LED segment: 16%
• Annual growth rate for the LED segment: 25%
• Number of lighting products offered: 2,500+

Surya Roshni leverages modern manufacturing processes and research & development to innovate, ensuring that it stays competitive in a rapidly evolving market. The company has invested around ₹50 crores in R&D capabilities over the last two years to enhance product development.

Steel Division

The Steel Division focuses on the manufacturing of steel pipes and tubes. This division accounted for approximately 32% of the total revenue in FY23.

• Revenue from the Steel Division in FY23: ₹1,200 crores
• Production capacity for steel pipes: 400,000 tons per annum
• Major applications: Water supply systems, construction, and infrastructure projects

Surya Roshni's steel pipes are critical in meeting the needs of various sectors, including agriculture, construction, and infrastructure. The company sources raw materials from both domestic and international suppliers to maintain quality and cost-effectiveness.

Financial Performance

For the fiscal year ending March 31, 2023, Surya Roshni reported strong financial results:

The company's focus on operational efficiency and cost management has contributed to a steady increase in profitability. Surya Roshni's net profit margin has improved from 6.88% in FY22 to 7.69% in FY23.

Market Strategies

Surya Roshni has adopted several market strategies to enhance its competitive edge:

• Expansion into international markets, targeting regions like Africa and the Middle East.
• Partnerships with various e-commerce platforms to boost online sales of lighting products.
• Investment in smart technology for lighting solutions, tapping into the IoT market.

Future Outlook

The company's strategic initiatives and sustained demand in both the lighting and steel sectors position it well for future growth. Analysts project a revenue increase of approximately 15%-20% annually in the next three years, heavily influenced by trends in sustainable and energy-efficient lighting solutions.

How Surya Roshni Limited Makes Money

Surya Roshni Limited generates revenue through several key business segments, including lighting, steel pipe manufacturing, and consumer goods. Each segment contributes significantly to the overall financial health of the company.

1. Lighting Segment

The lighting segment is a major revenue driver for Surya Roshni. This includes a range of products such as LEDs, CFLs, and traditional lamps. In FY 2022-2023, this segment reported a revenue of approximately ₹1,045 crore, reflecting a year-over-year growth of around 20%.

2. Steel Pipe Segment

Surya Roshni's steel pipe business is another vital component of its income. The company produces a variety of products, including galvanised and black pipes. For FY 2022-2023, the steel pipe segment's revenue reached about ₹3,200 crore, accounting for roughly 65% of total revenues.

3. Consumer Products

The consumer products division includes items like fans and other home appliances. This segment generated approximately ₹350 crore in FY 2022-2023, showcasing a healthy growth trajectory as consumers increasingly shift towards branded home products.

4. Revenue Breakdown

Surya Roshni has also focused on expanding its export markets. In FY 2022-2023, international sales accounted for about ₹550 crore, which represents an increase of 25% compared to the previous year. Key markets include the Middle East and Africa, where demand for lighting and steel products continues to grow.

5. Cost Structure and Profitability

The company's cost of goods sold (COGS) stood at approximately ₹3,510 crore for FY 2022-2023, leading to a gross profit margin of around 23%. Operating expenses, including selling, general, and administrative expenses, were about ₹340 crore.

6. Profitability Metrics

In FY 2022-2023, Surya Roshni reported a net profit of approximately ₹445 crore, which translates to a net profit margin of about 9.7%. The return on equity (ROE) for the fiscal year was approximately 15%.

7. Future Outlook

Looking ahead, Surya Roshni Limited aims to further enhance its lighting solutions, particularly within the LED segment, which is expected to see substantial growth driven by increasing demand for energy-efficient products. The company is investing approximately ₹100 crore in R&D to innovate new lighting technologies.

Overall, Surya Roshni Limited's diversified business model, combined with strategic investments in emerging markets and innovation, positions it well for continued revenue growth and profitability.