Shivalic Power Control Limited
Company
| Website 🔗 |  |
| Business Activity | Manufacture |
| Division | Electrical Equipment |
| Sub-class | Low and High Tension Electrical Panels |
| Location | Faridabad, Haryana |
| Establishment Year | 2004 |
Management
| Managing Director | Amit Kanwar Jindal |
| Educational Qualifications | Bachelor of Engineering (Electrical, Electronic & Power) |
| Experience | Over 23 years of experience in the Electrical Panel Manufacturing Industry |
| Annual Salary | ₹ 21 Lakhs |
| Total Number of Employees | 180 |
About
Shivalic Power Control Limited is an ISO-certified manufacturer specializing in the production of Low Tension (LT) and High Tension (HT) electrical panels.
Products and Services:
Shivalic Power Control Limited boasts a diverse product range, catering to a wide array of industrial needs:
- PCC and Double Busbar PCC Panels: Control and distribute electrical power in industrial facilities.
- MCC & IMCC Panels: Control and protect electric motors in industrial settings.
- Ethernet Ready PCC Panel: Facilitates seamless integration into management systems without extensive wiring.
- AC Drive Panel: Controls the speed and torque of AC motors for energy efficiency and precise control.
- Automatic Change-Over Panel: Ensures uninterrupted power supply by automatically switching to a backup source during outages.
- APFC Panel: Improves power factor for enhanced energy efficiency and cost savings.
- DG Synchronizing Panel: Synchronizes multiple generators for seamless connection to the electrical grid.
- HT Panel: Manages and controls high-voltage electricity distribution in industrial and utility settings.
Clients:
Shivalic’s clientele spans across more than 15 industrial sectors, both within India and internationally. Notable clients include:
- Hewlett Packard
- DCM Shriram
- Rungta Mines
- Reliance Cement
- Kalpataru Power Transmission
- Jindal Steel & Power
- JSW
- Bikaji Foods
- Dabur
- Radico
- Naini Paper
- J K Paper
- Orient Papers
- J K Cement
- Escorts
- Yamaha Motors
Additionally, the company mentions serving clients in Nepal, Bangladesh, and several African countries, further broadening the scope of their end consumers.
Manufacturing Process:
Electrical and Mechanical Designing:
The process commences with the preparation of General Arrangement (GA) drawings by the electrical design team, followed by the mechanical design team generating detailed drawings and programming for the punching process.
Punching and Bending:
Utilizing advanced CNC turret punch presses and bending machines, the company shapes sheet metal components with precision.
Fabrication and Pre-Treatment:
The fabricated parts undergo a crucial pre-treatment process involving cleaning and phosphating to enhance corrosion resistance.
Powder Coating:
A durable powder coating is applied and baked onto the metal parts, providing a robust finish that surpasses conventional paint.
Shell Assembly and Bus Bar Preparation:
The painted parts are assembled into the shell structure using bolted connections, while bus bars are meticulously prepared using high-tech machinery.
Wiring and Final Assembly:
Skilled technicians complete the mounting of electrical components and intricate wiring, followed by the final assembly of covers, lifters, nameplates, and other finishing touches.
Quality Control and Testing:
Rigorous quality checks and electrical testing are performed to ensure compliance with design specifications and safety standards.
Client Inspection and Dispatch:
The finished product undergoes client inspection before being dispatched, adhering to agreed-upon payment terms.
Raw Materials:
Key raw materials include:
- Switchgears
- CRCA Sheets
- Aluminum and Copper Busbars
- Wires
- Paints
Suppliers:
Shivalic maintains strategic tie-ups with prominent Original Equipment Manufacturers (OEMs) for bulk procurement of raw materials and components. Key suppliers include:
- Siemens
- Larsen & Toubro
- ABB
- C&S Electric
- EPCOS
Other Key Aspects:
Authorizations and Partnerships
Shivalic holds authorizations from industry leaders such as L&T, Siemens, Schneider Electric, and TDK. These authorizations enable the company to manufacture fully type-tested panels that comply with international standards like IEC 61439-1&2, IEC 61641, and IS 1893.
Technological Edge
The company’s emphasis on innovation is evident in its Techno Modular Design – Fully Bolted Panels. These panels, constructed with aluminium and copper busbars, offer advantages over traditional welded panels in terms of durability, corrosion resistance, and ease of expansion. Shivalic’s commitment to adopting the latest technologies and manufacturing processes sets it apart in the industry.
3D Busbar Bending:
The company employs advanced 3D busbar bending technology, ensuring precise and efficient shaping of busbars. This leads to optimized electrical conductivity, minimized energy losses, and improved overall panel performance.
