### **Overview** Rishabh Instruments Limited (RIL), established in 1982, is a globally recognized engineering firm specializing in **energy efficiency solutions** for industrial, infrastructure, and renewable energy markets. The company operates through a vertically integrated, innovation-driven model across five manufacturing facilities in **India, Poland, and China**, supported by modification centers in the US and UK. As of November 2025, RIL has restructured its operations into **two strategic business divisions**: 1. **Electrical and Electronic Instruments (EEI)** 2. **High Pressure Die Castings (HPDC)** This restructuring aims to sharpen operational focus, enhance market positioning, and drive profitability across core verticals. --- ### **Business Segments & Product Portfolio** #### **1. Electrical and Electronic Instruments (EEI)** The EEI division encompasses: - **Electrical automation systems** - **Metering, control & protection devices** - **Portable test and measuring instruments (T&M)** - **Solar string inverters** - **Industrial IoT and hardware-software integrated solutions** **Key Offerings:** - **Analog Panel Meters (APMs)**: Global market leader. - **Low-voltage current transformers (LV CTs)**: #1 globally; also leading in **split-core CTs** in India. - **Electrical transducers**: #1 in India. - **Digital panel meters**: Rank #3 in India. - **Solar string inverters**: First Indian company to **design, develop, and manufacture end-to-end**. - *UNO Series* (Single-phase): 2.5KW–6KW, targeting Indian PM Suryaghar scheme. - *NEO RADIUS Series* (Three-phase): 3KW–20KW, with R&D underway for models up to 120KW. - **IoT-enabled devices**: Including GSM-based remote monitoring, LoRa, and SCADA integration. **Innovation & R&D:** - Operates **six R&D centers**, located across **India (Nashik, Mumbai, Chennai), Poland, China, and IIT Bombay**. - Maintains DSIR-recognized and accredited labs. - Proprietary **MARC software platform** enables advanced data integration and control. - 160+ dedicated R&D engineers; invests **1–2% of revenue annually** in innovation. - **New product launches** contribute ~10% incremental revenue annually. **Strategic Technology Partnerships:** - Partnership with **ASPIRE-IITB Research Park Foundation** to co-develop student-led, industry-relevant R&D projects. - 2024 acquisition of **MICROSYS (Czech Republic)**, a developer of **PROMOTIC SCADA software**, enhancing bundled hardware-software automation solutions. - Leveraged **GEFRAN’s Italian technology** to accelerate solar inverter development. **Market Presence:** - Serves **over 3,000 B2B customers** across **100+ countries**. - Owns strong brands: **Rishabh (India), Lumel (Poland & Eastern Europe), Sifam & Tinsley (UK/US)**. - 20% of exports involve **white-label manufacturing** for major international brands (US & UK-based clients). #### **2. High Pressure Die Castings (HPDC)** Operated through **Lumel Alucast Sp. z o.o. in Poland**, this division provides **precision aluminum die-cast solutions** for: - Industrial automation - Electric vehicles (EVs) - Automotive compressors - Street lighting - Telecommunications - Consumer durables **Key Strengths:** - Produces **35,000 castings/day** from a **20-ton aluminum melt capacity**. - Supplies critical components to global leaders: **ABB, Siemens, Endress+Hauser, Stellantis, BMW, Volkswagen, and Mercedes**. - 50% of HPDC revenue comes from **non-automotive industrial applications**, targeted to rise to **75%** as part of strategic rebalancing. - Fully integrated capabilities: mold design, casting, machining, surface treatment. --- ### **Strategic Initiatives & Operational Focus** #### **Restructuring & Geographical Rebalancing** - Transitioning HPDC business from **automotive (50%) to 25%**, focusing on **higher-margin non-automotive applications**. - Deliberate exit from