Krypton Industries Limited is an established Indian manufacturer and trader specializing in **Polyurethane (PU)** based applications. The company has built a diversified portfolio spanning **MCP Tubeless Tyres**, **Rehab Care (Medical Mobility)**, and **PU Footwear**. Operating through **six manufacturing units** in West Bengal (**Falta SEZ, Bangnagar, and Sadhurhat**), the company integrates direct manufacturing with strategic job work for major **Original Equipment Manufacturers (OEMs)**. --- ### **Core Business Segments & Revenue Performance** The company’s operations are categorized into three primary reportable segments. While the Engineering and Wheel divisions show robust profitability, the Tyre and Footwear divisions have faced recent headwinds. #### **Segmental Financial Overview (FY 2024-25)** | Division | Key Products/Services | Revenue | Profit/Loss (PBT) | | :--- | :--- | :--- | :--- | | **Engineering** | Industrial components & services | **₹ 29.13 Cr** | **₹ 85.04 Lakhs*** | | **Wheel** | Captive unit & external sales | **₹ 16.17 Cr** | **₹ 2.14 Cr** | | **Sadhurhat** | MCP Tubeless Tyres, Rehab Care | **₹ 12.86 Cr** | **₹ 2.09 Cr** | | **Plastic** | Rims and components | **₹ 3.28 Cr** | **₹ 59.66 Lakhs** | | **Footwear** | PU Soles, Sandals, Chappals | **₹ 2.99 Cr** | **₹ (65.29) Lakhs** | | **Tyre** | Export-oriented tubeless tyres | **₹ 51.01 Lakhs** | **₹ (255.76) Lakhs** | *\*Engineering profit reflects a significant turnaround from a prior year loss of ₹ (260.87) Lakhs.* --- ### **Strategic Pivot: Rehab Care & Medical Mobility** Krypton is aggressively transitioning its focus toward the **Rehab Care** sector, leveraging the Indian government’s push for healthcare infrastructure and support for the "**Divyang**" (disabled) population. * **Brand Portfolio:** Products are marketed under the premium **"iCare"** brand and the affordable **"UDAAN"** line. * **Product Range:** Includes folding wheelchairs, commode chairs, walkers, crutches, rollators, and specialized PU foam components. * **Quality Benchmarks:** The company holds **ISO 9001-2015** and **ISO 13845** certifications. Crucially, it has secured the **BIS license (IS 7454)** for folding adult wheelchairs, a prerequisite for high-value government, defense, and NGO tenders. * **Market Expansion:** The company is targeting the **U.S. market** to leverage advanced healthcare infrastructure and has signed a supply agreement with the **West Bengal State Multipurpose Consumers' Cooperative Federation Ltd. (CONFED)**. --- ### **Advanced Polymer Engineering: Tyres & Footwear** Krypton specializes in high-performance synthetic substitutes for traditional rubber, focusing on **Polyurethane (PU)** and **Micro Cellular Polyurethane (MCP)**. * **MCP Tubeless Tyres:** Developed as a puncture-proof, high-performance substitute for rubber tyres in the bicycle and rickshaw industries. Krypton faces **no direct competitors** in India for certain specialized PU tyre applications. * **Industrial Applications:** Production of solid PU tyres for industrial use and complete wheel assemblies (rims + tyres). * **Footwear & Components:** Manufacturing of PU shoe soles and sandals. To counter a slowdown in the footwear industry, the company is diversifying into **Safety Shoes** (currently undergoing **BIS certification**) and other specialized polymer products like furniture parts and toys. --- ### **Corporate Restructuring & Global Strategy** The company has recently realigned its corporate structure to focus on domestic growth and export-led models rather than direct international subsidiaries. * **Subsidiary Updates:** * **TCB Industries Private Limited:** A **100% wholly-owned subsidiary** (est. June 2023) dedicated to trading wheelchairs and hospital equipment. * **Krypton Tyres Limited:** A new subsidiary incorporated on **February 26, 2026**. * **Krypton Europe S.R.O. (Czech Republic):** Liquidated and sold in **February 2025**, marking an exit from direct European operations to reduce overhead. * **New Business Interests:** Per the **September 2024 Memorandum of Association**, the company is exploring assembly/repair of **Electronics (ACs, Washing Machines)** and the **Electric Vehicle (EV)** space (E-bikes and scooters). * **Pharma Distribution:** Krypton has entered a licensing agreement with **Gan & Lee Pharmaceuticals** for the exclusive Indian distribution of **Bofanglutide**, a **GLP-1 receptor agonist** for diabetes and weight management. --- ### **Financial Health & Capital Structure** Krypton maintains stability through a "cash and carry" sales model and diversified credit lines. #### **Debt Profile & Credit Facilities (FY 2024-25)** | Facility Type | Institution | Amount | Interest Rate | | :--- | :--- | :--- | :--- | | **Cash Credit** | Bank of Baroda | **₹ 7.40 Cr** | **9.60%** (Floating) | | **Term Loan** | Bank of Baroda | **₹ 6.00 Cr** | **9.40%** (Floating) | | **Packing Credit** | Bank of Baroda | **₹ 6.00 Cr** | **9.40%** (Floating) | | **SBLC Loan** | Bank of Baroda | **₹ 3.65 Cr** | Not Specified | | **Business Loan** | ICICI Bank | **₹ 60.00 Lakhs** | **13.75%** (Fixed) | * **Inventory Management:** Total inventory is valued at **₹ 16.44 Cr** (approx. **35.10%** of turnover). High inventory levels are a **Key Audit Matter** due to the complexities of Net Realizable Value (NRV) estimation. * **Shareholder Returns:** The company declared a final dividend of **Re. 1 per equity share** (Face Value **₹ 10**) for FY24. * **Growth Target:** Management has projected a **15% CAGR** for the period **2025–2028**. --- ### **Risk Factors & Mitigation Strategies** #### **Operational & Macroeconomic Risks** * **Input Costs:** Raw material prices have surged over **70%** from pre-pandemic levels. Krypton is mitigating this through **machine upgrades** and **manpower optimization** to reduce labor and power costs. * **Competition:** The Tyre division faces pricing pressure from cheaper rubber alternatives, while the Rehab segment competes with low-cost Chinese imports. * **Currency Exposure:** The company has unhedged **USD/INR** exposure due to raw material imports. A **5% depreciation** of the Rupee results in an estimated loss of **₹ 3.93 Lakhs**. #### **Regulatory & Compliance Risks** * **Stock Exchange Status:** The company is currently **suspended from the Calcutta Stock Exchange (CSE)** for non-payment of fees. * **SEBI Compliance:** Demat accounts of Promoters/Directors are currently **frozen** due to non-compliance with **Regulation 32(1)** of SEBI Delisting Regulations. * **Labour Codes:** The company has recognized the estimated financial impact of the four new **Central Labour Codes** as an **Exceptional Item** in its FY25 accounts. #### **Credit Risk Management** While much of the business is "cash and carry," the company has seen an increase in **Expected Credit Loss (ECL)** provisions: * **Opening ECL (April 2024):** **₹ 42.33 Lakhs** * **Closing ECL (March 2025):** **₹ 86.87 Lakhs** --- ### **Governance & Human Capital** * **Leadership:** **Mr. Jay Singh Bardia** has been re-appointed as Managing Director through **December 2030**. **Mr. Digvijay Singh Bardia** serves as Whole Time Director. * **Talent Retention:** The company implemented the **ESOP 2024 Scheme** to align employee interests with long-term growth. * **Workforce:** Directly employs **156 persons** on payroll, supporting over **160+ indirect jobs**.