Cenlub Industries Limited is an **ISO 9001** certified leader in the design, engineering, and manufacture of **Centralized Lubrication Systems** and **Fluid Handling** solutions. Operating within the **Machinery and Machinery Parts** segment, the company serves as a critical **Original Equipment Manufacturer (OEM)** for high-growth industrial sectors. With a focus on **import substitution** and **in-house R&D**, Cenlub is currently transitioning toward a **debt-free** balance sheet while modernizing its infrastructure for large-scale project execution. --- ### **Core Product Verticals & Market Applications** Cenlub provides specialized lubrication and fluid management systems essential for the longevity and efficiency of industrial machinery. * **Machine Tools:** Supplies systems for **CNCs**, Press Tools, and Die Casting machinery. * **Power Sector:** A major manufacturer of **Lube Oil Systems** for captive power plants. Production in this vertical has **more than doubled** recently. * **Oil & Gas:** Provides **CE certified systems** for domestic and international markets, including Europe. This is a high-growth segment with significant recent order bookings. * **Environmental Compliance (FGD):** Specialized **Flue Gas Desulphurization (FGD)** systems for power and heavy industries to meet statutory pollution norms. * **General Industry:** Serves Steel, Cement, Sugar, Paper, Pharmaceutical, and Earth Moving equipment sectors. --- ### **Manufacturing Footprint & Operational Modernization** The company operates two strategic manufacturing hubs to ensure pan-India coverage and reduced logistics costs: * **Faridabad (Haryana):** Serves the North, East, and West Indian markets. Recent expansion includes the acquisition of **Plot No. 235** in Ballabgarh to create a contiguous manufacturing footprint. * **Bengaluru (Karnataka):** Serves the South Indian market. **Operational Upgrades:** * **Intelligent Restructuring:** Existing plant areas are being redesigned to optimize workspace. * **Material Handling:** Added **forklifts and cranes** to shorten project delivery times and improve "on-delivery" performance. * **Digital Transformation:** Implementation of a new **ERP system** for enhanced financial control, inventory management, and HR tracking. --- ### **Strategic Growth & Capital Allocation** Cenlub is executing a multi-year strategy to strengthen its balance sheet and diversify its revenue streams. **1. Debt Reduction & Cash Conservation:** * **Debt-Free Target:** The company is prioritizing internal resource conservation to achieve a **zero-debt status**. * **Dividend Policy:** The Board elected to **skip dividend payments** for FY 2023-24 and FY 2024-25 to redirect cash toward debt repayment and infrastructure. * **Asset Monetization:** Proposed sale of unused property in **Sector-57, Faridabad**, to reduce **Cash Credit (CC)** facilities and interest burdens. **2. Real Estate & Infrastructure Investment:** * In January 2026, the Board approved a **₹9.74 Crore** investment in property, including land in **Faridabad (₹2.30 Crore)** and residential units in **Bengaluru (₹7.44 Crore)** to support future expansion. **3. Product Diversification:** * Management is actively exploring **Non-Lubrication products** to expand the current portfolio beyond its core niche. --- ### **R&D, Technology, and Sustainability** Cenlub distinguishes itself through a **100% indigenous** technology stack, eliminating reliance on foreign licenses. * **In-house R&D:** All developmental activities over the last **three years** were handled by the internal Design and Engineering Team using **3D Design Software**. * **Import Substitution:** Focus on developing domestic alternatives for sophisticated lubrication components. * **Energy Transition:** * Replaced **Diesel Gensets** with **PNG (Piped Natural Gas)** units via Adani Total Gas Ltd. * Transitioned to **LED lighting** and **PWM-based** welding/plasma cutting machines. * **Solar Power:** Installation of a **Solar Power Plant** is currently under active consideration. --- ### **Financial Performance Summary** The company has demonstrated robust top-line growth, with turnover increasing by approximately **40%** in the most recent cycle. | Particulars (₹ in Lacs) | FY 2023-24 (Audited) | FY 2022-23 (Audited) | | :--- | :--- | :--- | | **Total Income** | **7,276.42** | **5,519.93** | | **Profit Before Tax (PBT)** | **1,220.72** | **903.11** | | **Profit After Tax (PAT)** | **897.18** | **666.52** | | **Total Comprehensive Income** | **868.40** | **668.69** | **Capital Structure (as of March 31, 2024/2025):** * **Paid-up Equity Capital:** **₹4,66,28,990**. * **Borrowings:** Fair value recorded at **₹451.90 Lacs** (May 2025). * **Promoter Holding:** **50.91%** (following Sept 2023 reclassification). * **Debt Terms:** CC and Working Capital loans carry a **9% interest rate**, secured by current assets and personal guarantees from three directors. --- ### **Risk Profile & Mitigation** Cenlub manages a complex risk environment tied to industrial cycles and macroeconomic shifts. | Risk Category | Specific Threat | Mitigation Strategy | | :--- | :--- | :--- | | **Market & Liquidity** | Volatility in project-based sectors (Power/Oil & Gas). | Use of **rolling cash flow forecasts** and maintaining headroom in borrowing facilities. | | **Operational** | **High attrition rates** and rising manpower costs. | Workforce motivation programs and **lean manufacturing** to offset costs. | | **Macroeconomic** | Inflation in raw material prices and geopolitical instability affecting exports. | **Material sourcing optimization** and increased business volume to achieve economies of scale. | | **Credit Risk** | Potential default on trade receivables. | Dealing exclusively with **investment-grade** counterparties; annual reviews by the Risk Management Committee. | | **Actuarial** | Longevity and interest rate risks affecting employee benefit plans. | Precise financial planning and alignment with government bond yields. | --- ### **Governance & Management** The company is led by a stable management team with significant skin in the game: * **Madhu Mittal:** Managing Director * **Aman Mittal:** Whole-time Director * **Ansh Mittal:** Whole-time Director & CFO Cenlub maintains **no subsidiaries, joint ventures, or foreign collaborations**, ensuring a clean, simplified corporate structure focused entirely on its core Indian manufacturing operations. All financial reporting complies with **Ind-AS 34** standards.