### **Overview** Andrew Yule & Company Ltd (AYCL) is a diversified Indian industrial group with core operations in **tea production and retail**, **power transformers**, and **industrial fans & engineering solutions**. With deep-rooted heritage and strategic modernization initiatives, AYCL is positioning itself for sustainable, multi-vertical growth by FY32, targeting significant expansion in both domestic and international markets. --- ## **1. Tea Division: Expanding Premium Presence with Sustainability at Core** ### **Market Position & Growth Strategy** - AYCL’s **‘Yule Tea’** brand is recognized for high quality across **orthodox, CTC, green, and specialty teas**, serving both bulk and growing retail segments. - Targeting **7–7.2% CAGR by FY32**, significantly outperforming the industry average of 2.1%, with a goal to **double annual tea production from 100 lakh kg to 200 lakh kg**. - Aims to **increase retail market share from 0.2% to 5% by volume (10 lakh kg)** and capture **10% of exports (~20 lakh kg)** by FY32, generating **INR 120 crore in combined revenue (INR 40 crore retail + 80 crore export)**. - Strong focus on **value-based retail growth**, targeting **10% value share by FY27 (from 0.74%)**. ### **Retail & E-commerce Expansion** - Launched on **Amazon**, enhancing digital footprint. - Achieved **431% YoY revenue growth in FY23** (₹5.11 crore → ₹27.15 crore), with volume up from 1.79 lakh kg to 7.22 lakh kg. - Expanded institutional sales via partnerships with **Canteen Stores Department (CSD)**, **NAFED**, **NACOF**, and **Mother Dairy**. - Intensified **digital marketing** to improve brand visibility and e-market penetration. ### **Sustainability & Quality** - All tea estates located in key regions: **Darjeeling, Dooars, and Assam**, with strong connectivity to auction centers. - Fully certified: **FSSAI, ISO 9001, ISO 22000, Trustea, Rainforest Alliance**, ensuring food safety, quality, and environmental compliance. - Collaborating closely with **Tea Research Association (TRA)** to improve **yield, quality, soil health**, and implement **integrated pest management** and **botanical inputs**. - Adopting **sensor-based technologies** for precision agriculture, process control, and quality assurance. - Ongoing **replanting and rejuvenation programs** to boost long-term productivity despite current yield pressures. ### **Challenges** - **Operational headwinds**: Labor migration, high field vacancies, poor drainage, and delayed inputs due to financial constraints. - Climate vulnerability: Unpredictable rainfall, extreme temperatures, and rising crop diseases (e.g., fusarium, red rust). - Pricing power constrained by **dominance of six major buyers**; rising input costs (fertilizers, coal, gas) not fully recoverable. - Supply-side dependencies influenced by tea production trends in competing nations. --- ## **2. Engineering Division: Industrial Fans – Quality, Retrofitting & Capacity Expansion** ### **Products & Market Position** - Manufacturing **full range of industrial fans (axial & centrifugal)** for critical applications in **steel, cement, power, and infrastructure**. - Recognized for **performance, reliability, and superior quality** compared to peers—key differentiator in capital goods market. - Strong customer base: **SAIL, Tata Steel, JSW, RINL, Ultratech, ACC, NTPC, L&T, ISGEC, Thermax, SMS, IOC, Indian Railways**, and more. - Exports to **14 countries** via Indian EPC contractors (e.g., ThyssenKrupp, Thermax). ### **Retrofitting & Innovation** - Expertise in **retrofitting non-Yule fans** with high-efficiency **Yule impellers**, enabling energy savings and performance upgrades. - Successfully executed retrofits for SAIL-Bhilai (Russian-design casing), SAIL-Bokaro/Durgapur, CCIT Andure, Ultratech, Vikram Cement. - Proprietary **YSBT Series Trough Withering Fan** developed for tea industry with **bidirectional airflow** capability. ### **Production & Infrastructure** - State-of-the-art facility in **Kalyani, West Bengal**, featuring: - High-ceiling sheds, material handling up to **45–100 MT**. - Automated/semi-automated equipment; infrastructure rated among **best in India**. - Current in-house capacity: **INR 70 crore (single shift)** → scalable to **INR 140 crore** with second shift, outsourcing, and modernization. ### **Capacity Expansion & Investment** - Target: Increase **impeller production from 300 to 400 units/year**, supported by **INR 12 crore CAPEX**. - Includes repairing Sheds 1, 2, and 4, adding 100 fans/year → **INR 20–30 crore incremental revenue**. - Previously planned increase to **360 units/year** (CAPEX: INR 2 crore over FY23–25). - **Order backlog**: ₹47.70 crore (as of June 2023); FY23 order booking: ₹54.70 crore (+9.73% YoY). ### **Efficiency & Cost Leadership** - In-house R&D focused on **material optimization, energy efficiency, and import substitution**. - Developed internal alternatives for components (RTDs, actuators, SKF plummer blocks), reducing cost and lead time. - Breakeven target: **INR 45 crore turnover** (unit profitable upon crossing this threshold). ### **Challenges** - **Pricing pressure** from unorganized, low-cost regional players. - **Opaque private procurement practices** limit access to organized tenders. - **Aftermarket sales dominated by informal players**. - Regional gaps: Limited presence in **South India**—active expansion underway. --- ## **3. Electrical-Chennai Operations (E-CO): Power Transformers – Brand Strength & Turnaround** ### **Product & Market** - Manufactures **power transformers (8–31.5 MVA, up to 132 kV class)**, with **testing capability up to 220 kV**. - Market share: **~1.8–2.5%** in 8–63 MVA segment. - Key clients: **Tamil Nadu & Karnataka SEBs**, **SAIL**, **PGCIL, NTPC, NPCIL**, and EPC firms (Bajaj, Sterling & Wilson). ### **Financial & Operational Performance** - Turned **profitable in FY24** after past losses, driven by: - Improved **production efficiency** and **cost control**. - Resolution of long-standing **labor disputes** (strike ended Aug 2020; wage agreement signed Apr 2021). - Secured **record order of INR 84.05 crore** (July 2021), including **INR 56.38 crore from KPTCL** for 23 units. - Order book (as of June 2023): **INR 74.65 crore**; won additional **INR 28.11 crore** in new orders. ### **Quality & Certifications** - **Zero failure rate in transformers over last 3 years**—a major competitive advantage. - Certified under **ISO 9001, CPR, CPRI**, and **NABL lab under development (CAPEX: INR 0.7 crore in FY24–25)** to boost testing capabilities. ### **Expansion Plans** - **CAPEX plans**: - Extend production bay to allow **three parallel lines**. - Install **Vapor Phase Drying (VPD) unit**, **dust-free coil winding enclosures**, and **vertical winding machines**. - Objective: Bid for **larger tenders**, enter **higher-value segments**, and boost **product quality and scale**. --- ## **4. Strategic Diversification: Water Pollution Control (WPC) Projects** - Planning entry into **Water Pollution Control (WPC) segment** starting **FY25–26**. - Leverages rising government and infrastructure spending in **steel, cement, and industrial wastewater management**. - Builds on existing engineering expertise in **fluid dynamics and industrial systems**. --- ## **5. Organizational & Financial Highlights** | Metric | Status | |-------|--------| | **R&D Spend** | INR 13.96 lakh (no imported technology) | | **Key CAPEX Plans (FY24–25)** | - NABL Lab (INR 0.7 Cr)<br> - Fan capacity expansion (INR 12 Cr)<br> - Transformer infrastructure (details undisclosed) | | **Switchgear Unit (Kolkata)** | Underperforming due to obsolescence, low bookings, high labor cost; no recent growth updates |