#### **Executive Summary** Kilburn Engineering Limited (KEL) is a technologically advanced, India-based global provider of **customized industrial drying, thermal engineering, and process equipment solutions**, with over **four decades of experience**. Headquartered in Mumbai and operating manufacturing facilities in **Thane (Maharashtra) and Pune**, Kilburn has strategically transformed into a **comprehensive one-stop solution provider** in the energy and industrial engineering space through **key acquisitions**, **technological integration**, and **global market expansion**. Leveraging **Indian manufacturing cost advantages**, **deep in-house R&D**, and **long-standing customer relationships**, Kilburn is positioned for aggressive growth—targeting a **~50% revenue increase in FY26**, followed by a **25–30% CAGR from FY27 onward**, backed by a robust order book, expanding global footprint, and synergistic portfolio integration. --- ### **Core Business & Strategic Focus** #### **1. Product & Solution Portfolio** Kilburn offers a wide array of **customized industrial drying systems** and **energy efficiency solutions**, including: - **Drying & Calcining Systems**: Rotary dryers, paddle dryers, fluid bed dryers (FBD), vibrating fluid bed dryers (VFBD), spray dryers, flash dryers, band dryers, calciners. - **Industry-Specific Equipment**: Tea dryers, sugar dryers, coconut dryers, sludge dryers, withering systems. - **Energy Systems**: Waste heat recovery (WHR) units, thermal oil heaters, reboilers, biomass-fueled systems, CO₂ solution reboilers. - **Large Fabricated Equipment**: Pressure vessels, reactors, heat exchangers, silos, columns, oil field systems. - **Packaged Systems**: Air/gas/liquid drying systems, gas conditioning systems, solvent/vapor recovery systems, pneumatic conveyors, skids. - **New Product Development**: Silos, conveyor dryers, fluid bed calciners, granulators, rotary vacuum paddle dryers, agitated thin film dryers. Kilburn has evolved from a **product supplier** to a **solution provider**, bundling equipment with balance-of-plant (BOP) and peripheral systems to **increase average order size** and **margin sustainability**. --- ### **Strategic Acquisitions & Integration** Kilburn has executed two transformative acquisitions to broaden its technological depth and market reach: #### **A. Acquisition of M.E. Energy Private Limited (completed: Feb 2024, INR 987 million)** - A leader in **waste heat recovery and reutilization systems**, with 25+ years of experience and 1,500+ global installations across 21 countries. - Key projects include: - **16 MW waste heat-based power plant** for a 200 MW IPP. - **3.5 MW thermal oil heater** and biomass-fueled biscuit ovens supplied to Britannia. - **Synergy**: Combines **ME Energy’s heat extraction** expertise with **Kilburn’s heat consumption (drying) technologies**, enabling integrated energy management systems. - ME Energy now operates as a **wholly owned subsidiary**, serving as Kilburn’s **integrated production hub in Pune** for air preheaters, paddle dryers, and tea dryers. - Positioned to execute single orders worth **₹40–50 crores**. #### **B. Acquisition of Monga Strayfield Pvt. Ltd. (MSPL) (completed: Jan 27, 2025, INR 2,260 million)** - A **global pioneer in Radio Frequency (RF) drying and heating**, founded in 1968, with **4,000+ installations** across six continents. - Offers **low-temperature, high-efficiency drying** for **food, textiles, paper, and fiberglass**, featuring patented **filtered oscillator design**. - Brings **sheet metal fabrication expertise**, especially for **export-oriented US clients**. - Opens **new verticals** in **textiles, packaged foods, basalt fibers**, and **organic food processing** via joint venture with Canada’s Gentle Processing SK. - **RF integration** with Kilburn’s thermal systems enables **hybrid drying solutions** for high-moisture products previously unsuitable for standalone RF—e.g., in **agro-products**. > **Combined Synergy**: > - Customer base integration with **~40% overlap**, enabling cross-selling. > - Technology fusion driving **new market access** in **ceramics, foam, latex, packaging boards, and chemicals**. > - Expected to contribute **₹80+ crore in revenue** and be **margin accretive**. --- ### **Growth Strategy & Market Outlook** #### **1. Revenue & Order Book Growth** - **FY25 Revenue Target**: Exceeded **₹500 crore** (driven by large orders such as the ₹126 crore OCP Morocco export). - **FY26 Outlook**: Expected **~50% consolidated