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Tega Industries Ltd

About the Company

Tega Industries Ltd (Tega) is a leading manufacturer and distributor of specialized ‘critical to operate’ and recurring consumable products for the global mineral beneficiation, mining and bulk solids handling industry based on sales as of June 30, 2021. Also, they are the second-largest producer of polymer-based mill liners globally. Their product portfolio comprises more than 55 mineral processing and material handling products. They have six manufacturing sites including three in India- Dahej in Gujarat, Samali and Kalyani in West Bengal, and the other three sites are in major mining hubs of Chile, South Africa and Australia, with a total built-up area of 74,255 sq. mt. Additionally, their joint venture in India with the U.K. branch of Hosch Group, Germany is engaged in precision conveyor belt cleaning and caters to various industries in India. They also have 18 global and 14 domestic sales offices located close to their key customers and mining sites.

Objects of the Issue

* To achieve the benefits of listing the equity shares on the stock exchanges.

Valuation

The global crushing, screening, and mineral processing equipment market was growing at a CAGR of ~7% till 2019 and was estimated at USD 20bn in 2020. But, due to the COVID-19 pandemic, the overall industry witnessed a decline in demand. However, with the reopening of the global economy, the industry is likely to grow at a CAGR of 6.3% and reach USD 36.9bn by 2030. The growth of the mineral processing equipment industry will be driven by the demand for iron ore, copper, and other metals and minerals.

We believe that the company is well placed across the value chain of a mineral processing as it provides a wide range of products and solutions which are critical at different stages of mineral processing. Further, its leadership position, strong R&D, track record of developing innovative product portfolio and marquee global customers are key positives for the company. In the long term, the company intends to gain market share and increase penetration globally in North America, South America, Australia and South Africa. Besides, it has plans to expand its manufacturing unit in Chile, grow product offerings and explore opportunities for inorganic growth. On a financial front, the company’s performance has been strong wherein revenue/PAT grew at a CAGR of 13%/104% between FY19-21 and the growth momentum is expected to continue going forward as well. From a long term perspective, we have a positive view on the company.

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SEBI Registration number is INZ000174330

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