Fabtech Technologies Cleanrooms Limited
Company
| Website 🔗 |  |
| Business Activity | Manufacture |
| Division | Design-to-build Cleanroom solutions |
| Sub-class | Pre-engineered modular panels and doors |
| Location | Umbergaon, Gujarat |
| Establishment Year | 2015 |
Management
| Managing Director | Ausaf Ahmed Usmani |
| Educational Qualifications | SSC examination from the Maharashtra State Board of Secondary and Higher Secondary Education |
| Experience | More than a decade in the field of engineering and sales sectors |
| Annual Salary | ₹ Lakhs |
| Total Number of Employees | 117 Export to Sheets |
About
Fabtech Technologies Cleanrooms Limited is an Indian manufacturer specializing in the design-to-validation of pre-engineered and pre-fabricated modular panels and doors for cleanrooms in the pharmaceutical, healthcare, and biotech sectors.
Products and Services:
Cleanroom Solutions: Design and install modular wall panels, view panels, doors, risers, and ceiling panels, along with heat ventilation and air conditioning (HVAC) systems and electrification works.
HVAC Systems: Design and installation of HVAC systems.
Electrification Works: Design and installation of electrical systems, control panels, lighting, power distribution, automation, and control systems.
Clients:
Fabtech Technologies Cleanrooms Limited primarily serves clients in the pharmaceutical, healthcare, and biotech sectors. Some major clients include:
- Unichem Laboratories Limited
- Desano Pharmaceuticals Private Limited
- Apitoria Pharma Private Limited
- Hamdard Laboratories (India)
Manufacturing Process:
Design: Design the cleanroom according to the client’s requirements and global regulatory standards.
Engineering: Engineer the cleanroom solutions, including HVAC and electrification.
Manufacturing: Manufacture the pre-engineered and pre-fabricated modular panels and doors.
Quality Assurance: Conduct quality checks throughout the manufacturing process.
Delivery: Deliver the cleanroom solutions to the client’s site.
Installation: Install the modular panels, doors, HVAC system, and electrification.
Commissioning: Commission the cleanroom to ensure it is operational.
Validation and Certification: Validate the cleanroom to ensure it meets the required standards.
Raw Materials:
- Pre-painted galvanized iron steel coil (PPGI)
- Pre-coated galvanized iron coil (PCGI)
- Puff material Rockwool Panel profile
- Hardware (screws, rivets, etc.)
Suppliers:
Fabtech Technologies Cleanrooms Limited does not disclose the names of its suppliers due to commercial sensitivity. However, it confirms that it does not import any raw materials and sources them all domestically.
Other Key Aspects:
Manufacturing Facilities: The company has a manufacturing facility in Umbergaon, Gujarat, with a total area of approximately 70,000 square feet. The plant has machinery, including a roll-forming machine, an Amada Punch Press CNC-based machine, a powder coating plant, an Amada Brake Press CNC-based machine, and puff filling and puff press machines.
Certifications: The company is ISO 9001:2015 certified.
Achievements: The company has achieved FM Global certification for its cleanroom products, ensuring compliance with fire safety measures.
Awards: The company has not received any major awards.
Manufacturing Process Flowchart
Revenue – Category
Revenue – Region
Audit and Legal
Auditor’s Remarks:
The auditors have issued an unqualified opinion on the company’s financial statements
Non-Compliances and Other Issues:
- Pending Trademark: As of the date of the Red Herring Prospectus, the company’s logo is not registered.
- Payment of Statutory Dues: There have been instances of delays in the payment of statutory dues, including income tax, goods and services tax, and provident fund dues.
Contingent Liabilities:
| Particulars | As of September 30, 2024 | As of March 31, 2024 |
| Performance bank guarantees | 85.53 | 23.24 |
| Corporate guarantees | 100 | 100 |
| Advance bank guarantees | 397.61 | 179.75 |
| Total | 583.13 | 303 |
Legal Cases:
Cases Filed Against the Company
Criminal Case: An FIR was filed against the company and others for the accidental death of a worker. An Employee Compensation Act case was also filed by the deceased’s family against the company and others claiming compensation. The insurance company has paid compensation to the deceased’s family, and the ECA case was disposed of. The FIR still stands open.
Revision Application: The company and its directors have filed a revision application against an order in a summons warrant case filed against them for alleged fraud and misuse of security deposit cheques.