Expansion into Data Centers
In recent years, Shivalic has leveraged its expertise to diversify into the burgeoning data centre industry. The company’s ability to design and manufacture advanced electrical panels has enabled it to secure a major order for Low Tension panel works in the RBI Data Center complex at Bhubaneshwar from Hewlett Packard.
Revenue – Category
Revenue – Region
Audit and Legal
Auditor’s Remarks:
There were no material issues or concerns raised by the auditors that would necessitate any adjustments or modifications to Shivalic Power Control Limited’s financial statements.
Non-Compliances and Other Issues:
Delayed Statutory Filings:
The company has been subjected to penalties for delays in filing forms with the Registrar of Companies (RoC). These include forms like CHG-1, ADT-1, ADT-2, AOC4, INC -22, DIR-12, and MGT-14.
Delayed Tax Returns:
Shivalic has also faced penalties and interest charges for late filing of GST, TDS, and EPFO returns. The prospectus provides a table detailing specific instances of delayed GST filings and EPFO contributions.
Contingent Liabilities:
As of December 31, 2023, Shivalic Power Control Limited has contingent liabilities in the form of guarantees amounting to ₹694.87 Lakhs.
Legal Cases:
Cases Filed by the Company
Recovery Suit against Dinesh Electricals & Ors.:
Amount Involved: Rs.78,15,548/– (including interest)
Facts of the Case: Shivalic supplied panels worth Rs.43,74,693/- to the respondent, who failed to pay. Shivalic filed a recovery suit for the unpaid amount plus interest.
Reference Filed with MSME Facilitation Council against Vasu Distributors:
Amount Involved: Rs.67,00,914/-
Facts of the Case: Shivalic supplied goods/services to Vasu Distributors, who failed to pay outstanding invoices. Shivalic filed a reference with the Council for recovery.
Reference Filed with MSME Facilitation Council against Standard Electric Co.:
Amount Involved: Rs.32,76,690/-
Facts of the Case: Shivalic supplied goods/services to Standard Electric Co., which failed to pay an invoice. Shivalic filed a reference with the Council for recovery
Tax Proceedings against the Company:
Assessment Year 2017-18:
Intimations were issued proposing adjustments to the total income due to an incorrect claim in Schedule MAT, with a variance of Rs.18,92,938/-
Current Status: Assessment proceedings are pending, and no demand has been raised yet.
Assessment Year 2019-20:
An intimation was issued proposing adjustments to the total income due to an incorrect claim in Schedule BP, with a variance of Rs.2,69,285/-.
Shivalic filed an appeal against the claim and interest charged.
SWOT Analysis
Strengths
| Technical Expertise and Certifications: Shivalic’s team of engineers and technicians possesses the skills to design and manufacture advanced electrical panels. The company’s ISO certifications (9001:2015, 14001:2015, 45001:2018) further validate its commitment to quality and adherence to international standards. |
| Modern Manufacturing Facility: The company operates from a 125,000-square-foot in-house manufacturing unit equipped with state-of-the-art machinery. This facility enables Shivalic to maintain control over its production processes and ensure product quality. |
| Strategic Partnerships: Shivalic has forged partnerships with industry leaders like L&T, Siemens, Schneider Electric, and TDK. These collaborations provide access to high-quality raw materials, technical expertise, and potential market opportunities. |
| Diverse Product Range: The company offers a wide array of LT and HT electrical panels, catering to the diverse needs of various industrial sectors. This product diversity helps mitigate risks associated with dependence on a single product or market segment. |
| Strong Client Base: Shivalic has built a strong clientele over the years, including prominent names like Hewlett Packard, DCM Shriram, and others. This established customer base provides a stable revenue stream and potential for future growth. |
Weaknesses
| Geographical Concentration: The majority of the company’s revenue comes from the state of Haryana. This geographical concentration exposes the company to risks associated with regional economic downturns or regulatory changes. |
| Working Capital Intensive Operations: Shivalic’s business requires a substantial amount of working capital to manage inventory and trade receivables. This can put pressure on the company’s cash flow and financial stability, especially during periods of economic uncertainty or rapid growth. |
| Lack of Long-Term Contracts: The company primarily operates on a purchase-order basis without long-term contracts with customers. This can lead to revenue volatility and uncertainty in future business prospects. |
Opportunities
| Growth in the Data Center Industry: The increasing demand for data centres presents a significant opportunity for Shivalic to expand its market presence and provide specialized electrical panel solutions for this growing sector. |
| Expansion into EPC Projects: The company has experience in executing EPC (Engineering, Procurement, and Construction) projects and can leverage this expertise to secure larger contracts and enhance profitability. |
| Increasing Global Footprint: Shivalic has already ventured into international markets and can further capitalize on its cost advantages and product diversity to expand its global presence and tap into new customer segments. |
