Deem Roll Tech Limited is a specialized Indian manufacturer of high-quality **steel and alloy rolls**, serving as a critical consumable provider for the global iron and steel rolling mill industry. Operating as a **single-segment entity**, the company provides tailor-made cast and forged rolls essential for the production of long products, flat products, and seamless tubes. --- ### **Core Product Portfolio & Metallurgical Specialization** The company’s value proposition lies in its ability to manufacture customized rolls that meet stringent metallurgical specifications. These products are vital for the shaping of steel in rolling mills, where durability and thermal stability are paramount. | Product Category | Key Characteristics & Industrial Applications | | :--- | :--- | | **S.G. Iron / Ductile Iron Rolls** | High tensile strength; engineered to withstand heavy loads. | | **Indefinite Chill Alloy Cast Iron** | Superior wear resistance; primarily used for finishing stands. | | **Alloy Steel Base Rolls** | High thermal stability; designed for heavy-duty rolling environments. | | **Double Poured Alloy Indefinite Chill** | Composite structure optimizing core strength with shell hardness. | | **HSS (High-Speed Steel) Rolls** | Advanced wear resistance for modern, high-speed rolling applications. | **Operational Highlights:** * **User Acceptance:** Due to the critical nature of rolling operations, the business relies on rigorous **user acceptance** of manufacturing processes. * **Client Retention:** A significant portion of the order book is driven by **repeat clients**, supported by successful **third-party inspections**. * **Technology:** Utilizes both **static cast** and **centrifugally cast** technologies, with the capability to cast single rolls weighing up to **15 MT**. --- ### **Integrated Manufacturing Infrastructure** Deem Roll Tech operates **three fully integrated manufacturing units** that encompass the entire production lifecycle, from engineering design and mold making to melting, casting, machining, and heat treatment. | Unit | Location | Specialization & Status | | :--- | :--- | :--- | | **Unit 1** | Chhatral, GIDC, Gujarat | Phase-II GIDC facility; recently replaced furnace to restore efficiency. | | **Unit 2** | Ganeshpura, Mehsana, Gujarat | Registered Office; **ISO 9001:2015** certified; site of major expansion. | | **Unit 3** | Hooghly, West Bengal | Integrated factory and machine shop serving the eastern steel hub. | * **Current Capacity:** **6,600 MT** of finished long product steel rolls per annum. * **Expansion Target:** Total capacity is projected to reach **8,100 MT** per year following the full commissioning of the **Ganeshpura expansion**. * **Quality Control:** Features an in-house testing laboratory approved by the **DSIR** (Ministry of Science and Technology). --- ### **Strategic Growth: The Ganeshpura Expansion & PSU Order Book** The company is currently transitioning from a long-product specialist to a diversified roll manufacturer by entering the **flat product roll** market. **The Ganeshpura Project (Unit-II):** * **Funding:** Financed via **IPO proceeds** (approx. **₹22.27 Crore** utilized as of Oct 2025). * **Facility:** **4,142 sq. meters** of land with a **3,500 sq. meter** factory shed. * **Status:** Trial production commenced in **October 2025**, with official commercial production starting **January 2, 2026**. **Order Book Strength (as of January 17, 2025):** The company maintains a robust order book of approximately **₹60.00 Crores**, with execution timelines ranging from **06 to 18 months**. Key recent wins from Indian Public Sector Undertakings (PSUs) include: * **Steel Authority of India (Bhilai):** **₹9.30 Crore** * **Steel Authority of India (Bokaro):** **₹8.91 Crore** * **Rashtriya Ispat Nigam Limited (Vizag):** **₹5.29 Crore** --- ### **Financial Performance & Capital Structure** While the company faced domestic pricing pressures and equipment downtime in the recent fiscal year, it has seen a significant surge in international demand. | Metric | FY 2024-25 (Projected/Actual) | FY 2023-24 (Actual) | | :--- | :--- | :--- | | **Total Revenue** | **₹94.74 Crore** | **₹101.43 Crore** | | **Net Profit (PAT)** | **₹2.90 Crore** | **₹7.81 Crore** | | **Export Turnover** | **₹24.03 Crore** (25.3% of Rev) | **₹17.59 Crore** (17.3% of Rev) | | **Production Volume** | **5,593.07 MT** | **6,203.70 MT** | | **Capacity Utilization** | **84.74%** | **94.00%** | | **Total Shareholders' Fund**| **₹84.26 Crore** | **₹49.22 Crore** | **Capital Mobilization:** * **Listing:** Debuted on **NSE EMERGE** on **February 27, 2024** (Symbol: **DEEM**). * **IPO Details:** Raised **₹29.26 Crore**; oversubscribed **256.55 times**. * **Preferential Allotment:** Issued **2,32,000** shares at **₹129/share** in early 2024. * **Dividend Policy:** Currently **ploughing back 100% of net profits** to fund capital-intensive growth; no dividend declared for the latest fiscal. --- ### **Global Footprint & Sales Model** Deem Roll Tech employs an **asset-light marketing strategy**, utilizing remote personnel in **8 key Indian cities** (including Pune, Mumbai, and Kolkata) to minimize administrative overhead. * **International Reach:** Exports to over **10 countries**, including the **USA, Germany, South Africa, Saudi Arabia, and Oman**. * **Export Growth:** International sales grew by **36.77%** year-on-year, now accounting for over **one-fourth** of total revenue. * **Supply Chain:** Raw materials include steel scrap, pig iron, and ferroalloys. Related party transactions for scrap procurement via **Diacut** are capped at **₹6.50 Crore** (FY 24-25) at arm's length. --- ### **Risk Factors & Operational Challenges** Investors should note the following headwinds and contingent liabilities: * **Energy & Supply Risks:** Natural gas allocation is subject to **Central Government regulation** (March 2026 notification), which prioritizes domestic/LPG sectors over industrial use, potentially impacting fuel stability. * **Pricing Pressure:** Intense domestic competition has forced a reduction in roll prices, impacting margins despite stable production. * **Audit & Receivables:** Auditors have highlighted an **Emphasis of Matter** regarding **₹39.38 Lacs** in doubtful trade receivables (outstanding >1 year) for which no provision has been made. * **Contingent Liabilities:** The company is contesting disputed **GST and Income Tax demands** totaling **₹150.57 Lacs**. * **Project Delays:** Completion of the Ganeshpura unit faced minor delays due to heavy monsoon rains and late machinery delivery. --- ### **Corporate Governance & Ownership** * **Promoter Holding:** Managing Director **Mr. Jyoti Prasad Bhattacharya** and relatives hold a dominant **67.85%** stake. * **Structure:** The company has **no subsidiaries**, joint ventures, or associate companies, ensuring a clean, simplified corporate structure. * **Banking:** Recently migrated credit limits to the **State Bank of India**, with bank guarantees totaling **₹1.48 Crore**.