Forbes Precision Tools and Machine Parts Limited (**FPTL**) is a specialized engineering subsidiary of **Shapoorji Pallonji & Company Private Limited**. The company emerged as a standalone entity following its demerger from **Forbes & Company Limited**, which became effective on **March 1, 2024** (with an appointed date of **April 1, 2023**). FPTL was officially listed on the **BSE** on **June 11, 2024**, marking its transition into a focused, pure-play precision engineering firm. --- ### **Core Product Ecosystem and Brand Architecture** FPTL operates a diversified portfolio of high-end engineering tools and components, primarily under its flagship brand **TOTEM**. The company’s offerings are categorized into four distinct brands, each serving specific industrial niches: | Brand | Primary Product Categories | Strategic Focus & Recent Developments | | :--- | :--- | :--- | | **TOTEM** | **HSS Taps**, **Solid Carbide Tools**, **Rotary Burrs**, **HSS Drills**, **CST/Dies** | Flagship brand; focus on high-end threading, long drilling, and complex geometries for **Aerospace**. | | **BBBB** | **Spring Lock Washers** | Automotive-grade components; certified under **IATF 16949:2016**. | | **KENDO** | **Hand Tools** | Professional and general industrial applications. | | **FORBES** | **Carbide Wear Parts** | Specialized components for high-wear industrial environments. | **Key Segment Performance:** * **Precision Cutting Tools:** This core segment achieved **12% year-on-year growth** as of June 2024. * **High-Speed Steel (HSS) Drills:** A high-growth vertical that **doubled in size** during the last fiscal year. Recent investments include a new **Centre Drill** manufacturing setup. * **Taps & Threading:** Success in **Forming Taps** is supported by specialized simulation software. The company has recently expanded from HSS Taps into the **Carbide Taps** segment. * **Solid Carbide Tools:** Specifically engineered for the **Defense** and **Aerospace** sectors, with manufacturing processes certified under the **AS 9100D** aerospace quality standard. --- ### **Operational Infrastructure and Sustainability** The company’s manufacturing backbone is concentrated in Maharashtra, supported by a long-term stable workforce. * **Manufacturing Hub:** Three state-of-the-art facilities located at **Plot B-13, MIDC Waluj Industrial Area, Chhatrapati Sambhajinagar (Aurangabad)**. * **Workforce Management:** Approximately **485 employees** were transferred during the demerger. A **5-year labour settlement** is currently in place, ensuring industrial stability until the **end of 2028**. * **Energy & Efficiency:** FPTL has invested **₹3.01 crore** in a rooftop solar system and harmonic filters, resulting in annual energy savings of approximately **67,000 KWH**. * **Quality Standards:** The company holds **ISO 14001:2015** and **ISO 45001:2018** certifications. Post-demerger, it is in the process of re-obtaining all Quality Management System certifications in its own corporate name. --- ### **Market Strategy and Global Footprint** FPTL employs a dual-track sales strategy, combining direct key account management with an expanding network of channel partners. * **Domestic Expansion:** Aligning with the **"Make in India"** initiative, the company is targeting high-growth sectors including **Defense, Railways, and Electronics**. * **Export Performance:** In FY24, foreign exchange earnings reached **₹3,849.21 Lakhs**. Key markets include the **Far East, Americas, Russia, Israel, and Europe**. * **International Growth:** Despite geopolitical volatility in Europe and the Middle East, FPTL is aggressively pursuing large contracts in the **GCC, Far East, and South America**, supported by participation in global exhibitions like **EMO Hannover** and **IMTS Chicago**. * **Pricing Power:** The company successfully implemented price increases to offset **inflated input costs**, demonstrating brand resilience. --- ### **Financial Profile and Capital Structure** FPTL maintains a robust financial position characterized by high liquidity and a **Net Debt Free** status. **Standalone Financial Summary:** | Metric (₹ in crore) | FY 2024-25 | FY 2023-24 | | :--- | :--- | :--- | | **Total Revenue** | - | **229.56** | | **EBIDTA** | - | **52.43 (22.48% Margin)** | | **Profit After Tax (PAT)** | **28.75** | **29.71 (12.94% Margin)** | | **Gross Block** | **245.17** | **225.71** | | **Total Borrowings** | **19.68** | **5.42** | | **Interest Coverage Ratio** | - | **44.28x** | **Capital Allocation & Solvency:** * **Shareholding:** Following the demerger, the company issued **4 fully paid-up equity shares** (₹10 each) for every **1 share** held in the parent entity. Total paid-up capital is **₹51.59 crore**. * **Dividends:** For FY 2025-26, the Board approved an interim dividend of **₹5 per equity share** (50% face value), totaling a **₹25.8 crore** outflow. * **Liquidity:** Gross cash accrual stood at **₹41.15 Crore** in FY24. While borrowings increased to **₹19.68 crore** to fund expansion, the company remains net debt-free when considering cash and mutual fund holdings. --- ### **Strategic Growth Catalysts** * **Indigenization & R&D:** Focus on material science and machining technology to reduce costs and decrease dependency on third-party supplies. * **Capacity Expansion:** A **₹29.47 crore capex** program is underway to broaden the **Carbide** product range and enhance production technology. * **Sector Diversification:** Actively moving beyond traditional auto-components into **Rock Drilling**, **Aerospace**, and **Defense** to mitigate cyclicality. --- ### **Risk Factors and Mitigation** * **Sectoral Shift:** High dependency on the automotive sector poses a risk as the industry transitions to **Electric Vehicles (EV)**. FPTL is mitigating this by diversifying into Aerospace and Defense. * **Supply Chain & Raw Materials:** Key materials like **carbide** and **M35 steel** are imported from **China and Germany**, exposing the company to geopolitical risks and price volatility. * **Human Capital:** An **attrition rate of 17.24%** in 2025 has been identified as a challenge for operational continuity. * **Regulatory Changes:** The company is navigating the impact of the **Code on Social Security, 2020**. In 2025, it recognized an incremental **₹3.87 crore** expense due to revised wage definitions in the new Labour Codes. * **Geopolitical Volatility:** Ongoing conflicts in Russia and Israel have impacted export volumes, necessitating a shift in focus toward domestic and South American markets.