### **Overview** Shera Energy Limited is a rapidly growing Indian public company (listed on NSE Emerge) headquartered in **Jaipur, Rajasthan**, specializing in the manufacturing of **precision-engineered non-ferrous metal products**, particularly **copper, aluminum, and brass winding wires, rods, strips, conductors, and tapes**. The company has evolved from a metal processor into a **fully integrated global energy metals solutions provider**, with strategic backward and forward integration enhancing cost control, supply chain resilience, and profitability. The company is led by experienced management with **over 20 years of industry expertise** and has consolidated annual revenue of **₹1,279.05 crore (USD ~153 million)** in FY25, with a net profit of **₹22.40 crore**—representing **45.96% and 59.43% YoY growth**, respectively. A strong ROCE of **27.56%** reflects its operational efficiency. --- ### **Business Model & Strategy** Shera Energy operates on a **vertically integrated model**, spanning from **raw material sourcing to finished product manufacturing**, with a strong focus on: - **Backward Integration**: Ensuring cost-effective and reliable raw material supply. - **Forward Integration**: Expanding into higher-value products and end-use applications. - **Global Expansion**: Establishing footprint in Africa and Asia to serve emerging markets. - **Sustainability & Technology**: Leveraging recycling, automation, and R&D for competitive advantage. The company serves as a **solutions partner**, offering **custom-engineered products** rather than commoditized offerings, with a customer-centric model emphasizing **quality, on-time delivery, and technical support**. --- ### **Key Strategic Developments (2024–2025)** #### **1. Expansion in Africa: Zambia & Ethiopia** - **Shera Zambia Limited** (98% owned) was established in 2022 and fully consolidated in FY24, marking Shera’s entry into **Central Africa**. - Acquired a **copper cathode manufacturing plant** in Zambia’s Copperbelt region, near DRC, capable of producing **99.99% pure copper** from local oxide ores. - **Initial capacity**: 1,200 MT/year → **planned scale-up to 5,000 MT in FY25**, with further expansion to **12,000 MT (FY25)** and **24,000 MT (FY26)**. - The facility supports **local processing**, reducing reliance on imported raw materials and mitigating global price volatility. - Positioned to serve **Zambia and neighboring countries**, capitalizing on World Bank-funded infrastructure projects. - **Initial orders worth ₹5 crores received in 2024–25**, with a target to capture **5% of local market demand**. - Future plans include **sourcing copper, lead, zinc, and cobalt** (critical for EV batteries), adding value via processing, and exporting to India. - **New Subsidiary in Ethiopia (Nov 2025)** - Approved to establish a subsidiary with an investment of **up to USD 1 million**. - Part of a broader **African market expansion strategy**, building Shera’s presence in East Africa. - Aims to replicate Zambian supply chain integration and serve regional infrastructure projects. #### **2. Backward Integration & Raw Material Security** - **Zambian operations** ensure **in-house production of high-purity copper cathodes**, eliminating dependence on external suppliers. - **Sourcing flexibility**: Procures oxide ore from regional miners (no direct mine ownership for now); exploring **profit-sharing investment models** with miners. - Operates near Zambia-Congo border for access to dual supply sources. - Utilizes **₹100 crore investment** in copper cathode plant and **₹203.67 lakhs in infrastructure**, enhancing long-term supply chain control. #### **3. Recycling & Circular Economy** - Owns **Rajputana Industries Limited** (73.91% stake), a metal recycling subsidiary with **13,150 MT/year capacity**. - Processes scrap copper and aluminum into process-ready input, reducing exposure to commodity volatility. - Closed-loop recycling initiatives and **proprietary recycling technologies** support sustainability goals. #### **4. Capacity Expansion & Operational Scale** - **Total consolidated installed capacity**: **46,750 metric tons** (as of Dec 2024, Q3 FY25). - Operates **four modern manufacturing plants**: - 2 in India (Jaipur, Sikar) - 2 through subsidiaries (Zambia, one additional plant) - **Indian facilities** produce winding wires, rods, strips, tubes, busbars, and specialty alloys. - Capacity utilization at **82% in H1 FY25**, with aluminum operations at **91%** and copper at **73%**. --- ### **Product Portfolio & Diversification** #### **Core Products:** - **Winding wires** (enameled, paper-covered) - **Copper & aluminum rods, strips, tubes, bunched wires** - **Advanced busbars, conductors, profiles** - **Brass wires for industrial and defense applications** #### **Recent Product Expansions (India):** - **Solar Ribbons**: Critical for solar cell and panel manufacturing; capex near completion, **trial orders expected soon**. - **Electrical Cables & Conductors**: Pursuing ISI certification; part of **forward integration** strategy. - **Specialty Alloys**: Including bullet shell alloys and high-conductivity copper rods (up to **106% IACS**, exceeding Indian standards) via R&D collaborations with European partners. #### **Target Segments:** - Power Grids & DISCOMs - Transformer & EV Motor OEMs - Renewable Energy (solar, wind) - Defence, Railways, Industrial Motors, and Home Appliances --- ### **Global Market Position & Export Strategy** - **Exports to 15+ countries** across **Africa, Asia, and Europe**; contributes **~6.9% (₹88–90 crore) of FY25 revenue**. - Key export markets: **Middle East, South Africa**, with potential in **China, Malaysia, and Thailand** via Zambia’s **duty-free Chambishi Free Zone**. - Plans to establish **administrative & logistics hubs in Dubai and Hong Kong** to streamline operations across **Africa-India-China corridor**. - Targets **20% overall business growth** through exports, driven by Zambian market integration and new international contracts. --- ### **Financial Highlights (FY25)** | Metric | Value | |-------|--------| | **Consolidated Revenue** | ₹1,279.05 Crore (+45.96% YoY) | | **Net Profit** | ₹22.40 Crore (+59.43% YoY) | | **ROCE** | 27.56% | | **Working Capital Cycle** | 67 Days | | **Capex (FY25-26)** | Over ₹50 Crore | | **Planned Capex (FY26-27)** | ₹100+ Crore (Africa & India) | | **Preferential Allotment Raised** | ₹30.38 Crore | - Revenue growth driven by **22% volume increase and 8–10% pricing**, with **two-thirds growth from volume**. - **Top 10 customers = 43.17% of sales**, indicating strong client concentration with trusted partners. - **Order book: ~₹100 crores/month**, reflecting consistent demand. --- ### **R&D & Sustainability Initiatives** - Developed **oxygen-free high-conductivity copper rods** via in-house up-cast line. - Pursuing **copper alloys with 106% IACS conductivity** for superior performance. - R&D focus on **recyclable alloys, automation, and low environmental impact**. - Investing in **1 MW solar capacity** to power energy-intensive operations. - ERP-driven analytics, real-time pricing (linked to LME), and hedging models optimize operations.