revenue growth**. - **Long-term CAGR**: **25–30% from FY27**, using FY26 as base. - Target of **₹700–750 crores in consolidated revenue within 1–2 years** post-integration. - **Export share goal**: **25–30% of total revenue** within 1–3 years. - **Global drying market**: **$2–4 billion**; Kilburn is a **niche leader** in rotary dryers, calciners, and fluid bed systems. #### **2. Major Orders & Projects** - **Largest Order to Date**: **$15 million (₹126 crore)** for **rotary dryers** exported to **OCP Morocco** (world’s largest rock phosphate producer). - **Cement Sector Breakthrough**: Custom WHR solution for **Shree Cement**, serving as a **reference project** for ₹5,000 crore market opportunity. - **Pharmaceutical Entry**: **Pilot API calciner order** for Granules; future growth dependent on successful trials. - **Waste-to-Energy**: First **sewage treatment-based waste-to-energy order** secured. - **Compressed Biogas**: Entered the **CBG segment** with first project. #### **3. Global Expansion** - Markets: **Africa, Europe, Asia Pacific, Korea, USA, Germany, China, Brazil, South Africa**. - Enquiry Pipeline: - **₹4,000 crores** (as of Aug 2025), up from ₹2,000 crores in 2023. - **$2 billion+ annual project inquiries** from international markets. - Partnerships: - **Komline-Sanderson (KSC), New Jersey**: Signed **Strategic Master Agreement** for **exclusive manufacturing** of **turbo dryers and paddle dryers** globally. - KSC collaboration provides **access to advanced drying tech** and **global customer reach**. --- ### **R&D & Manufacturing Capabilities** #### **R&D Excellence** - **In-house R&D centers** at Thane, Pune, and Bhosari (for MSPL), equipped with **full-scale pilot dryers**: - Paddle, vacuum paddle, fluid bed, vibrating fluid bed, band, and flash dryers. - Focus areas: - Hybrid drying (RF + thermal) - Energy efficiency (e.g., reduced fuel consumption by 50% for Britannia) - Process optimization for **APIs, marigold flowers, seaweed, paddy straw** - **Collaborations**: Nara Machinery (Japan), Carrier (USA), Emde Industrietechnik (Germany), Idreco (Italy) #### **Manufacturing Infrastructure** - **Thane Facility**: 30,960 sqm (8 acres), four production bays, EOT cranes, vertical turret lathes, titanium clean room. - **Pune (M.E. Energy)**: 5-acre facility, expandable to support two additional bays. - **Bhosari (Monga Strayfield)**: Three state-of-the-art units, including R&D and sheet metal fabrication. - **Materials Expertise**: Carbon steel, stainless steel, Inconel, Hastelloy, Monel, Titanium, duplex, nickel alloys. - Hybrid model: **In-house manufacturing of critical components + qualified vendor network** for scalability. --- ### **Market Position & Competitive Advantage** #### **Sector Diversification** Kilburn serves over **15 industries**, reducing reliance on any single vertical: - **Core**: Carbon black, tea, fertilizers, chemicals, petrochemicals. - **Growth Sectors**: Cement (WHR), pharmaceuticals (API), steel, nuclear, oil & gas, waste-to-energy, food & FMCG. - **New Frontiers**: Biomass drying, CBG, offshore platforms, ceramics, textiles. #### **Competitive Edge** - **Four decades of technical know-how** and **350+ proprietary welding procedures** for exotic alloys. - **Early engagement model**: Works with clients from **project conceptualization**, securing loyalty. - **Not price-competitive but value-competitive**: Focus on **engineering excellence, quality, and custom integration**. - **No peer offers full spectrum**—Kilburn is one of the few globally with **solid, liquid, gas drying under one roof**. #### **Key Competitors by Segment** - **Carbon Black**: Arvos, Doright (China) - **Soda Ash**: Andritz, Chinese players - **Paddle Dryers**: Raj Process, Mojj, Arrowhead - **FBDs**: GEA Process - **WHR Systems**: Thermax - **RF Technology**: None with same scale as Monga Strayfield --- ### **Financial & Operational Highlights** - **Order Book**: ₹409 crores (as of Feb 2025); secured order book consistently **exceeding ₹200 crores**. - **Enquiry Pipeline**: Over **₹4,000 crores** consolidated (group-wide), with **Africa, Europe, and Korea** emerging strongly. - **Export Revenue**: Growing traction in **USA, Germany, China, Indonesia, South Africa**; higher margin potential. - **Capex**: Incremental investments in **titanium clean room, advanced rolling, and pilot testing**; no major expansion capex planned post recent acquisitions. - **Aftermarket Revenue**: Currently ~5%, but scope for growth via spares, service contracts.