Sampann Utpadan India Limited (formerly **S. E. Power Limited**) is an Indian industrial entity specializing in environmental sustainability through waste recycling and renewable energy generation. Following a strategic rebranding in **July 2023**, the company has pivoted toward a circular economy model, focusing on the high-growth reclaimed rubber market and captive green energy production. --- ### **Core Business Segments & Revenue Streams** The company operates through two primary divisions, with a heavy strategic tilt toward manufacturing and recycling. #### **1. Reclaimed Rubber Division** This segment is the company’s primary growth engine, contributing approximately **93%** of total revenue. * **Product Portfolio:** Global supplier of **Whole Tyre Reclaim (WTR)**, **Butyl Reclaim** (for impermeability in seals/tubes), **EPDM Reclaim** (heat/ozone resistant for outdoor use), and **Drab/Colored Reclaim**. It also produces **crumb rubber** and **steel scrap** from recycled tyres. * **Market Position:** Holds a stable export share of approximately **35%** from India. The company is an approved vendor for major automotive and industrial manufacturers. * **Compliance & Quality:** Products are **REACH compliant** (European standards) and meet **ISO 9000:2008** quality management systems. #### **2. Non-Conventional Energy Division** This division supports environmental goals and mitigates rising industrial power costs. * **Wind Energy:** Operates assets in **Chitradurga (Karnataka)** and **Jaisalmer (Rajasthan)**. * **Solar Energy:** Recently commissioned a **4 MW solar facility** at the Vadodara plant (March 10, 2026) for captive consumption. * **Environmental Impact:** The solar plant is targeted to generate **60,00,000 units (0.6 crore kWh)** per annum, reducing CO2 emissions by **4,500-5,000 metric tons** annually. --- ### **Financial Performance & Segment Analysis** The company achieved a significant financial turnaround in **FY25**, moving from consecutive losses to a net profit. | Particulars (INR Lakhs) | 31-March-2025 | 31-March-2024 | 31-March-2023 | | :--- | :--- | :--- | :--- | | **Reclaimed Rubber Division** | **9,235.13** | **7,110.95** | **5,733.44** | | **Non-Conventional Energy** | **28.49** | **343.77** | **407.29** | | **Total Revenue** | **9,263.63** | **7,145.32** | **5,774.17** | | **Net Profit / (Loss)** | **398.00** | **(86.78)** | **(169.00)** | **Key Financial Observations:** * **Revenue Growth:** Achieved a **29.65%** YoY increase in **FY25**. * **Profitability:** Consolidated net profit reached **₹3.98 crore** in **FY25**, driven by the standalone manufacturing entity. * **Cost Management:** Successfully reduced financial costs by **70.61%** in **FY23** through debt restructuring and efficient capital use. * **Energy Segment Decline:** Revenue from the energy division fell sharply due to the suspension of **4 windmills** in Karnataka following forest department directives. --- ### **Strategic Growth Drivers & Market Tailwinds** The company is positioning itself to capitalize on both domestic infrastructure growth and global sustainability shifts. * **Extended Producer Responsibility (EPR):** A major beneficiary of new Indian regulations, the company can generate additional revenue by selling **EPR credits** to tyre producers who must offset their environmental footprint. * **Infrastructure & OTR Demand:** Targeting the **Off-The-Road (OTR)** tyre segment, fueled by India’s road development, mining, and mechanized agriculture. * **Market Outperformance:** In **CY2024**, the company achieved **24.5% sales growth** in India, vastly outperforming the domestic industry average of **1%**. * **Global Market Expansion:** Operating in the **Asia Pacific** region, which holds **35%** of the global reclaimed rubber market (projected **10.9% CAGR** through 2030). --- ### **Capital Structure & Corporate Actions** To fund expansion and deleverage the balance sheet, the company has undertaken several major capital initiatives: * **Authorized Capital Expansion:** Increased from **₹40.61 crore** to **₹75.00 crore** in late 2024. * **Fundraising via Warrants:** Issued **1,05,00,000 warrants** at **₹33.90** per warrant in early 2025, raising approximately **₹35.595 crore**. * **Debt Reduction:** Primary use of warrant proceeds is the **repayment of unsecured borrowings**. * **Equity Conversion:** Allotted **82,00,000 equity shares** upon warrant conversion in **September 2025**. These shares are subject to lock-in periods of **18 months** for promoters and **6 months** for non-promoters. --- ### **Operational Infrastructure & Subsidiaries** * **Manufacturing Hub:** Located at **Samlaya, Vadodara (Gujarat)**. The plant features energy-efficient designs, including powerless turbo ventilators and optimized natural lighting. * **Subsidiary:** **Shubham Electrochem Limited** is a **wholly-owned subsidiary**; however, it currently reports **Nil income** and marginal losses. * **Human Capital:** Strengthened leadership by appointing a **Chief Development Officer** in 2024 and adding multiple **Independent Directors** to the board. --- ### **Risk Factors & Mitigation Challenges** Investors should monitor several regulatory and macroeconomic headwinds: * **EPCG Scheme Liability:** The company has an outstanding export obligation shortfall of **₹47.29 crore** under the EPCG scheme. Failure to secure an extension puts a **₹7.88 crore** custom duty exemption at risk. * **Geopolitical Supply Chain Risks:** The Russia-Ukraine conflict has disrupted the supply of **Carbon Black** (Russia/Ukraine held **54%** of European capacity) and synthetic rubbers, increasing reliance on reclaimed alternatives but also causing raw material volatility. * **Regulatory Disruptions:** The **Chitradurga wind site** (127 turbines total) has been suspended since **May 7, 2022**, by the **Principal Chief Conservator of Forest**, impacting energy revenues. * **Macroeconomic Volatility:** Exposure to **US tariffs** (announced April 2025), **RMB depreciation**, and fluctuations in **Crude Oil** prices which dictate the competitiveness of reclaimed vs. synthetic rubber. * **Management Turnover:** The **Chief Financial Officer (CFO)** resigned in **January 2025**, requiring a transition in financial leadership.