Baroda Extrusion Limited (**BEL**), established in **1991**, holds the distinction of being the first public-listed company in India’s copper extrusion sector. Headquartered in **Vadodara, Gujarat**, the company is a specialized manufacturer of high-grade copper products, primarily serving **Original Equipment Manufacturers (OEMs)** in the electrical, automotive, and thermal management sectors. After a period of significant financial distress, the company is currently undergoing a strategic transformation characterized by debt resolution, capital infusion, and a transition toward **Industry 4.0** manufacturing standards. --- ### **Core Manufacturing Capabilities & Infrastructure** BEL operates a specialized manufacturing facility at **Village Garadhiya, Vadodara**, spanning **12,724 sq. mtrs**. The plant is strategically located to serve the industrial hubs of Western India. **Technical Specifications:** * **Installed Capacity:** **3,600 MT** per annum. * **Primary Equipment:** A **900 MT Extrusion Press**, a **1 M.T / Hr Induction Furnace**, and **25 units** of heavy, medium, and light draw benches. * **Thermal Processing:** Utilizes **gas-fired bright annealing furnaces** for copper coils, ensuring precise temperature control and cost optimization. * **Technological Innovation:** Developed specialized **Nitrogen Systems** to maintain operational continuity under challenging environmental conditions. --- ### **Product Portfolio & Market Specialization** The company operates in a single reportable segment: **Copper Manufacturing**. It has transitioned from commodity copper products to high-value, bespoke engineering solutions. | Product Category | Details & Applications | | :--- | :--- | | **Enamelled Copper Pipe/Tube** | The flagship product, accounting for **~70%** of total production in FY 24-25. | | **Specialized Wires** | Includes **Corona-resistant wires**, paper-covered wires, submersible winding wires, and litz wires. | | **Structural Copper** | Copper Rods, Bus Bars, Flats, Billets, and Mother Tubes. | | **Advanced Profiles** | Precision-engineered **Copper Sections** and sealing segments for industrial machinery. | **Target Industries:** * **Primary:** Air conditioning, Refrigeration, Power, and Electrical sectors. * **Growth Frontiers:** **Electric Vehicles (EV)** (cooling elements), Aerospace, Defense, and Healthcare. --- ### **Strategic Turnaround & Industry 4.0 Integration** BEL is executing a multi-year strategy to modernize operations and expand its market footprint. * **Digital Transformation:** The company is adopting **Industry 4.0** standards by digitizing manual machine controls and integrating real-time I/O data analysis. This includes **Time Data Analysis** to minimize downtime. * **R&D Focus:** Development of high-performance cooling elements using advanced software tools to optimize field performance for OEMs. * **Market Expansion:** A strategic shift toward **deemed exporter customers** and the **EV supply chain** to capture higher margins. * **Sustainability:** Initiatives to develop "green" manufacturing practices and environmentally friendly products to reduce the corporate carbon footprint. --- ### **Financial Performance & Recovery Metrics** FY 2024-25 marked a pivotal turnaround year for BEL, characterized by a return to profitability following a major debt settlement. **Key Financial Indicators:** * **Revenue (FY 24-25):** **₹159.19 Crores** (up from ₹127.80 Cr in FY 23-24). * **Profit After Tax (PAT):** **₹19.72 Crores** (reversing a loss of ₹1.11 Cr). * **EBITDA Margin:** **13.70%**. * **Production Volume:** **1,714 tonnes**, a **7.93%** year-on-year increase. * **Asset Quality:** Reduced **Allowance for Doubtful Debts** from **63.41%** to **14.89%**. **Revenue Concentration:** Operations remain almost exclusively domestic, with **India** accounting for **99.99%** of total sales. --- ### **Capital Restructuring & Debt Resolution** To address a historical **negative net worth**, BEL has implemented a comprehensive financial restructuring plan. **1. One-Time Settlement (OTS):** In **October 2024**, the company settled liabilities of **₹44.35 Crores** with **M/s Brijlaxmi Leasing and Finance Limited** (assignee of **SICOM Ltd**) for a final payment of **₹25.51 Crores**. This resulted in an exceptional gain of **₹18.84 Crores** and the release of all mortgage charges on fixed assets. **2. Preferential Equity Issue:** The company initiated a capital raise of approximately **₹37.40 Crores** at **₹8.25 per share**: * **₹20.00 Crores:** Conversion of unsecured loans from Promoter **Parasmal Kanugo**. * **₹17.40 Crores:** Fresh cash infusion from Non-Promoter groups. * **Impact:** Increased Paid-up Capital to **₹19.44 Crores** and enhanced borrowing limits to **₹100 Crores**. --- ### **Risk Profile & Governance Challenges** Despite the recovery, several material risks and audit qualifications persist: * **Going Concern Uncertainty:** While management projects a return to sustained profitability within **2-3 years**, the historical erosion of net worth remains a critical concern. * **Audit Qualifications:** * **Deferred Tax Assets (DTA):** Auditors question the recognition of **₹2.93 Crores** in DTA, citing a lack of "reasonable certainty" regarding future taxable profits. * **Regulatory Non-compliance:** The company held customer advances of **₹64.86 Lakhs** for over **365 days**, violating **Section 73 of the Companies Act, 2013**. * **Internal Controls:** Weaknesses identified in the maintenance of **Property, Plant, and Equipment** records and physical verification processes. * **External Pressures:** High sensitivity to **Copper price volatility**, currency fluctuations affecting raw material costs, and intense competition in the enameled wire market (projected **8% CAGR** through 2030). * **Historical Legacy:** The company was previously subject to a **SEBI-mandated forensic audit** (2015-2018) following its inclusion in the MCA list of shell companies. --- ### **Corporate Structure & Leadership** * **Management:** Led by **Parasmal Kanugo** (Managing Director) and **Alpesh Kanugo** (Whole Time Director & CFO). * **Subsidiaries:** Two wholly-owned subsidiaries—**Shakambhari Dyechem Private Limited** and **Shakambhari Chemtech Private Limited**. * **Shareholding:** Total equity shares stand at **14,90,49,000**, with **91.81%** held in dematerialized form. * **Workforce:** **655 employees** as of March 2024.