Established in **2009** as a key entity within the **New Swan Group**, New Swan Multitech Limited (NSML) has evolved into a sophisticated manufacturer and exporter of precision-engineered components. The company operates a dual-vertical business model, serving the **Automotive** and **Agricultural** sectors across **India, Europe, the Middle East, Asia, and Africa**. --- ### **Strategic Manufacturing Footprint & Infrastructure** NSML operates through two state-of-the-art manufacturing facilities strategically located to serve key industrial hubs. The company maintains rigorous quality standards, holding **ISO, QS, and TS** certifications to ensure compliance with global automotive and industrial benchmarks. | Unit | Location | Strategic Focus | | :--- | :--- | :--- | | **Unit-I** | Village Raian, Ludhiana, Punjab | Primary manufacturing and agricultural machinery hub. | | **Unit-II** | Vithlapur, Ahmedabad, Gujarat | Specialized facility located within the Gujarat automotive cluster. | The company maintains comprehensive records for its **Property, Plant, and Equipment (PPE)** and **Intangible Assets**, ensuring high levels of transparency regarding its physical capital. --- ### **Dual-Sector Product Portfolio: "Swan Agro" & Auto Components** NSML leverages its engineering expertise to maintain a diversified product basket, reducing dependency on any single market segment. #### **1. Agricultural Machinery (Brand: SWAN AGRO)** Under the flagship **SWAN AGRO** brand, the company provides a full-lifecycle solution including production, sales, spare parts, and after-sales service. * **Tillage & Land Prep:** Rotary Tillers, Disc Ploughs, Disc Harrows, Sub Soilers, and Mulchers. * **Sowing & Planting:** Potato Planters, Roto Seeders, Seed Drills, Zero Till drills, and Fertilizer Spreaders. * **Harvesting & Post-Harvest:** Potato Diggers/Harvesters, Reaper & Binders, Straw Reapers, Balers, and Combine Harvesters. * **Specialized Equipment:** Post Hole Diggers, Trailers, and Rotary Slashers. #### **2. Automotive Components** NSML manufactures high-precision parts for **Two-Wheelers** and **Passenger Vehicles**, focusing on: * **High-precision brackets** and **linkage assemblies**. * **Complex assemblies** requiring tight tolerances. * **Electric Vehicle (EV) Verticals:** Developing specialized components for the emerging EV ecosystem. --- ### **Proprietary Technology & R&D Integration** A core competitive advantage for NSML is its in-house **Research & Development Centre**, which focuses on "manufacturing the machines that manufacture the parts." * **Special Purpose Machines (SPMs):** The company designs and develops customized SPMs tailored to specific production needs. This reduces reliance on external vendors and ensures proprietary manufacturing processes. * **Operational Efficiency:** R&D efforts are specifically directed toward **reducing processing time** and lowering the **cost of manufacturing**. * **Lean Manufacturing:** Continuous refinement of machine processes and the implementation of lean practices are used to optimize cost structures and improve margins. --- ### **Capital Structure & IPO Proceeds Utilization** The **FY 2024-25** period marked a significant transition for NSML, characterized by a successful **Initial Public Offering (IPO)** and a subsequent expansion of its equity base. * **IPO Details:** The company raised **Rs. 33.11 Crore** by issuing **50,16,000 Equity Shares** at **Rs. 66** per share. * **Capital Deployment:** As of **March 31, 2025**, IPO proceeds were **fully utilized** for: * Funding **Capital Expenditure** for modern machinery. * **Repayment of borrowings** to deleverage the balance sheet. * Meeting **Working Capital** requirements for scaled production. * **Equity Expansion:** The **Authorised Share Capital** was increased from **Rs. 5 Crore** to **Rs. 20 Crore**. Following a **Bonus Issue** of **1,05,00,180 shares**, the Paid-up Capital stands at **Rs. 19.02 Crore**. * **Promoter Skin in the Game:** **Upkar Singh** maintains a dominant shareholding of **73.62%** (**1,39,99,960 shares**). --- ### **Financial Performance & Efficiency Metrics** NSML has demonstrated a trend of improving profitability and capital efficiency. The reduction in the Debt-Equity ratio highlights a move toward a more conservative and sustainable financial structure. | Key Financial Ratio | FY 2024-25 | FY 2023-24 | | :--- | :--- | :--- | | **Net Profit Ratio** | **7%** | **6%** | | **Return on Equity (RoE)** | **14.44%** | **13.75%** | | **Debt-Equity Ratio** | **1.01** | **1.23** | | **Current Ratio** | **1.54** | **1.46** | | **Net Capital Turnover Ratio** | **2.00** | **5.03** | --- ### **Human Capital & Organizational Culture** The company operates with a workforce of **139 permanent employees** (as of March 2025). * **Remuneration Trends:** The median remuneration stood at **Rs. 15.16 Lacs** per annum. Notably, **Managerial Remuneration** increased by **31.44%** in the last fiscal year, reflecting a focus on retaining high-level leadership. * **Skill Development:** NSML invests in both **in-house and external training** to maintain a competency-driven culture. --- ### **Risk Factors & Governance Challenges** While NSML is positioned for growth, investors should note specific operational and compliance-related risks. #### **1. Statutory & Compliance Issues** * **Internal Audit Vacancy:** The company is currently non-compliant with **Section 138 of the Companies Act, 2013**, as the position of **Internal Auditor** remains vacant. * **Outstanding Statutory Dues:** There are significant undisputed Income Tax arrears outstanding for more than six months: * **AY 2024:** **Rs. 269.65 Lakhs** + Interest. * **AY 2022:** **Rs. 6.58 Lakhs** + Interest. * **Litigation:** An active dispute is pending with **CIT, Delhi** regarding an Income Tax penalty for **AY 2018-19** (amount currently unascertainable). #### **2. Market & Macro Risks** * **Input Volatility:** Vulnerability to **raw material price spikes** and fluctuations in **gasoline prices** which impact traditional vehicle demand. * **Cyclicality:** Exposure to the cyclical nature of the automotive and agricultural sectors. * **Regulatory Shifts:** Potential impacts from changes in **tax regimes**, **EV incentives**, and **industrial relations**. --- ### **Future Growth Drivers** * **EV Ecosystem:** Strategic pivot toward components for **Electric Vehicles** and **autonomous vehicle** technologies. * **Global Expansion:** Leveraging a robust logistics network to increase the export footprint of the **Swan Agro** brand. * **Automation:** Continued investment in **high-tonnage presses** and **automated manufacturing** to drive precision and margin expansion.