Revathi Equipment India is a specialist manufacturer of blast-hole drills - the towering rigs that bore into rock so miners can pack in explosives and break ore loose - with roots stretching back to a 1977 collaboration with Chicago Pneumatic (USA) and a later stint inside the Atlas Copco Group before its acquisition by Abhishek Dalmia in 2002. The business was carved out through a court-approved demerger in 2023, listed on the BSE and NSE in September 2024, and is run from a single plant in Coimbatore with a philosophy its chairman describes as the Berkshire Hathaway model: buy and hold permanently. That long-term mindset shows up in customer relationships spanning more than three decades with Coal India and in a product range that has quietly put over 2,000 drills into the field across a dozen countries. # Business segments A single-engine industrial manufacturer - blast-hole drills and their aftercare - serving coal and metal miners on multiple continents from one factory in Coimbatore. ## 1. Drilling rigs: the pick-and-shovel supplier to India's mining industry **Every tonne of coal or iron ore starts with a hole in the ground, and REIL makes the machines that drill those holes - then keeps them running for decades.** - **Built for blasting, not just boring** - the core product is the blast-hole drill, a rig that punches holes from 63 mm to 349 mm in diameter into rock faces so explosives can be placed; the range spans rotary and down-the-hole (DTH) types, available with either diesel or electric drives. These rigs sit at the very start of the mining value chain, which is why the company's fortunes track coal and metal extraction cycles - coal alone accounted for roughly 38% of global drilling revenue in 2023. - **One factory, roughly 100 machines a year** - the Coimbatore plant has an annual installed capacity of 100 drill machines, and over the company's four-decade history it has shipped more than 2,000 drills of varying capacities. That is a small number relative to mass manufacturing, because each rig is a large, engineered-to-order capital good assembled from externally sourced hydraulic systems, motors, drilling assemblies and imported specialised parts. - **Coal India as the anchor customer** - REIL has supplied Coal India and its subsidiaries for over 30 years, and while that dependence has moderated - Coal India's share of sales dropped from nearly 39% in FY24 to about 22% in FY25 - the top five customers still contributed roughly 53% of total sales in both years. Other names on the order book include Tata Steel, NMDC and Vedanta, and exports have reached miners in Australia, Brazil, Indonesia, South Africa and seven other countries. - **An electric pivot already underway** - the company has begun converting its installed fleet at Coal India from diesel-engine-driven to electric-motor-driven blast-hole rigs (Model C750E), and has deployed an electric rotary drill (Model C650E) at NTPC's coalfields, using an energy-efficient motor in place of diesel to cut the carbon footprint. An electromagnetic clutch between the prime mover and air compressor adds further energy savings across the range. - **Working-capital-heavy by nature** - the business ties up cash: inventory days ran to 187 in FY25 and the full capital cycle stretched to 162 days, because building a drill takes time and customers pay after delivery. The company depends on external vendors for critical components, so supply-chain timing directly shapes how quickly a rig gets out the door. ## 2. Maintenance and after-sales service: the lifetime revenue that comes after the rig leaves the factory **A drill sold is a service annuity - REIL provides comprehensive maintenance support for its entire installed base, turning one-time equipment sales into multi-decade relationships.** - **Keeps the fleet drilling** - the company offers comprehensive maintenance and service support to customers for all their drilling equipment, which matters because a rig that sits idle in a mine costs far more than the service contract that prevents the downtime. This is the part of the business that explains how customer relationships stretch past 30 years. - **Spares reach matters enough to incorporate for it** - in April 2025 the company set up a wholly-owned LLP, Global Essential Mining Supplies LLP, with the explicit object of improving support and spares supply to customers, though it had not yet commenced operations by August 2025. An earlier LLP, Revathi Drilling Solutions LLP, was incorporated in November 2024 to expand marketing and business development, with nil turnover at inception. # Group structure and partners **REIL is a demerged entity with a concentrated promoter group, a listed sibling that is also a customer and creditor, and two newly formed subsidiaries that have yet to generate revenue.** - **Born from a court-approved split** - the drilling equipment business was demerged from Revathi Equipment Limited (which then renamed itself Semac Consultants Limited) under an NCLT order dated 14 June 2023; shareholders of Semac received one REIL share for every one they held, and REIL listed on the BSE and NSE on 11 September 2024. - **The promoter group is also a business partner** - REIL maintains a related-party relationship with Semac Consultants Limited, involving purchases of goods, engineering and non-engineering services, investments, and inter-corporate deposits both taken and given. That exposure has increased over time. In July 2025, REIL issued a corporate guarantee of Rs 40 crores to IDFC First Bank to secure credit facilities for Semac Construction Limited (formerly Semac Consultants Limited), creating a contingent liability on REIL's books. - **Two shell subsidiaries point to future ambitions** - Revathi Drilling Solutions LLP (incorporated November 2024) and Global Essential Mining Supplies LLP (incorporated April 2025) are both wholly owned, both formed to expand the business, and both had nil or no commenced operations as of their latest disclosures.