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Company Background

Kilburn Engineering Limited (KEL), incorporated in 1987, is engaged in designing, manufacturing and commissioning of customised equipment and systems viz. industrial drying system, packaged system, fabricated and large critical process equipment systems for diverse applications in industries such as Chemicals, Petrochemicals, Oil & Gas, Refineries, Power, Steel, Cement, Fertilizer, Pharmaceuticals, Mining, Sewage Treatment, FMCG, Tea, Food Processing, Metal Recycling etc. Recently KEL has completed acquisition of M.E. Energy Pvt Ltd. (MEPL), a leading player in waste heat recovery and reutilisation systems. KEL has two manufacturing facilities in Kalyan and Pune (MEPL) in Maharashtra and has done above 3,000 installations globally. It derives ~15% of its revenues from exports.

Investment Rationale

Favourable Industry tailwinds with management focus on catering to growing industries

KEL is well positioned for 3 dimensional benefits amidst China+1 strategy, GOI’s PLI scheme and cost pressures in Europe. Multi sectoral capex is set to spark up demand for customised equipments, going forward.

The company caters to 15+ sectors including growth sectors like Carbon Black, Soda Ash, API’s, Petrochemicals, Metal recycling and Sewage Treatment which are expected to grow at high teens CAGR over the next 5-6 years, backed by enduring demand driven by huge capacity expansion in these sectors. The export market is worth ~$ 2-3 bn and the company is thriving hard to increase its export revenues to 25% from the current 15%.

Proven experience with diverse product profile and market leadership

KEL has over 3 decades of experience in manufacturing of Rotary Dryers, Calciners, Fluid Bed Dryers, Flash Dryers, Spray Dryers, Band Dryers, Vibrating Fluid Bed Dryers, Tea Dryers, Coconut Dryers and Coolers. The product range are majorly customised like Air/Gas/Liquid Drying systems, Solvent/Vapour Recovery Systems, Instrument Utility Gas Drying Systems, Gas Conditioning Systems, Pneumatic conveyors, Silos, Vibratory Conveyors and Feeders, Pressure Vessels, Heat Exchangers and Reactors. KEL is a market leader in solid, liquid and gas drying systems and its core strength lies in the successful assimilation of new technologies through continuous R&D and development of innovative products that comply with international standards for end-user industries.

Transformation into a professionally run company

Post Covid, KEL has transitioned itself into a professionally managed organisation. This has resulted in faster decisionmaking, strong internal processes like documentation and a foray into additional product areas, leading to a substantial improvement in its performance. In its new avatar, KEL is supplying a full packaged solution instead of supplying only machinery earlier, resulting in bidding for high value orders and earning better margins. The acquisition of MEPL has also inducted highly skilled workforce coupled with experienced key managerial persons on board from various reputed companies.

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SEBI Registration number is NOS : NSE : INB/INF 230707532