Loyal Equipments Limited is a premier Indian industrial engineering firm specializing in the **design, manufacturing, supply, and commissioning** of specialized process equipment. Operating as a single-segment entity focused on **Industrial Equipment**, the company serves as a critical partner to the global capital goods sector, maintaining a **SMERA SME 2** credit rating and prestigious **ASME ‘U’ & ‘U2’** certifications. --- ### **Core Product Portfolio & Technical Specialization** Loyal Equipments manufactures high-precision, customized equipment from steel and non-ferrous materials, adhering to stringent international safety and quality standards. * **Heat Transfer Equipment:** * **Air-Cooled Heat Exchangers:** Designed to dissipate heat from fluids to air, enhancing energy efficiency. * **Shell & Tube Heat Exchangers:** Engineered for high-pressure and high-temperature transfers in refineries and HVAC systems. * **Air Fin Cooler Assemblies:** Advanced solutions focused on thermal efficiency and supporting **renewable energy** applications. * **Pressure Assets:** * **Pressure Vessels (CS & SS):** High-specification vessels for volatile industrial processes. * **Pressure Receivers & Storage Tanks:** Specialized containers for industrial gases and fluids. * **Modular Systems & Skids:** * **Process & Auxiliary Skids:** Lube oil consoles, cooling water consoles, and PSA-skids. * **Air Separation Unit (ASU) Skids:** Integrated modular packages for gas separation. * **Structural Components:** * Heavy structural items, chimneys, base plates, and specialized consignment packaging tailored to customer specifications. --- ### **Operational Infrastructure & Quality Compliance** The company’s operations are centralized at a high-tech integrated manufacturing facility in Gujarat, designed to handle complex engineering requirements. | Feature | Details | | :--- | :--- | | **Location** | Village-Zak, Dahegam, Dist.- Gandhinagar, Gujarat | | **Total Land Area** | **28,500 sq. meters** | | **Infrastructure Area** | **3,526 sq. meters** (plus **136 sq. meters** office space) | | **Key Machinery** | CNC Plasma Cutting, McElroy Fin Tube Machine, Plate Rolling, SAW Welding, In-House Modular Furnace, and EOT Cranes | | **Design Capabilities** | Member of **Heat Transfer Research Inc (HTRI)**; utilizes advanced engineering software | **Certifications & Third-Party Oversight:** * **ASME Certification:** Authorized for **'U'** and **'U2'** stamps (essential for high-pressure vessel manufacture). * **National Board:** Authorized for **'NB'** and **'R'** marks. * **Quality Management:** **ISO 9001:2015** certified. * **Inspection Partners:** Products undergo rigorous testing by **Lloyds, BV, SGS, and TUV**. --- ### **Strategic Market Presence & Blue-Chip Clientele** Loyal Equipments operates a **B2B customized manufacturing model**, engaging in the entire lifecycle from initial design to site installation. * **Key Sectors:** Oil & Gas, Petroleum, Chemicals, Fertilizers, Power, Steel, Pharmaceuticals, and Dairy. * **Strategic Registrations:** Registered supplier for **Engineers India Limited (EIL)** and **GSPL**. * **Major Clients:** **IOCL, ONGC, Reliance Industries, Linde Engineering, L&T, Tata Projects, and Siemens Energy**. * **Recent Order Book Activity:** Secured significant purchase orders from **Linde Engineering (February 2025)** and **Indian Oil Corporation Limited (IOCL) (November 2025)** for Air Fin Cooler Assemblies. --- ### **Financial Performance & Capital Structure** The company has demonstrated consistent upward momentum, characterized by steady revenue growth and expanding net profitability. **Standalone Financial Summary:** | Metric (Rs. in Crore) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Revenue from Operations** | **75.30** | **70.82** | **49.29** | | **Revenue Growth (YoY)** | **6.32%** | **43.67%** | **52.81%** | | **Profit Before Tax (PBT)** | **13.59** | **9.50** | **6.24** | | **Net Profit (PAT)** | **10.66** | **7.09** | **5.98** | **Capital Management:** * **Equity Expansion:** In **October 2024**, the company executed a preferential issue of **5,90,000 Equity Shares** at **Rs. 211 per share** (including a **Rs. 201 premium**), raising **Rs. 12.45 Crore**. * **Dividend Policy:** The Board recommended a final dividend of **Rs. 1 per equity share (10%)** for FY 2024-25. * **Debt Profile:** Short-term borrowings of **Rs. 10.17 Crore** are managed via **HDFC Capex Loans** at an interest rate of **8.65% p.a.**, secured by hypothecation of stock and book debts. --- ### **Future Growth Strategy & Diversification** Loyal Equipments is transitioning toward a world-class operational unit through aggressive capacity and market expansion. * **Capacity Expansion:** Construction of an **additional manufacturing bay** and a **new workshop** is underway, funded by recent capital raises (**Rs. 8.00 Cr** allocated for FY 24-25; **Rs. 4.66 Cr** for FY 25-26). * **Green Energy Pivot:** Signed a **non-binding MOU** with **F2N Green Hydrogen Sri (Italy)** in **April 2025** to explore the green hydrogen sector. * **Global Footprint:** Plans to establish a **marketing office in the UAE** and a long-term objective of a **manufacturing plant in the USA**. * **Digital Integration:** Implementing **IoT and smart systems** into product lines to enhance industrial efficiency. --- ### **Market Outlook & Sector Projections (2024-2032)** The company is positioned to capture growth in high-value industrial segments: | Product Segment | Projected Growth (CAGR) | Target Market Size (Year) | | :--- | :--- | :--- | | **Pressure Vessels** | **4.5%** | **USD 62.7 Billion** (2028) | | **Heat Exchangers** | **5.8%** | **USD 1,370.4 Million** (2032) | | **Modular Process Skids** | **5.2%** | **USD 140.62 Billion** (2030) | | **Auxiliary Skids** | **3.4%** | (2024-2032 Period) | --- ### **Risk Profile & Mitigation Framework** The company manages a complex risk landscape through a Board-approved policy and internal audit oversight. * **Financial Risks:** Exposure to **foreign exchange volatility (USD)** and **interest rate fluctuations** is managed through sensitivity analysis. Credit risk is mitigated by a high concentration of **Government undertaking** clients. * **Operational Risks:** Vulnerability to raw material price swings and long gestation periods for capital-intensive projects. * **Leadership Transition:** Following the **demise of a key Promoter** in **September 2024**, the company has stabilized leadership with the appointment of **Mr. Rishi Roop Kapoor (CEO)** and the re-appointment of **Mr. Alkesh Rameshchandra Patel (MD)** for a **5-year term** starting **September 2025**. * **Competitive Landscape:** Faces pressure from both large-scale global players and local entrants; countered by specialized engineering expertise and long-term blue-chip relationships.