Surya Roshni Limited is a diversified Indian multinational with a **50-year legacy** (est. **1973**). The company has evolved from a steel tube manufacturer into a dominant force across two distinct business verticals: **Steel Pipes & Strips** and **Lighting & Consumer Durables (FMEG)**. Today, it is a **Net Cash Surplus** entity with a global footprint spanning over **50 countries**. --- ### **Market Leadership & Segmental Architecture** SRL operates a balanced portfolio that hedges cyclical industrial demand with steady consumer-facing growth. | Segment | Market Position & Key Metrics | Core Product Portfolio | |:---|:---|:---| | **Steel Pipes & Strips** | **#1** GI Pipe manufacturer in India; **Largest exporter** of ERW pipes; **Top 3** in Black Pipes. | GI Pipes, API Grade (Oil & Gas), 3LPE Coated, Spiral Pipes, Hollow Sections, and CR Strips. | | **Lighting** | **#2** Consumer Lighting brand in India; Leader in Professional/Infrastructure lighting. | LED Lamps, Battens, Smart Lighting, High-mast, and Façade Lighting. | | **Consumer Durables** | Emerging FMEG player leveraging a massive retail footprint. | Fans (BLDC/Induction), Water Heaters, Mixer Grinders, and **Domestic House Wires**. | --- ### **Manufacturing Prowess & Technological Integration** The company operates **6 state-of-the-art facilities** strategically located to optimize logistics and regional penetration: * **Steel Division:** Bahadurgarh (Haryana), Gwalior (MP), Hindupur (AP), and Anjar (Gujarat). * **Lighting & FMEG:** Kashipur (Uttarakhand) and Gwalior (MP). * **R&D Excellence:** The **Surya Technology & Innovation Centre (STIC)** in Noida is a DSIR-approved facility driving indigenous LED innovation and component design. * **Operational Efficiency:** Completed a 100% end-to-end **SAP ERP implementation** in **April 2025** to streamline the supply chain, despite initial integration hurdles. --- ### **Strategic Growth Pillars: Premiumization & Expansion** SRL is executing a multi-year transformation focused on shifting from commodity volumes to high-margin value-added products (VAP). #### **1. Steel Segment: The VAP Shift** * **Capacity Target:** Scaling from **12.76 Lakh MTPA** to **20 Lakh MTPA** by **FY27**. * **Value-Added Mix:** VAP (API, Spiral, and GI pipes) currently contributes **42% to 51%** of revenue, with a long-term target of **60%**. * **Direct Forming Technology (DFT):** Commissioned at Gwalior and Anjar to produce large-diameter section pipes (up to **300x300 mm**) for airports, metros, and smart cities. * **Infrastructure Alignment:** Capitalizing on the **Jal Jeevan Mission** via a new **₹50 crore** Spiral Pipe facility (**24,000 TPA**) and the **City Gas Distribution (CGD)** network expansion. #### **2. Lighting & FMEG: Innovation & Backward Integration** * **PLI Scheme:** SRL has fulfilled the **₹25 crore** investment criteria for LED components, qualifying for **4% to 6%** incentives on incremental sales. * **New Category Entry:** Launched **Domestic House Wires** in **August 2025** with a **₹150 crore** revenue target for Year 1, scaling to **₹500 crore** within 3 years. * **Professional Lighting:** Delivering **20-25% YoY growth**, securing high-visibility projects like the **Atal Setu**, **Kedarnath Temple**, and various smart city contracts. --- ### **Financial Performance & Capital Allocation** SRL has undergone a significant balance sheet deleveraging, transitioning to a **Zero-Debt** status for its long-term liabilities. **Key Financial Metrics (Consolidated):** * **Revenue (FY25):** **₹7,436 crore**. * **EBITDA Margin:** Improved to **9.0%** (Q2FY26) through product mix optimization. * **Net Cash Surplus:** **₹245 crore** (as of Dec 2025). * **Credit Rating:** Upgraded to **CARE AA; Stable** (Long-term) and **CARE A1+** (Short-term). * **Return Ratios:** **ROCE** stands at **17.57%** and **ROE** at **12.65%** (Q3FY26). **Shareholder Value Creation:** * **Bonus Issue:** **1:1 ratio** allotted in **January 2025**. * **Stock Split:** **1:2 split** conducted in **October 2023** (Face Value reduced to **₹5**). * **Dividends:** Consistent payout history, including a **170% dividend** in **FY25** (pre-bonus). --- ### **Distribution Network & Brand Equity** SRL possesses one of the deepest distribution reaches in India, particularly in semi-urban and rural markets. * **Retail Reach:** **250,000+** total retail outlets and **25,000+** dealers. * **Dual-Brand Strategy:** **'Prakash Surya'** (Steel) and **'Surya'** (Lighting/FMEG). * **Brand Ambassador:** Appointed Indian T20i captain **Surya Kumar Yadav** to lead the **'INDIA BOLE SURYA KO YA'** campaign, targeting younger demographics and premium segments. --- ### **Risk Matrix & Mitigation** | Risk Category | Description | Mitigation Strategy | |:---|:---|:---| | **Commodity Volatility** | Fluctuations in **Hot-Rolled Coil (HRC)** prices impact margins. | Increasing the share of VAP and maintaining a lean **61-day** working capital cycle. | | **Global Trade Barriers** | **CBAM** in Europe and quota restrictions in Canada/USA. | Diversifying export markets to the Middle East (**Neom City**) and Southeast Asia. | | **Operational Risks** | ERP integration issues and rising fixed costs. | Stabilization of **SAP** systems and 100% in-house manufacturing of critical LED components. | | **Legal Contingencies** | Pending **Entry Tax** and **Income Tax (₹72.42 crore)** disputes. | No provisions made as initial rulings were in the company's favor; actively contested in High Courts. | | **Sustainability** | Carbon emissions and energy intensity. | Installing **3 MW captive solar power** to meet **40%** of lighting plant energy needs. | --- ### **Future Outlook: FY26 Targets** * **Steel Volume:** **10.5 to 11 Lakh Tons**. * **L&CD Revenue:** **₹1,850 – ₹1,900 crore**. * **Steel EBITDA/Ton:** Target range of **₹5,500 – ₹6,000**. * **CAPEX:** Ongoing **₹500 crore** investment plan (FY25-26) to modernize and expand capacity across all divisions.