LEEL Electricals is an Indian manufacturer of heat exchangers and air‑conditioning systems that was pulled out of insolvency and restarted as a going concern - it is essentially a revived engineering shop whose original 1987 railway‑HVAC roots have been reshaped into a component‑supply business for the cooling industry. The company was acquired by Krishna Ventures Limited in mid‑2024 under the Insolvency and Bankruptcy Code, and after a capital restructuring that concentrated 95% of the shares with the new promoters, it resumed factory operations in May 2025. The recurring logic is straightforward: it makes the metal innards of air conditioners - coils, tubing, heat exchangers - and sells them to appliance brands, so its fortunes rise and fall with summer demand, commodity prices, and the order books of a handful of large OEM customers. # Business segments Three engines at different stages - a component‑supply workhorse that feeds the summer AC rush, a smaller packaged‑airconditioning unit that sells finished cooling systems, and a consumer‑durables leg that puts the company’s own brand on room air conditioners - all built on the same factory floor and the same copper‑and‑aluminium know‑how. ## 1. HVAC components: the factory floor that supplies everyone else’s air conditioners **It makes the heat‑exchange parts - coils, evaporators, condensers - that go inside split and window ACs, and it sells them to appliance companies that put their own badge on the finished machine.** - **Feeds the summer AC rush** - the division’s order book is driven by OEM customers stocking up ahead of India’s peak cooling season, backed by strong summer demand and higher realization. - **Copper and aluminium are the cost story** - the two key raw materials are copper and aluminium, which means the company’s input bill moves with global metal prices and it carries commodity‑price risk on every order. - **A concentrated customer base** - it depends on a limited number of AC OEMs for its sales, which creates customer‑concentration risk: losing one large buyer would punch a hole in revenue. - **Competing with the world** - it faces intense competition from both domestic component makers and global manufacturers, so it cannot take its position on anyone’s approved‑vendor list for granted. - **Policy tailwinds are real** - government programmes such as Make in India, production‑linked incentive (PLI) schemes for white goods, and import‑substitution rules are pushing appliance brands to buy more components locally, which expands the addressable market for a domestic supplier like LEEL. ## 2. Heat exchangers: the industrial‑cooling backbone **Beyond room ACs, it builds the larger heat‑exchange units - micro‑channel heat exchangers, industrial evaporators and condensers - that go into cold storage, process cooling, and heat‑pump systems.** - **Rides the industrial‑refrigeration wave** - demand is lifted by growth in cold‑chain logistics, food processing, data‑centre cooling, and healthcare refrigeration, all of which need heavy‑duty heat exchangers. - **Technology shift is both threat and opportunity** - customers increasingly want high‑efficiency products that meet BEE energy‑labelling norms and use low‑GWP (global‑warming‑potential) refrigerants, so the company must invest in advanced micro‑channel designs and possibly redesign existing lines to stay relevant. - **Retrofit demand adds a second engine** - ageing HVAC installations in commercial buildings are being upgraded for efficiency, which creates a replacement market for heat‑exchange units separate from new‑build construction. ## 3. OEM and packaged air conditioning: selling finished cooling systems, not just parts **It assembles complete air‑conditioning and HVAC systems for business buyers - factories, offices, railways - where the customer wants a working cooling plant, not a box of components.** - **A different sales rhythm** - unlike the component business, which follows the consumer‑AC cycle, packaged air conditioning is project‑based, with orders tied to infrastructure spending, commercial construction, and industrial expansion. - **Service wraps around the hardware** - the scope includes servicing of installed HVAC equipment, which creates a recurring revenue thread alongside the one‑time equipment sale. ## 4. Consumer durables: putting its own name on the air conditioner **The smallest leg of the business sells room air conditioners under the company’s own brand, competing directly with the same OEM customers it supplies components to.** - **A brand play on a component base** - because it already makes the coils and heat exchangers, it can assemble its own finished ACs and sell them through retail channels, capturing a slice of the consumer margin. - **Summer is everything** - like all room‑AC brands in India, sales are heavily skewed toward the April-June heatwave window, so inventory planning and channel placement make or break the year. # Group structure and partners **The company is a revived shell under new promoters who concentrated ownership, restarted the factory, and run it with a lean board.** - **Acquired out of insolvency** - Krishna Ventures Limited bought the company as a going concern under the IBC process, with the NCLT approving the sale in March 2024 and the sale certificate issued in June 2024; the new management took charge in early July 2024. - **Ownership is tightly held** - after a capital reduction and share allotment approved by the NCLT, the promoter group holds roughly 95% of the equity, with public shareholders holding the remaining 5%. - **The promoter group** - the new promoters are Mr. Neeraj Gupta (who is also Managing Director), Krishna Ventures Limited, Freshplate Agro Foods Pvt Ltd, Ashva Energy Private Limited, and Mr. Durgesh Kumar. - **What was bought** - the going‑concern sale included the company’s name, icon, manufacturing designs and procedures, and possession rights to a building at Rudrapur; six other plants of the corporate debtor had already been sold separately on a standalone basis before the acquisition.