Oswal Pumps Limited (MAINBOARD)

Oswal Pumps IPO Details

Company Financials

Company Overview

• Incorporation: 2003

• Business: Manufacturer and distributor of pumps for domestic, agricultural, and industrial applications.

• Product Range:

  • Solar pumps, submersible pumps, monoblock pumps, pressure pumps, sewage pumps

  • Electric motors, submersible winding wires & cables, electric panels

Key Highlights (as of 2024)

• PM-KUSUM Scheme: Executed 26,270 turnkey solar pumping systems for states like Haryana, Rajasthan, Uttar Pradesh, and Maharashtra (as of Aug 31, 2024).

• Manufacturing Facility: Located in Karnal, Haryana (41,076 sq. meters as of Mar 31, 2024).

• Distribution Network:

  • 636 distributors in India (up from 473 in 2022).

  • Exports to 17 countries (Asia-Pacific, Middle East, North Africa) between 2021-2024.

• Workforce: 164 employees (as of Mar 31, 2024).

Growth & Expansion

• Strong focus on solar pumps (aligned with govt. schemes like PM-KUSUM).

• Expanding distribution & exports, indicating market diversification.
  
   

  Key Takeaways:

  1. Major Focus on Expansion – Over ₹4.19 billion allocated to Oswal Solar for new manufacturing units, indicating a push for scaling solar pump production (aligned with PM-KUSUM demand).

  2. Debt Reduction – Significant portion (₹2,350 million + ₹260 million) for repaying borrowings, which could improve financial health.

  3. Capex & Growth – Funds for internal capex (₹893.69 million) suggest upgrades in existing facilities.

  4. Flexibility – "General corporate purposes" allows strategic spending as needed.
      

     Why It Matters?

     • Solar Pump Push: Reinforces commitment to PM-KUSUM scheme and renewable energy.

     • Debt Relief: Lower interest burden post-IPO could boost profitability.

     • Manufacturing Expansion: Strengthens capacity to meet rising demand.

Strength

Weakness