Commercial Suit: A commercial suit for recovery has been filed against the company and its directors for alleged non-compliance due to delay in delivery of purchase orders and supplying defective goods.
Cases Filed by the Company
Tax Proceedings against the Company:
Tax Proceedings: The company is involved in three direct tax cases.
SWOT Analysis
Strengths
| Advanced Manufacturing Infrastructure: The company has a well-equipped manufacturing facility with a range of high-performing machinery, enabling efficient production of cleanroom solutions. |
| Long-Term Customer Relationships: The company has built strong relationships with major pharmaceutical, healthcare, and biotech companies, ensuring a stable client base. |
| Diverse Domain Expertise: The company possesses expertise in various domains, including design, engineering, manufacturing, installation, and validation of cleanroom solutions. |
Weaknesses
| Dependence on Key Customers: The company derives a significant portion of its revenue from a limited number of customers, posing a risk if any of these relationships are disrupted. |
| Dependence on Suppliers: The company is dependent on a limited number of suppliers for its raw materials, which could impact production if supply chain issues arise. |
| High Working Capital Requirements: The company’s business requires a substantial amount of working capital, which could strain its financial resources. |
| Lack of Long-Term Contracts: The company does not have long-term contracts with all of its customers and suppliers, which could lead to uncertainty in future business. |
Opportunities
| Industry Growth: The cleanroom industry is experiencing robust growth, providing opportunities for the company to expand its market share and enter new segments. |
| Inorganic Growth: The company can pursue strategic acquisitions and partnerships to enhance its capabilities and expand into new markets and regions. |
| Technological Advancements: The company can leverage technological advancements in cleanroom solutions to offer innovative and cost-effective products and services. |
| Expanding into New Markets: The company can explore new geographical markets and industry segments to diversify its customer base and reduce its dependence on a few key customers. |
Threats
| Competition: The company faces competition from established players in the cleanroom industry, which could impact its market share and profitability. |
| Economic Downturn: An economic slowdown or recession in the industries it serves could reduce demand for the company’s products and services. |
| Raw Material Price Fluctuations: Volatility in raw material prices could impact the company’s profitability and financial performance. |
Porter’s Five Forces1
| Threat of New Entrants | LOW – MODERATE |
| The cleanroom industry requires significant capital investment and a high level of technical expertise, which acts as a barrier for new entrants. |
| Bargaining Power of Suppliers | MODERATE |
| The company sources raw materials domestically, and the availability of numerous suppliers reduces the bargaining power of individual suppliers, but finding suppliers with quality raw materials can be challenging. |
| Bargaining Power of Buyers | MODERATE |
| The presence of a few large players in the market gives buyers moderate bargaining power. |
| Threat of Substitute Products or Services | MODERATE |
| Alternative products and technologies could potentially act as substitutes, posing a moderate threat. |
| Rivalry Among Existing Competitors | HIGH |
| The industry is highly competitive, with the presence of several large and established players in both domestic and international markets. |
Peer Comparison
There are no listed companies that have business operations similar to those of Fabtech Technologies Cleanrooms Limited.
Green Box
Competitive Advantage: The company’s focus on quality, timely project completion, and end-to-end solutions give it a competitive advantage in the industry.
IPO Funds:
Funding of Working Capital: ₹1,400.00 lakhs to meet long-term working capital requirements.
Acquisition: ₹550.00 lakhs for the acquisition of equity shares of Kelvin Air Conditioning and Ventilation Systems Private Limited.
Industry Outlook:
The Indian cleanroom technologies market is expected to grow at a CAGR of 8.3% between 2023 and 2030. The market is driven by several factors, including stringent regulations, the increasing importance of maintaining clean environments, and technological advancements.
Amber Box
Competitive Disadvantage: The company’s high dependence on a few large customers and the absence of long-term contracts with suppliers could be potential disadvantages.
Capacity Utilization:
The current installed capacity for the manufacturing of cleanroom panels is 3,45,000 square feet per annum, and the capacity utilization for Fiscal 2024 was 48.2%.
Red Box
Negative Operating Cash Flow:
The company has experienced negative operating cash flows in FY 2022, 2023 and 2024.
Images
- The force value of “LOW” is considered good Click Porter’s Five Forces article for more information. ↩︎
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