Sree Rayalaseema Hi-Strength Hypo Limited (SRHHL) is a leading Indian manufacturer of industrial chemicals and a power generator. Operating primarily through a **B2B marketing model**, the company serves as a critical supplier of industrial inputs to manufacturing units globally, utilizing a mix of direct sales and a strategic trader network for market penetration. --- ### Core Business Segments & Revenue Drivers While the company maintains a diversified portfolio, the **Chemicals** segment remains the primary engine of growth, contributing over **90%** of total turnover. * **Chemicals:** Production of Calcium Hypochlorite (**Hi-Strength Hypo**), Stable Bleaching Powder (**SBP**), Sulphuric Acid, Chloro Sulphonic Acid (**CSA**), Sodium Methoxide, Sodium Hydride, and Oleum. * **Power Generation:** A mix of conventional and renewable energy assets including **Wind**, **Solar**, and **Thermal** power. * **Real Estate:** An emerging vertical where the company is identifying and exploring new development opportunities. * **Strategic Divestment:** As of **May 28, 2024**, the company officially **stopped its Coal Trading business** to mitigate risks associated with price volatility. --- ### Manufacturing Infrastructure & Asset Base All manufacturing facilities are concentrated in the Kurnool District of Andhra Pradesh, India, providing centralized operational control. | Facility Type | Location | Details | | :--- | :--- | :--- | | **Chemical Plants** | Gondiparla, Kurnool, AP | 2 SBP plants, 3 Sulphuric Acid plants, CSA, and Calcium Hypochlorite units. | | **Specialty Chemicals** | Gondiparla, Kurnool, AP | Sodium Methoxide and Sodium Hydroxide plants. | | **Gas Bottling** | Gondiparla, Kurnool, AP | Hydrogen Gas bottling unit. | | **Thermal Power** | Gondiparla, Kurnool, AP | **10 MW** plant (Decision to **shut down and dispose** made in **Aug 2025**). | | **Solar Power** | Gondiparla, Kurnool, AP | **5 MW** plant. | | **Wind Energy** | Tamil Nadu | **7** Wind energy generators. | --- ### Strategic Pivot: Semiconductors, Electronics, and Green Energy SRHHL is undergoing a significant transformation, amending its **Memorandum of Association (MOA)** to enter high-technology sectors and sustainable energy. * **Electronics & Semiconductors:** The company has mandated entry into the manufacture of **Printed Circuit Boards (PCBs)**, electronic components, and **Assembling, Testing, Marking & Packaging (ATMP)** of semiconductors. * **Electronics Manufacturing Services (EMS):** Intent to provide end-to-end manufacturing solutions for the global electronics industry. * **Green Hydrogen:** Planning production via water electrolysis to replace carbon-intensive hydrogen production methods. * **Nutraceuticals:** Commercial-scale production of **Spirulina** (high-protein algal products) is slated to commence shortly. --- ### Chemical Portfolio & Process Innovation The company leverages internal R&D and technical partnerships to drive import substitution and cost leadership. * **Sulphuric Acid (H2SO4):** Operates three plants. SRHHL is the first in the Indian industry to implement a **0.5 micron aperture candle Micro Filter** to reduce product turbidity. * **Sodium Methoxide Expansion:** In **March 2024**, capacity for Sodium Methoxide solution increased from **900 MT to 1,100 MT** per month, and powder from **150 MT to 300 MT** per month. * **DCDA Production:** Partnering with **CSIR-IICT, Hyderabad** for India’s first commercial production of **DiCyana Di Amide (DCDA)**; the company is seeking **exclusive commercialization rights**. * **Sodium Metal:** A new vertical with commissioning activities initiated as of **August 2024**. * **Calcium Hypochlorite:** Optimized through modified **size separation systems** and high-grade disinfection standards (**NSF/ANSI certified**). --- ### Operational Efficiency & Sustainability Initiatives SRHHL integrates waste recovery and energy conservation to maintain its competitive edge. * **Zero Liquid Discharge (ZLD):** Utilizes Multiple Effect Evaporators (**MEE**) and crystallizers to ensure total water reuse. * **Energy Conservation:** - **Waste Heat Recovery:** Power is generated via **Back Pressure Turbines** using steam from Sulphuric Acid Plant-1. - **VFD Implementation:** Variable Frequency Drives on pumps save approximately **1,000 Kw per day**. - **Pump As Turbine (PAT):** Equipment in Sulphuric Acid Plant-3 generates power from cooling water return lines. * **Resource Recovery:** A new full-scale plant recovers **Calcium Hypo Chlorite** from **6 additional byproduct streams**, reducing raw material dependency. * **Infrastructure Upgrades:** Transitioning to **Electric Heat Tracing** and **Coils less Melter systems** to prevent sulphur line choking and leakages. --- ### Financial Performance & Capital Structure The company maintains a robust, **zero-debt capital structure** with a focus on internal accruals for expansion. | Particulars (₹ Crores) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Turnover** | **637.82** | **866.01** | **1,650.11** | | **Profit Before Tax (PBT)** | **124.36** | **108.73** | **190.48** | | **Total Equity** | **-** | **800.61** | **750.93** | | **Debt to Equity Ratio** | **-** | **0.00** | **0.00** | **Segment Revenue Trends (FY25):** * **Calcium Hypo Chloride:** **₹320.59 Crores** (Primary revenue contributor). * **Stable Bleaching Powder:** **₹71.24 Crores** (Up **8.95%** YoY). * **Sodium Methoxide:** **₹40.25 Crores**. * **Coal Trading:** Dropped to **₹8.86 Crores** (from **₹182.10 Crores**) following the exit decision. **Shareholder Value & Credit:** * **Dividend:** Recommended **Final Dividend of ₹3/- per equity share** (**30%**) for FY 2024-25. * **Credit Rating:** Holds **CRISIL A/Stable** (Long-term) and **CRISIL A1** (Short-term). --- ### Risk Management & Governance SRHHL employs a **Special Team of Senior Executives** to oversee an enterprise-wide risk framework. * **Market & Currency Risk:** Manages **USD** exposure through **natural hedging** (balancing imports and exports). A **5%** fluctuation in USD impacts profit by approximately **₹47.17 Lakhs**. * **Regulatory Shifts:** In **November 2025**, new **Labour Codes** resulted in a one-time exceptional charge of **₹3.22 crore** for gratuity liabilities. * **Environmental Compliance:** Fulfills **Extended Producer Responsibility (EPR)** targets by purchasing credits from authorized recyclers. * **Leadership:** Following the resignation of **Sri T.G. Bharath** (appointed as State Minister) in **June 2024**, **Smt. T.G. Shilpa Bharath** assumed the role of **Chairperson and Managing Director**. * **Related Party Transactions:** Approved transactions with **M/s TGV SRAAC Limited** up to **₹460 crores** for **FY 2025-26**. --- ### Future Growth Outlook | Project / Initiative | Status / Objective | | :--- | :--- | | **Sodium Methoxide Powder** | Scaling from **5 TPD** to **10 TPD** via 4 new dryers. | | **Sulphuric Acid Plant - 1** | Capacity increased to **200 TPD** via new Electric Air Blower. | | **Sulphuric Acid Plants - 2 & 3** | Target expansion to **300 TPD** each. | | **Sulphur Recovery** | Partnering to recover salable sulphur from sludge. | | **Order Book** | **₹8.77 Crores** in remaining performance obligations as of March 2025. |