- **Emkay Tools** - a specialist manufacturer of high-precision cutting tools - the drills, taps and thread-makers that shape metal parts in engines and airframes - was incorporated on April 25, 2023 as a wholly owned subsidiary of Emkay Taps and Cutting Tools, and later the parent’s entire manufacturing business was demerged and vested into it as a going concern with effect from April 1, 2024, creating a separate listed company. The recurring approach is to compete on engineering rather than price: it designs application-specific tools with special geometries for customers who need a tap that won’t snap inside a million-rupee casting, and it earns better margins doing so. # Business segments Two engines at different stages - a domestic manufacturing core that supplies India’s auto industry, and a small but deliberate export push that uses trade-policy shifts to open doors in the West - both built on the same Nagpur plant and the same engineering know-how. ## 1. Domestic cutting tools: the factory that feeds India’s auto lines **The company makes the consumable tooling that automotive and aerospace plants burn through every shift - taps, reamers, thread mills and rings - and sells them through dealers and direct to factories from a single plant in Nagpur.** - **Application-specific, not commodity** - it focuses on taps with special geometries tailored to a customer’s job, where performance matters more than the sticker price, so it avoids the low-margin brawl over standard tools. - **Tied to the auto cycle** - its order book rises and falls with car and component production, because every engine block and gearbox housing needs threaded holes, and those threads are cut by tools like Emkay’s. - **Raw materials are a modest slice of the cost pie** - raw material consumed was about INR 18.8 crore in FY25, with stores and packing adding another INR 3.4 crore, while the real value-add comes from the grinding, geometry and heat-treatment done on the Nagpur shop floor. - **Dealers plus direct reach** - it sells through a dealer network and also walks onto factory floors itself, and it showed up at IMTEX 2025, India’s big machine-tool exhibition, to find new customers beyond its existing roster. - **Job work from sister concerns** - two promoter-group companies, Nagpur Tools and Adishree Engineering, did roughly INR 13.9 crore of job work for it in FY25, which suggests it can flex capacity without owning every machine. ## 2. Exports: a small window onto American and Turkish shop floors **Exports are about 4-5% of turnover today, mostly to the USA, but the company is actively chasing orders from Turkey and other countries while a trade-policy gap opens between American buyers and their Chinese suppliers.** - **The GSP problem and the China opportunity** - the US withdrew India’s duty-free GSP benefits, which made Emkay’s tools more expensive for American buyers, but at the same time US-China trade tensions are pushing American manufacturers to look for suppliers who aren’t Chinese, and Emkay intends to be one of them. - **Dollar earnings are real but small** - foreign exchange earned in FY25 was about INR 7.6 crore, against an outgo of INR 6.2 crore, so the export engine is net-positive but still a fraction of the domestic business. - **Turkey as the next target** - alongside the US, the company is working to land export orders from Turkey, a country with its own large automotive and machining base, which would diversify the export book beyond a single geography. # Group structure and partners **Emkay Tools is a standalone company with no subsidiaries or joint ventures, but it leans on two promoter-group firms for job work and sells some output back to its former parent.** - **No subsidiaries, no associates** - the company sits alone on its corporate structure, with no equity stakes in any other entity as of the end of the year. - **Job work from promoter companies** - Nagpur Tools Private Limited did INR 12.9 crore of job work for Emkay Tools in FY25, and Adishree Engineering Private Limited added another INR 0.96 crore, making them an extension of the shop floor without being on the balance sheet. - **Sales to the old parent** - it sold INR 4.1 crore of tools to Emkay Taps and Cutting Tools Limited, the very company from which it was demerged, so the old relationship continues as a customer-supplier link. - **Listed on the SME platform** - its shares trade on NSE SME Emerge under the symbol ETL, with promoters holding just under 75% and every single share held in dematerialised form.