AKG Exim Limited is an Indian-listed merchant trading house and distribution specialist. Following a strategic pivot in **2024**, the company has transitioned from a manufacturing-and-trading hybrid to a **pure-play global intermediary and distribution model**. The company serves as a critical link in the supply chain for metal scrap, petrochemicals, and agricultural commodities, operating through a network that spans the **USA, West Africa, Europe, and Southeast Asia**. --- ### **Strategic Pivot: Transition to Asset-Light Trading Model** The company has recently undergone a fundamental restructuring to optimize its balance sheet and focus on high-velocity trading operations. * **Manufacturing Exit:** On **December 31, 2023**, the company shuttered operations at its **Neemrana, Rajasthan** plant (formerly under subsidiary **BKS Metalics Pvt. Ltd.**) due to technological obsolescence and unfavorable market conditions. * **Full Divestment:** On **September 13, 2024**, AKG Exim sold its entire **51% stake** in **BKS Metalics Pvt. Ltd.** to a third party, officially exiting the manufacturing sector. * **Asset Rationalization:** In **June 2025**, the Board approved the sale of corporate office units (**No. 237 and 238, Spazedge, Gurgaon**) to **MLH Ventures LLP**. This was paired with a **leaseback arrangement** for Unit No. 237 to maintain continuity while unlocking capital to repay loans and enhance working capital. * **Trademark Monetization:** The company assigned its corporate trademark to **M/s MLH Ventures LLP** for a fixed consideration to further bolster liquidity. --- ### **Core Business Verticals & Product Portfolio** AKG Exim operates through three primary divisions, supported by a dedicated marketing team and global indenting contracts. #### **1. Metals and Industrial Raw Materials** The company operates on a **"Reduce-Reuse-Recycle"** mission, focusing on the circular economy. * **Ferrous & Non-Ferrous Scrap:** Trading in **HMS (Heavy Melting Scrap)**, aluminum, stainless steel, copper, and brass. * **Industrial Goods:** Distribution of agricultural machinery, implements, tools, and plastic products. #### **2. Petrochemicals and Chemicals** * **Base Oils:** Distribution of **Group I, II, and III** variants to refineries and lubricant manufacturers. * **Industrial Chemicals:** Supply of **Granular & Formed Sulphur** for the phosphate industry and **Aromatics** (Benzene, Toluene). #### **3. Agricultural Commodities & Textiles** * **Agro-Commodities:** Processing and trading of wheat, **rice**, maize, pulses, oilseeds (Soya bean, Sunflower), and spices. * **Textiles & Apparel:** Wholesaling of cotton, silk, and jute. Notably, the company supplies **uniforms for the Indian Army, Navy, and Air Force**, alongside home textiles like carpets and shawls. --- ### **Corporate Structure & Ownership Transition** The company is currently undergoing a **Change in Control** following a Share Purchase Agreement (SPA) dated **October 9, 2025**. | Feature | Detail | | :--- | :--- | | **Incoming Acquirer** | **Mr. Kalapi Vinit Nagada** | | **SPA Acquisition** | **73,39,200 shares (23.10%)** from promoter **Mrs. Mahima Goel** at **₹13.00/share** | | **Mandatory Open Offer** | Offer for **82,62,000 shares (26.00%)** at **₹15.00/share** | | **Target Post-Offer Holding** | **1,56,01,200 shares (49.10%)** | | **Management Intent** | Continuity of existing business with potential for future diversification; no asset disposal planned for **2 years** | **Subsidiary Status:** * **ASRI Trade Pte. Ltd. (Singapore):** **100% Wholly Owned Subsidiary**; serves as the hub for global trading and offshore procurement. --- ### **Financial Performance & Capital Metrics** The **FY 2024-25** period reflected the impact of the manufacturing exit, showing a contraction in top-line figures as the company consolidated into a single segment. **Consolidated Financial Summary:** | Metric | FY 2024-25 (₹ Lacs) | FY 2023-24 (₹ Lacs) | Variance | | :--- | :--- | :--- | :--- | | **Total Turnover** | **13,297.48** | **18,440.76** | **-27.89%** | | **Standalone Turnover** | **6,983.72** | **10,430.75** | **-33.05%** | | **Standalone Net Profit (PAT)** | **49.20** | **107.88** | **-54.39%** | **Equity & Valuation (as of Oct 2025):** * **Paid-up Share Capital:** **₹31,77,65,760** (3,17,76,576 shares at **₹10 par**). * **Fair Value per Share:** **₹13.34** (Independent valuation). * **Listing:** Migrated to **NSE Main Board** on **February 16, 2021**. * **Dividend Policy:** No dividend recommended for **FY 2024-25**; focus remains on capital reinvestment. --- ### **Market Context & Growth Catalysts** AKG Exim’s strategy is aligned with India’s macroeconomic targets, including the goal of a **US$ 5 trillion economy by FY 2027-28**. * **Steel Sector Expansion:** India’s steel capacity is projected to reach **300-330 MT by 2030**. AKG is positioned to benefit from the **PLI Scheme 1.1** for specialty steel and the **National Steel Policy**. * **Agricultural Modernization:** The Indian agri-sector is expected to reach **US$ 24 billion by 2025**, driven by the adoption of **AI, Blockchain, and Drones**—technologies AKG monitors for supply chain efficiency. * **Infrastructure Spending:** The **₹11.21 lakh crore** government capital investment budget for infrastructure acts as a direct demand driver for the company’s metal and mineral trading arms. --- ### **Risk Factors & Contingencies** #### **1. Regulatory & Transactional Risks** * **Open Offer Completion:** The change in control is subject to **SEBI Takeover Regulations**. Delays in regulatory clearances or litigation could impact the timeline for share transfers and payments. * **Public Float:** Post-acquisition, the company must ensure it maintains the **25% minimum public shareholding** threshold. #### **2. Global Trade & Macroeconomic Volatility** * **Trade Barriers:** The **25% duty** on steel and aluminum and high tariffs (averaging **145%**) on certain international trade routes (e.g., US-China) create volatility in landed costs. * **Monetary Tightening:** A sharp deceleration in Indian non-food credit growth (from **16.5% to 10.9%**) and high **Loan-Deposit Ratios (LDR)** may tighten the availability of trade finance. #### **3. Sector-Specific Risks** * **Fiscal Policy:** Frequent changes in export duties (currently up to **50%** on iron ores) and royalty rates for **24 critical minerals** (including Lithium) impact trading margins. * **Environmental Costs:** Statutory contributions to the **District Mineral Foundation (DMF)**, which has collected over **₹71,128 crore** to date, represent an ongoing cost layer in the minerals value chain.