IPO Bound Shivalic Power Control Limited Is Emerging As A Prominent Player In Electrical Control Panel Manufacturing

Shivalic has forged key OEM partnerships and technical tie-ups with industry giants like Siemens, L&T, Schneider &TDK EPCOS. As authorized manufacturers and sellers of IEC 61439 Panels, with specialized procurement arrangements for switchgear. They hold a unique distinction as the company with tie-ups with all four industry leaders. These partnerships also amplify their bargaining power for bulk purchasing of switchgears, significantly impacting their cost structure.

Served more than 500 Clients & 20+ Industries

Over the past two decades, Shivalic has served over 500+clients in more than 15 sectors, including Data Centre, Steel, Sugar, Papers, Cement, FMCG, and Automobile. Their clientele includes esteemed names such as Hewlett Packard, DCM Shriram, Rungta Mines, and Reliance Cement, among others. 

Certified Self Built Competence & World Class Machining Capabilities

Shivalic’s cutting-edge plant in Faridabad excels in machining, fabrication, and assembly, with optimized processes meeting industry standards. Equipped with advanced machinery, they ensure precise metal processing. Their fully automated Pre-Treatment & Powder Coating facility adheres to industry quality norms. Their facility in Faridabad boasts a production capacity of 10,000 Verticals per annum. Managed by a team of 180 personnel led by experienced professionals, Shivalic’s commitment to excellence ensures rigorous quality control and safety, solidifying their position as a key player in the market.

Future Growth Drivers

Shivalic’s growth is fueled by various factors, including a substantial order book, increased demand for panels, and expansion into the flourishing data centre sector. The company’s focus on value-added products, leveraging economies of scale, and enhancing product quality contributes to its success. Their concentration on export markets, particularly in Africa, has significantly fueled its expansion efforts. With a robust order book of ₹58 Cr coupled with recent successes in cross-border business such as its highest export order of ₹7 Cr from the Mongolia Refinery, Shivalic is poised for continued expansion. 

Rapid Growth Rate

In FY21, the company reported a revenue of ₹52.22 Cr, EBITDA of ₹5.01 Cr, and PAT of ₹0.67 Cr. This was followed by a revenue increase to ₹57.33 Cr in FY22, with EBITDA remaining relatively stable at ₹5.04 Cr and PAT showing an improvement to ₹1.74 Cr. FY23 witnessed significant growth, with revenue soaring to ₹82.15 Cr, EBITDA reaching ₹12.72 Cr, and PAT rising to ₹7.16 Cr. As of 9MFY24, the company recorded a revenue of ₹63.55 Cr, EBITDA of ₹13.09 Cr, and PAT of ₹7.60 Cr, highlighting a sustained growth trajectory and improving profitability over the years.

Shivalic’s remarkable growth trajectory is underscored by its robust financial performance and strategic shifts. Their revenue has increased by approximately 55-60% from FY21 to FY23. A significant driver of this growth is their transition from procuring raw materials from dealers to establishing tie-ups with OEMs, enabling direct sourcing from OEMs. This strategic move has resulted in increased sales volume and higher margin orders, further improving their financial performance. The company is enjoying economies of scale due to the influx of high order volumes, solidifying their position as a key player in the market.

IPO Objectives

The IPO comprises entirely of a fresh issue, offering up to 64,32,000 Equity Shares. The net proceeds will be utilized mainly for working capital needs and a part of it will be used for assembly line setup and facilitating potential inorganic growth through unidentified acquisitions for the Company. This strategic allocation underscores Shivalic’s commitment to sustainable expansion and operational efficiency, ensuring a path to future success and value creation.

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