### **Overview** Tembo Global Industries Ltd. (TGIL), incorporated in 2010, is a diversified Indian industrial manufacturing and engineering company headquartered in Maharashtra. The company operates across four key business segments: **Engineering Solutions & EPC, Defence Solutions, Solar Power, and Textiles**. With a strategic focus on value creation and margin-accretive growth, Tembo is transitioning from a traditional engineering and trading business into a high-growth player in precision engineering, renewable energy, and defense manufacturing under the "Make in India" initiative. --- ### **Core Business Operations** #### **1. Engineering Solutions & EPC** - **Product Portfolio**: Tembo manufactures and fabricates specialized metal products including: - Heavy-duty clamps, pressure vessels, industrial machinery, and storage tanks. - Pipe Support Systems, Fasteners, Anchors, HVAC, Anti-Vibration Systems, and ERW pipes. - Ductile Iron (DI) pipes, HDB pipes & fittings, MS plates, and sanitary wares. - **Applications**: Used in construction (bridges, offshore platforms), shipbuilding, mining, refineries (MEP, fire & safety), oil & gas, aerospace, automotive, and utilities. - **Customers & Markets**: Serves both domestic and international clients across India, the USA, UAE, Saudi Arabia, and the Middle East. Key clients include L&T, Kalpataru, Tata Projects, RDC-Maldives, and Woodbridge & Supply (USA). - **Certifications**: Products hold **UL (USA)** and **FM Approval (USA)** certifications for fire sprinkler systems—making Tembo one of the few Indian manufacturers with both approvals. Facilities are **ISO 9001:2015** certified. - **Exports**: Recognized as a **2-Star Export House** by the Government of India; exports engineering products to the USA and Middle East. - **Capacity & Expansion**: - Current capacity: **18,000 MTPA** (upgraded from earlier 15,000 MTPA). - A **greenfield plant in Vasai** under construction will increase total capacity to **90,000 MTPA**, expected to be fully commissioned by **end of Q4 FY26 (March 2026)**. - Capital expenditure for the Vasai facility: **INR 75 crores** (partially debt-funded). - This sixfold capacity expansion aims to support long-term, high-margin projects and integrated engineering solutions. #### **2. EPC (Engineering, Procurement & Construction)** - Entered the EPC sector in 2023 through **Tembo Global Infra Ltd.**, its dedicated project execution arm. - Active in infrastructure projects such as water irrigation, fuel farms, refinery piping, HVAC, and MEP packages. - Key projects include: - Subcontracting for a **World Bank-funded water treatment plant** in northern India. - Execution of the **Maldives Jetty Project** via **Tembo Pes Joint Venture Private Limited**, expected to be completed in Q2 FY26. - Focus on mid-sized EPC projects, capitalizing on gaps left by larger players who rely on secondary contractors. - Strategic expansion into EPC and PPA-based solar models for long-term stable cash flows. --- ### **Strategic Diversification (High-Growth Verticals)** #### **1. Defence Solutions** - **Entry into Defence**: Officially entered the sector in FY25, with manufacturing set to commence in FY26. - **Vision**: To become a world-class Indian manufacturer of **small arms and ammunition** under the **"Make in India"** initiative. - **Investment**: Plans to invest **INR 1,000 crores** over three years to establish manufacturing capability. - **Partnerships**: - Signed an **MoU with the Government of Maharashtra** to set up a defense manufacturing unit, with land support (100 acres via MIDC, Amravati). - Formed a strategic **technology and production buy-back partnership with a leading European defense firm** via MoU—ensuring 100% of production output will be purchased. - **Subsidiary**: **Tembo Defence Products Pvt. Ltd.** incorporated in Feb 2024 to drive defense ventures. - **Leadership**: Led by **Col. K.V.S. Tanwar (Retd., VSM)** and **Col. Aamit Awasthi (Retd.)**, bringing expertise in defense procurement and operations. - **Future Plans**: Technology absorption, innovation, indigenous production, and eventual global export of defense products. #### **2. Solar Power** - **Entry in 2024**: Expanded into renewable energy via Special Purpose Vehicles (SPVs). - **Projects**: - Secured a **120 MW PPA with MSEDCL (Maharashtra)** under a **25-year agreement**, commissioning expected by **end of FY26**. - Land acquired for **21 out of 30 proposed solar sites**, with financing under advanced stages. - **Financing**: - Total CAPEX: **INR 640–700 crores**. - Structure: INR 120–130 cr equity, INR 420–470 cr debt, and ~INR 100 cr expected government subsidy post-commissioning. - Financial closure in progress, with **IREDA-led funding of ~INR 471 crores** and total debt approvals exceeding **INR 600 crores**. - **Leadership**: Headed by **Richa Varshney**, a seasoned energy professional with 16+ years in green energy sector. - **Business Model**: Combines **EPC execution capability** with **long-term PPA-based revenue**, targeting operational excellence in clean energy. - **Market Opportunity**: Aligns with India’s 300 GW solar target by 2030 and global solar market projected to exceed $300 billion. --- ### **Textiles Business (Legacy but Profitable)** - **Operations**: Processing and supply of **fibres and yarn** to domestic and international clients, including importers, retailers, brands, and private-label manufacturers. - **Exports**: Initiated in FY24, growing steadily with clients in Saudi Arabia, UAE, and India. - **Order Book (as of Sept 30, 2025)**: **INR 115 crores**, with **revenue target of INR 300 crores for FY26**. - **Future Strategy**: - Viewed as a **legacy, low-EBIT (2.4%) but profitable segment**. - Plans to establish **in-house yarn manufacturing post-FY27** to capture demand. - Exploring **demerger or separation** to unlock value and focus on high-margin engineering, EPC, solar, and defense segments. --- ### **Global Expansion & Partnerships** - **Middle East & Gulf**: - Strategic **partnership with MASAH Company (Saudi Arabia)** through **Man-Tembo Industries** joint venture. - Targeting **Solar and Defence opportunities in Gulf countries**. - Signed agency agreements, including a recent deal in **Kuwait**, to expand EPC and engineering solutions. - **Egypt**: Operates **Tembo Global LLC** to support export marketing. - **Europe**: Active R&D and technology collaboration with European defense and solar technology partners. --- ### **Financial & Operational Highlights (Nov 2025)** | Metric | Value | |-------|-------| | **Order Book (As of Sept 30, 2025)** | **INR 1,450 crores** (overall), including Textile: INR 115 cr | | **Bidding Pipeline / L1 Status** | Over **INR 2,150 crores**, providing multi-year revenue visibility | | **Major Projects in Pipeline** | - INR 600 crore EPC project (INR 24 cr awarded, INR 50 cr under negotiation)<br>- Maldives Jetty Project<br>- Water irrigation contracts (INR 50–53 cr awarded in Dec’24 and Jan’25) | | **FY25 Revenue** | **INR 743 crores** (69.5% YoY growth), driven by 1.9x growth in Engineering segment | | **Q3 FY25 Revenue** | INR 164.5 crores (+42.6% YoY), with 190.9% surge in Engineering | | **Workforce** | 80+ engineering professionals; experienced leadership with 40+ years of collective industry experience |