### **Overview** Chemtech Industrial Valves Ltd (CIVL), established in 1997 and headquartered in Thane, Mumbai, is a leading Indian manufacturer of industrial valves with over 28 years of domain expertise. The company specializes in engineering and manufacturing highly reliable, application-specific valves for critical industrial environments, serving key sectors such as **Steel, Power, Oil & Gas, Chemicals, Fertilizers, Water Treatment (WTP/ETP/STP), and Renewable Energy**. With a strong export presence—including in Russia—CIVL has built a reputation as an innovator and trusted solution provider. --- ### **Business Model & Revenue Mix** - **Core Business Segments**: - Manufacturing of Industrial Valves (100% of FY 2024–25 revenue) - Trading of project-specific materials (inactive in recent fiscal year) - **Revenue Split**: - ~50% from **conventional valves** - ~50% from **specialized, engineered valves**, offering balanced exposure across industrial applications. The company is shifting the paradigm from a product supplier to a **full-scale flow control solution partner**, offering custom-designed, automated, and modular flow systems tailored to client needs. --- ### **Key Growth Drivers** 1. **Expansion in India’s Steel Industry**: - India’s National Steel Mission aims to increase steel production capacity from ~140 MTPA to **300 MTPA by 2030**, triggering an estimated **Rs. 3 lakh crores in capital expenditure** over the next 5–7 years. - Industrial valves account for **1–1.5% of project CAPEX**, creating a multi-billion-dollar opportunity that CIVL is well-positioned to capture. - CIVL supplies all major Indian integrated steel plants: **JSW Steel, Tata Steel, SAIL, Jindal Steel & Power, and ArcelorMittal Nippon Steel India (AMNS)**—ensuring strong revenue visibility for the next 3–5 years. 2. **Government Initiatives**: - **"Make in India"** policy support is accelerating domestic manufacturing and import substitution. - Large-scale public investments in **infrastructure (roads, railways, smart cities, ports)** are driving steel demand, which in turn fuels valve requirements. 3. **Technological Innovation & Differentiation**: - **Patented Line Blind Valves**: A breakthrough in **man-safe, zero-leakage pipeline isolation** that enables 100% isolation within minutes, without cranes or tools. - Sizes currently available: **DN 100 mm to DN 900 mm**; under development: **DN 1500 mm** for high-pressure/high-temperature applications. - Offers **40–60% savings in OPEX** during plant shutdowns due to reduced labor, downtime, and safety risks. - Validated in critical gases: **Coke Oven Gas, Blast Furnace Gas, LD Gas, SO₂, SO₃, Nitrogen**. - Adopted by top steel producers: **Tata Steel, JSW, JSP, Kalyani Steels**. - Over **100 units supplied** since patent grant (FY2023), with plans for **plant-wide deployments**. - **Line Blind Benefits**: - Single-operator use, CAM-operated swing mechanism, self-balancing elliptical plate, and center-lock to prevent leaks or human error. - Supports **ESG goals** by minimizing emissions, fluid loss, and energy use. - Cost savings exceed **90%** in pipeline blanking operations compared to traditional methods. - **Other Patented Innovations**: - **Jansen-Type Dashpot Check Valves**: Prevent water hammer; supplied to large fertilizer and steel plants (e.g., DN 1000 mm valve supply). - **Triple-Offset Butterfly Valves (TOBVs)**: Fire-safe, zero-leakage, long service life—ideal for critical services. - **DN 3000 mm Double Offset Butterfly Valve**: Supplied for flare stack service, 12 tonnes per unit, engineered to compete globally. 4. **Market Expansion Beyond Steel**: - **Power**: Leveraging captive power plant valve expertise to enter **thermal, nuclear, and renewable energy** (solar, battery, hydrogen). - **Chemicals**: Handling **corrosive and hazardous gases** with specialized metallurgies (duplex, super duplex, special alloys). - **Water & Infrastructure**: Expanding WTP/ETP/STP valve solutions into **cement, chemicals, and urban infrastructure**. - **Emerging Segments**: Entering **HVAC, firefighting, data center cooling**, and **green hydrogen manufacturing**. --- ### **Manufacturing & Operational Strength** - **State-of-the-Art Facility**: - Located in **Wada (130,000 sq. ft. plot; 70,000 sq. ft. built-up)**, ~50 km from Mumbai. - Features: - 53-foot high fabrication shed with **six EOT cranes (up to 20T lifting capacity)**. - 6-inch Trimex flooring with **50 MT load-bearing capacity**. - Integrated capabilities: **fabrication, machining, hydrotesting, assembly** under one roof. - Designed to produce **large-diameter, heavy-duty valves** (e.g., DN 2500 mm gate valve, DN 3000 mm butterfly valve). - **Supply Chain Resilience**: - Secure access to raw materials, utilities, and skilled labor. - Proximity to logistics hubs: **Kalyan (40 km), JNPT Port (75 km), Bhiwandi Truck Terminal (20 km)**. --- ### **Customer & Market Positioning** - **Strategic Clientele**: - Long-standing relationships with all major **steel plants**, **EPC contractors** (including **Larsen & Toubro**), and government entities. - Recognized as a key supplier: Over **₹35 crores in business with Tata Steel over 3 years**. - **Vendor Approvals**: - Approved by all top Indian steel and industrial players for **critical, high-risk applications**. - **After-Sales & Commissioning**: - Dedicated on-site support for **goggle valves and complex systems**, enabling plug-and-play commissioning. - Enhances reliability and strengthens customer trust. --- ### **Product Portfolio & Automation** - **Core Valve Types**: - Butterfly (concentric, double/triple offset) - Gate, Globe, Ball, Control Valves - Goggle Valves (market leader for man-safe isolation) - **Automation-Ready Solutions**: - Pneumatic, hydraulic, and electric actuated valves. - Integration with **SCADA/DCS systems** for smart plant operations. - Focus on **remote monitoring, precision control, energy efficiency**. --- ### **Strategic Expansion & Growth Outlook** - **Diversification**: - Transitioning from **MRO (maintenance)** to **greenfield project inclusion**, indicating engineering acceptance. - Recent supply of **Line Blinds for a greenfield blast furnace project**. - **New Customer Wins**: - Added marquee clients: **L&T and AMNS India**, generating multi-crore revenue in first year. - **Revenue Target**: - Aiming for **Rs. 250 crore by FY2029–30**, driven by: - **Organic growth** through product innovation and sector diversification. - **Inorganic expansion** opportunities in the broader engineering space. --- ### **Differentiators & Competitive Edge** 1. **Innovation-Centric Culture**: Develops proprietary solutions based on customer pain points (e.g., Line Blind, Dashpot Valve). 2. **End-to-End Capabilities**: In-house **design, manufacturing, testing, commissioning**—reduces import dependency and lead times. 3. **Reliability & Safety**: Strict **QA/QC protocols**, third-party inspections, and material traceability. 4. **Customization**: Delivers **import substitute**, application-specific valves optimized for harsh environments. 5. **Strategic Location & Scalability**: Proximity to Mumbai with logistical and infrastructural advantages.