low-margin EV and auto contracts in Europe due to pricing pressure. - Europe contributes ~60% of revenue, but expansion into **US, UK, Middle East, Southeast Asia, and South Africa** is accelerating. - Strategic push for **UL certification** in the US to unlock new markets. #### **Manufacturing & Capacity Expansion** - **Nashik Expansion (India):** - Constructing **two new six-story buildings**, increasing built-up area by **110%**. - Expected completion: **mid-2026**. - Purpose: **Double manufacturing capacity** for electronics, EMS, and digital products. - **New SMT Lines:** - State-of-the-art SMT lines with **AOI and X-ray inspection**, installed in **Nashik and Zielona Góra (Poland)**. - Capable of processing **180,000 components/hour**, doubling prior capacity. - Clean room environments ensure high precision. - **EMS Growth:** - EMS business doubled with 100% YoY growth. - Produces private-label electronics, including devices for **Amazon (Ono co-driver)**. - 2 million units/year currently, with scalable capacity. #### **Solar Inverter Business: Strategic Growth Driver** - Aligned with India’s **PM Suryaghar Muft Bijli Yojana (Rs 7,327 crore FY25 allocation)** for 10 million solar-enabled homes. - **Early Market Traction:** 1,000+ orders received at first exhibition. - Revenue at breakeven in FY25; projected to reach **INR 1,000 crore (~$120M)** in **3–4 years**. - Plans to leverage **Reliance Industries' distribution network** for go-to-market strategy. - Features: - **GSM-based remote monitoring** - Light-weight, aluminum die-cast enclosures - In-house design of critical components (molds, PCBs) - Positioned as **cost-competitive vs. Chinese imports**, with local manufacturing advantage. #### **Innovation & Patents** - **Two global patents** in clamp meter mechanisms (rotary jaw, safe trigger). - **Three design registrations** in India (multimeters, transducers). - Developed **insulation testers** with audio readout, Bluetooth, and 765kV capability. - New product roadmap includes **medium-voltage protection relays (V5)** and **ND50 controller**, under EU grant. --- ### **Financial Performance & Outlook** #### **Revenue & Markets** - Total Revenue (FY31, 2025): **₹7,203.4 crore** - Geographic Revenue Mix: - **Europe (excl. Poland)**: ₹3,415 crore (48%) - **India**: ₹2,392 crore (up 6.5% YoY) - **Poland**: ₹1,416 crore - **USA**: ₹367 crore (up 60% YoY) - EMS in US grew from $2M to projected **$5–6M** in coming years. #### **Profitability & Cost Management** - **EEI Division**: Strong profitability; Rishabh India and Lumel SA achieved **15.5% adjusted EBITDA margin (FY25)**. - **HPDC (Lumel Alucast)**: - Reached **EBITDA breakeven in Q4 FY25**. - Exiting loss-making contracts; margin recovery expected. - Target: **18–20% EBITDA in 2–3 years**. - HPDC margins previously pressured by: - Stagnant EV pricing - European energy cost surge - Inflexible long-term contracts #### **Capital Allocation & Acquisitions** - IPO raised ~INR 70 crore, allocated to **Nashik expansion**. - Recent acquisitions: - **Lumel Poland (2012)**: Turned around from losses to **18–20% EBITDA**. - **Sifam-Tinsley UK**: Expanded European footprint. - **Shanghai V&A (2019)**: Now contributing to China market growth and cost savings. - **MICROSYS Czech Republic (2024)**: Strengthened SCADA/software integration. - Exploring **additional inorganic opportunities** in aluminum die-casting (India) and Poland. --- ### **Market Leadership & Competitive Positioning** | **Category** | **Position** | |-------------|------------| | Analog Panel Meters | Global #1 | | Low-voltage CTs | Global #1 | | Electrical Transducers (India) | #1 | | Split-core CTs (India) | Top player | | Digital Panel Meters (India) | #3 | | Portable T&M Instruments (Poland) | #2 | | Meters & Controllers (Poland) | #1 (Lumel) | | Non-Ferrous HPDC in Europe | Leading player | ---