Raw Edge Industrial Solutions Limited is a leading Indian manufacturer and supplier of industrial minerals, primarily focused on the lime sector. Operating from a fully integrated setup in Gujarat, the company serves critical industrial applications including steel, water treatment, chemicals, and construction. In **2025**, the company initiated a strategic pivot to transform into a diversified conglomerate, expanding into agricultural commodities and infrastructure materials. --- ### **Core Industrial Mineral Operations & Revenue Streams** The company operates an integrated manufacturing facility at **Nana Borsara, Surat (Gujarat)**, featuring large-scale grinding and **Hydrated Lime** plants. While the company reports under a single operating segment (**IND AS 108**), its revenue is derived from three distinct activities: * **Manufacturing & Trading:** Production of high-quality **Hydrated Lime**, **Calcined Lime**, **Quick Lime**, **Lime Fines**, **Dolomite**, **Quartz**, and **Gypsum**. * **Value-Added Products:** Specialized offerings including **AAC grade Lime** and nutritional ingredients for industrial processes. * **Logistics Services:** An in-house **transportation division** that supports the supply chain, ensuring material delivery and operational synergy. #### **Product-Wise Revenue Performance** | Particulars | FY 2023-24 Revenue (INR) | FY 2023-24 (%) | FY 2022-23 Revenue (INR) | FY 2022-23 (%) | | :--- | :--- | :--- | :--- | :--- | | **Hydrated Lime** | **33,20,09,231** | **73.83%** | **41,32,19,853** | **78.22%** | | **Transportation Revenue** | **5,48,06,062** | **12.19%** | **7,65,09,504** | **14.48%** | | **Others** | **6,28,64,500** | **13.98%** | **3,85,62,839** | **7.30%** | | **Total** | **44,96,79,793** | **100%** | **52,82,92,196** | **100%** | --- ### **Strategic Diversification: 'Raw Edge Agro' and Infrastructure** In **2025**, the company expanded its constitutional objects to capitalize on market scalability in non-mineral sectors. This transition aims to offset volume fluctuations in the industrial sector and target higher-margin niche markets. * **Agro & Food Products:** The newly established **'Raw Edge Agro'** division focuses on the trading and distribution of cereals, pulses, spices, edible oils, dairy products, and food additives. As of **May 2025**, the company is actively developing procurement channels and vendor networks. * **Building & Construction Materials:** The company has entered the supply chain for infrastructure inputs, including **cement, RMC (Ready Mix Concrete), fly ash, aggregates, structural steel, and paints**. --- ### **Operational Efficiency and Sustainability Initiatives** To combat inflationary pressures and rising electricity costs, the company has invested in renewable energy to power its **Panoli, GIDC** operations. | Project | Capacity | Estimated Payback | Expected Lifespan | | :--- | :--- | :--- | :--- | | **Rooftop Solar PV Plant** | **575 KW** | **3 Years** | **25 Years** | **Key Impact:** Following the **3-year** payback period, the solar installation is projected to provide **22 years** of "free" electricity, significantly enhancing bottom-line margins and reducing the carbon footprint associated with lime processing. --- ### **Financial Performance and Capital Structure** The company transitioned from a turnaround in **FY 2022-23** to a challenging **FY 2023-24**, impacted by global economic volatility and non-recurring expenses. #### **Three-Year Financial Summary (Standalone)** | Particulars (INR) | FY 2023-24 | FY 2022-23 | FY 2021-22 | | :--- | :--- | :--- | :--- | | **Total Revenue** | **44,99,37,699** | **52,84,13,022** | **44,73,66,472** | | **EBIDTA** | **3,07,88,227** | **3,74,76,734** | **3,38,20,905** | | **Net Profit / (Loss) (PAT)** | **(58,56,629)** | **2,26,211** | **(56,51,929)** | #### **Key Financial Ratios (FY 2023-24)** * **EBTIDA Margin:** **6.85%** (vs **7.09%** in FY23) * **Net Profit Margin:** **-1.30%** * **Debt Equity Ratio:** **1.06** * **Current Ratio:** **1.61** (Improved from **1.49** in FY23) * **Interest Coverage Ratio:** **0.65** #### **Capital and Shareholding** * **Authorized Share Capital:** Increased to **₹11.10 Crore** (divided into **1.11 Crore** equity shares of **₹10** each) in **September 2023**. * **Dematerialization:** **100%** of the **1,00,58,400** equity shares are held in demat form. * **Dividend Policy:** The Board opted to retain earnings for **FY 2022-23** to fund expansion rather than declaring dividends. --- ### **Human Capital and Talent Retention** To align employee interests with long-term shareholder value, the company implemented the **REISL ESOP 2023** plan: * **Pool Size:** Maximum **1,000,000 (Ten Lakh)** equity shares. * **Individual Limit:** Maximum **100,000** options per employee per year. * **Vesting:** Options must be exercised within **1 year** after the vesting period ends. --- ### **Debt Profile and Credit Facilities** The company utilizes a mix of secured working capital and asset-backed term loans: * **Working Capital:** Cash Credit and **DLOD** facilities from **Axis Bank** and **Federal Bank**, secured by current assets and mortgages on factory land in Surat. * **Term Loans:** Includes a **GECL** loan at **9.25% p.a.** and an **Axis Bank** term loan at **9.00% p.a.** * **Asset Financing:** Specialized loans for a **JCB Robot Skid Steer Loader**, **3DX Backhoe Loader**, and **Hydra ACE 15XW**. * **Guarantees:** **100% personal guarantees** provided by directors **Bimal Bansal**, **Sourabh Bansal**, and **Siddharth Bansal**. --- ### **Risk Management and Governance Framework** The company manages a multi-tiered risk environment through an internal control system overseen by the **Audit Committee**. * **Strategic & External Risks:** Management monitors the risk of failing to meet client expectations or budget targets, alongside external threats like **economic downturns** and **regulatory shifts**. * **Operational & Safety Risks:** Focus on mitigating **dust emissions** and **sludge** environmental challenges. Safety is managed via strict **PPE** protocols on the shop floor. * **Compliance Observations:** A **1.5% variation** was noted between provisional quarterly statements filed with banks and audited books (reported in **CARO**). However, no adverse remarks were noted regarding **Direct/Indirect Tax** or **Labour Laws** as of **July 2024**. #### **Leadership & Oversight** * **Executive Director & CFO:** **Mr. Prashant Suresh Agarwal** (Appointed **Nov 2023** for a **5-year** term). * **Statutory Auditors:** **M/s. Pradeep K. Singhi & Associates** (Term ending **2029**). * **Internal Auditors:** **M/s. Aditya A Garg & Associates** (Appointed for **FY 2024-25**).