### **Overview** KRN Heat Exchanger and Refrigeration Limited, established in 2017, is a rapidly growing Indian manufacturer and exporter of precision-engineered heat exchangers and related components for the Heating, Ventilation, Air Conditioning, and Refrigeration (HVAC&R) industry. Headquartered in Neemrana, Rajasthan, within the RIICO Industrial Area and part of the Delhi-Mumbai Industrial Corridor (DMIC), KRN operates a technologically advanced, vertically integrated manufacturing facility spanning approximately **150,000 square feet** across two units. The company serves major global OEMs and has evolved from a single-product supplier into a diversified thermal solutions provider with a strong domestic presence and growing international footprint. --- ### **Core Business & Product Portfolio** KRN specializes in the design, manufacture, and supply of **aluminum and copper fin-and-tube heat exchangers**, including: - **Condenser Coils** (60.74% of FY2025 revenue) - **Evaporator Coils** (30.39% of FY2025 revenue) - **Headers & Copper Parts** - **Fluid & Steam Coils** - **Sheet Metal Components** - **Water Coils** The company offers over six core product categories with customizable configurations, tube diameters (5mm to 15.88mm), fin patterns, and advanced nano/powder coatings for enhanced corrosion resistance. Products are used across commercial cooling, industrial processes, rail and mobility systems, data centers, and mission-critical infrastructure. Recent diversification includes the launch of **Bar & Plate Heat Exchangers**, **Oil Cooling Units with Blower & Motor**, and **Roll Bond Evaporators** through its wholly owned subsidiary, **KRN HVAC Products Private Limited**. --- ### **Manufacturing & Capacity** KRN’s Neemrana facility is a fully integrated hub supporting **end-to-end operations** — from **product design**, **material sourcing**, **precision fabrication**, **brazing**, **testing**, to **packaging** — under one roof. Key features include: - **Installed Capacities (as of Nov 2025):** - Evaporator & Condenser Coils: **566,551 units** (84.09% utilization) - Headers & Copper Parts: **618,667 units** (84.53% utilization) - Sheet Metal Parts: **556,800 units** (85.77% utilization) - **Total Annual Production Capacity:** Over **1 million units** - **Advanced Equipment:** - Helium Leak Testing Machine - NCT Punching & CNC Bending Machines - Hair Pin Benders, Fin Presses, Vertical Expanders - EOT Cranes for large-scale heat exchangers (up to 12 meters in length) The company operates with **high capacity utilization (>90% in FY25)** and has completed a **sixfold expansion** to meet rising demand. --- ### **Strategic Expansion & Subsidiary Developments** In April 2023, KRN incorporated **KRN HVAC Products Private Limited** as a wholly owned subsidiary to expand into higher-value product lines and international markets. Key developments: - **Acquisition of Sphere Refrigeration Systems’ Bus Air-Conditioning Division** (Oct 2025): - Includes all assets, operations, and experienced personnel - Aims to strengthen KRN’s position in **automotive HVAC**, particularly for buses, locomotives, and industrial mobility - Expected to generate **INR 160 crores** in revenue within a year, with margin profiles similar or better than current business - Integrated into KRN HVAC Products Pvt. Ltd. - **New Manufacturing Facility in Neemrana**: - Commissioned in **May 2025** (commercial production began) - Focus: Bar & Plate Heat Exchangers, Roll Bond Evaporators, Oil Cooling Units - Part of a planned **INR 1,000 crore investment** under an MoU with the Government of Rajasthan - **South India Expansion Under Evaluation**: - To improve logistics and market access in southern India - Decision expected within six months (as of Feb 2025) --- ### **Financial Highlights & Market Performance** - **IPO Raised:** ₹341.95 crores - **Listed on:** National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) - **CRISIL Rating:** **A- (Stable Outlook)** — reflecting sound financials and consistent operations - **Revenue Growth:** - Revenue CAGR: **48.34%** - Profit After Tax CAGR: **135.77%** - **Export Share:** Currently ~**21.62%** of revenue; target to increase to **50%** - Exports to **14 countries** across North America, Europe, and Asia - Regional Revenue Mix (FY24–25): - North America: **21.62%** - Asia (excl. India): **15.75%** - Europe: **13.79%** - **Pricing Advantage:** 20–25% lower than European peers, enabling competitiveness in global markets --- ### **Customers & Market Reach** - **Customer Base:** 113 clients in FY2024–25 - **Customer Concentration:** Top 10 customers accounted for **72.31%** of revenue — a known strategic risk being actively addressed - **Key Clients:** Daikin, Schneider Electric, Kirloskar Chillers, Blue Star, Climaventa, Carrier, Voltas, Eberspaecher, Knorr Bremse, Havells (approved) - **Special Relationship with Daikin:** - Supplies **100+ part numbers daily**, primarily for commercial and customized small batches - Proximity reduces freight and packaging costs, providing a strategic edge - **New Approvals:** Havells; securing soft commitments from large global OEMs with procurement needs of ₹50–100+ crores annually --- ### **Research, Development & Innovation** - **Thermotech Research Lab Pvt Ltd** – Dedicated R&D subsidiary - **In-House Design Center:** - Staffed by engineers with **over 20 years of industry experience** - Uses **AutoCAD, SolidWorks, Unilab SRL**, and specialized heat transfer simulation software - Engages customers early in design phase to develop optimized, high-efficiency solutions - **Focus Areas:** - Microchannel Heat Exchangers (MCHX) to future-proof product portfolio - Frost-free evaporators, wire-on-tube condensers, roll bond tech - Energy efficiency, compactness, sustainability, and low carbon footprint solutions - **R&D Spend:** ₹11.88 lakhs in FY2022–23; increasing with new product launches --- ### **Strategic Initiatives & Growth Drivers** 1. **Global Expansion:** - Shifting export focus from UAE to **North America and Europe** - Sales presence in **Czech Republic**; plans for stronger local teams in target regions - Participation in international exhibitions (USA, India, Germany) 2. **Reducing Customer Concentration Risk:** - Strategic goal to expand customer base and deepen penetration across new geographies and sectors 3. **Policy & Incentive Benefits:** - **PLI Scheme (Production Linked Incentive):** Subsidiary **KRN HVAC Products Pvt. Ltd.** approved under white goods category; **INR 141.72 crores** sanctioned - **Rajasthan Investment Promotion Scheme (RIPS):** Approval expected within 4–6 weeks; supports future margin improvement - Also benefits from **Duty Drawback, RoDTEP, EPCG**, and 100% FDI in manufacturing 4. **Sustainability & Cost Optimization:** - Solar energy integration at new plant to reduce power costs - ERP implementation, automation, and lean manufacturing to boost efficiency and margin visibility