Rajputana Industries Limited is a high-growth, integrated non-ferrous metal recycling and manufacturing powerhouse based in India. The company specializes in converting metal scrap into high-performance, precision-engineered products for **Original Equipment Manufacturers (OEMs)** and industrial clients. Following its successful listing on the **NSE Emerge** platform in **August 2024**, the company is transitioning from a traditional recycler to a high-value solutions provider for the EV, renewable energy, and infrastructure sectors. --- ### **Integrated Circular Economy Model** Rajputana Industries operates a sophisticated **B2B business model** that manages the entire value chain, ensuring cost leadership and quality control through dual integration: * **Backward Integration (Scrap Sourcing):** The company bypasses intermediaries by procuring scrap metal directly from open markets in **India, UAE, Singapore, and South Korea**. This ensures a consistent feedstock of copper, aluminum, and zinc while optimizing procurement costs. * **Forward Integration (Value-Added Manufacturing):** Beyond basic recycling, the company processes intermediate billets into specialized finished goods. Recent strategic focus has shifted toward high-margin products like **super-enameled conductors** and **paper-covered wires**, supported by the installation of **6-7 new paper-covering machines** in **FY25**. * **Sustainability Integration:** The facility achieves **90% water recycling efficiency** and derives **18% of its energy** from **solar power**, aligning with global ESG mandates. --- ### **Manufacturing Infrastructure & Capacity Scaling** The company operates a **100% integrated manufacturing facility** in **Jaipur, Rajasthan**, certified under **ISO 9001, 14001, and 45001** standards. Its strategic location provides proximity to the **Mundra Port**, facilitating efficient export cycles. | Metric | Status / Target | | :--- | :--- | | **Total Annual Capacity** | Expanded from **11,260 MT** to **13,150 MT** (as of Dec 2024) | | **Capacity Utilization** | Currently **79%** | | **Quality Benchmark** | **< 0.5%** defect rate with **100% batch traceability** | | **Borrowing Limits** | Increased from **₹300 Cr** to **₹500 Cr** (Approved Oct 2025) | --- ### **Diversified Product Portfolio & Industrial Applications** The company manufactures **12 diverse product categories** adhering to **EN, ASTM, and DIN** international standards. #### **Core Metal Segments** | Metal Segment | Annual Capacity (MT) | Primary Products | | :--- | :--- | :--- | | **Aluminium** | **4,800** | Rods, Billets, Winding Wires, Busbars, and Strips | | **Brass** | **4,600** | Rods (Round/Hex/Square), Billets, and Alloy products | | **Copper** | **3,750** | Mother Tubes, Busbars, Super-enameled Wires, and Rods | #### **Specialized High-Value Products** * **Precision Conductors:** Super-enameled copper and aluminum conductors (Width **3-25 mm**) using high-grade enamels like **Terebec** and **Isomelt**. * **Defense & Aerospace:** Specialized **Bullet Shell Rods** (60%-80% Copper content). * **Infrastructure:** Copper Mother Tubes (Grades **ETP, DHP**) for HVAC and refrigeration. --- ### **Financial Performance & Growth Trajectory** Rajputana Industries has demonstrated explosive revenue growth and significant margin expansion, supported by a strengthening credit profile. #### **Key Financial Metrics (Consolidated)** | Metric (INR Cr) | FY24 (Actual) | FY25 (Audited) | H1 FY26 (Un-audited) | | :--- | :--- | :--- | :--- | | **Total Income** | **327.01** | **553.13** | **333.02** | | **EBITDA** | **18.16** | **18.92** | **12.84** | | **Net Profit (PAT)** | **5.13** | **8.27** | **5.41** | | **Revenue Growth** | - | **69.15%** | **29.19% (YoY)** | #### **Efficiency & Capital Strength** * **EBITDA Growth:** Increased by **46.80% YoY** in **H1 FY26**. * **Credit Rating:** Upgraded to **Acuite BBB+ (Positive Outlook)** in **Nov 2025**; also holds **CARE A3+**. * **IPO Capital Allocation:** Raised **₹23.88 Cr** in **Aug 2024** at **₹38/share**. Funds were deployed into **Working Capital (₹14.00 Cr)** and a **Grid Solar Power System (₹4.50 Cr)**. * **Operational Gains:** Achieved a **110 basis points** expansion in EBITDA margin and shortened the working capital cycle by **9 days** in **FY24**. --- ### **Strategic Growth Pillars & Market Outlook** The company is positioning itself to capitalize on the **"China+1"** sourcing trend and India's industrial tailwinds. * **Geographic Expansion:** Currently active in **14 Indian states**, with a target to reach **25 states**. Export targets include **ASEAN, Europe, and Africa**. * **Sector Tailwinds:** Aligning with the **National Infrastructure Pipeline (NIP)** and **Gati Shakti**. The global winding wire market is projected to reach **USD 23.02 billion by 2030**. * **Innovation:** Transitioning toward **solution-based selling** and direct OEM engagement, bypassing traditional distributors to capture higher margins. --- ### **Risk Management & Mitigation** Rajputana Industries employs rigorous internal controls to manage the inherent volatility of the non-ferrous sector. * **Market & Commodity Risk:** Exposure to **LME price fluctuations** for Copper and Aluminium is managed through lean manufacturing and inventory optimization. * **Financial Risk:** Credit risk is mitigated via an internal **Low/Moderate/High** rating system for counterparties. As of March 2025, the company maintained **₹313.23 Lakhs** in undrawn borrowing facilities to ensure liquidity. * **Human Capital:** Maintains a low attrition rate of **< 9%**. Actuarial risks related to gratuity and long-term benefits are monitored to prevent cash flow strain. * **Legal Status:** A legacy criminal matter involving promoters was **disposed of in October 2024** after the complainant withdrew the case, clearing the regulatory overhang. --- ### **Investment Summary** Rajputana Industries represents a disciplined play on the **Indian manufacturing renaissance**. With a **69% revenue jump in FY25**, a **Positive** credit outlook, and a strategic shift toward high-value **EV and renewable energy components**, the company is successfully leveraging its recycling roots to build a high-margin, technologically advanced industrial enterprise.