Threats
| Intense Competition: The electrical panel manufacturing industry is highly competitive, with both domestic and international players vying for market share. Shivalic must continuously innovate and maintain cost competitiveness to thrive in this environment. |
| Raw Material Price Volatility: The prices of raw materials, especially aluminium and copper, can be volatile. Any significant price increases could affect Shivalic’s profitability if they are unable to pass on these costs to customers. |
| Technological Obsolescence: Rapid technological advancements in the industry could render Shivalic’s products or manufacturing processes obsolete if they fail to keep pace with innovation. |
Porter’s Five Forces1
| Threat of New Entrants | MODERATE |
| The electrical panel manufacturing industry has a moderate barrier to entry. While setting up a manufacturing unit requires significant capital investment, the availability of technology and skilled labour can make it feasible for new players to enter the market. Additionally, the presence of established players like Shivalic and the need to gain certifications and approvals can pose challenges for new entrants. |
| Bargaining Power of Suppliers | MODERATE |
| Shivalic has strategic tie-ups with major OEMs for direct procurement of key components, which reduces its dependence on individual suppliers. However, the company still relies on other vendors for certain raw materials, and any disruptions in its supply chain or price fluctuations could impact Shivalic’s operations and profitability. |
| Bargaining Power of Buyers | MODERATE |
| The bargaining power of buyers is likely to be moderate. While Shivalic serves a diverse clientele across various industries, the presence of large corporate clients and the potential for bulk orders can give buyers some leverage in negotiating prices and terms. However, the company’s ability to offer customized solutions and its focus on quality can help mitigate this bargaining power to some extent. |
| Threat of Substitute Products or Services | LOW |
| The threat of substitute products is relatively low in the electrical panel manufacturing industry. While alternative power distribution and control solutions exist, electrical panels remain essential components in various industrial and commercial settings. The specialized nature of these panels and the need for safety and compliance further limit the viability of substitutes. |
| Rivalry Among Existing Competitors | MODERATE – HIGH |
| The market comprises both domestic and international players, and competition is based on factors like price, quality, customization capabilities, and after-sales service. Shivalic’s focus on quality, innovation, and customer satisfaction helps it differentiate itself in the market, but it needs to remain vigilant and adapt to changing market dynamics to stay ahead of the competition. |
Peer Comparison
The company’s performance on various financial and operational metrics compared to its peers is as follows:
| Metric | Shivalic Power Control Limited | Saakshi Medtech And Panels Limited | Marine Electricals (India) Limited |
| Revenue from Operations (₹ in Crores) | 102 | 122 | 622 |
| Operating Profit Margin (%) | 19 | 16 | 8 |
| Return on Equity (ROE) (%) | 33.8 | 26.8 | 11.2 |
| Return on Capital Employed (ROCE) (%) | 29.9 | 26.6 | 15.4 |
| Debt to Equity Ratio | 0.78 | 0.19 | 0.39 |
Green Box
IPO Funds:
Working Capital Requirements:
A significant portion of the proceeds, ₹30.03 Crores, will be allocated to meet the company’s working capital needs. This includes managing inventory, trade receivables, and other short-term operational expenses.
Capital Expenditure:
The company plans to invest ₹7.64 Crores in capital expenditure. This investment will be used for:
1. Constructing a new assembly line by shedding the roof of the existing manufacturing unit (₹1.82 Crores).
2. Procuring new machinery to enhance production capacity and efficiency (₹5.82 Crores).
Strategic Acquisitions:
Shivalic Power Control Limited intends to use a portion of the IPO proceeds for inorganic growth through acquisitions in the power control panel or cable manufacturing industries.
Participation in Business Exhibitions:
Shivalic Power Control Limited actively participates in various business exhibitions to showcase its products and capabilities, increasing brand visibility and generating leads.
Focus on Customization: Shivalic’s ability to tailor its products to specific customer applications allows it to target diverse market segments and gain a competitive advantage.
Industry Outlook:
The global electric control panel market is projected to expand from $5.47 billion in 2023 to $7.79 billion in 2028, exhibiting a robust compound annual growth rate (CAGR) of 7.3%.
The Indian electrical equipment market, encompassing a broader range of products, is also anticipated to experience substantial growth. It is estimated to expand at a CAGR of 11.68% between 2022 and 2027.
Focusing specifically on the Low Voltage (LV) switchgear market, a segment relevant to Shivalic’s operations, it is expected to grow at a CAGR of over 5% in the next four years.
Amber Box
Non-Compliance with Quality Standards:
Shivalic Power Control Limited operates under strict quality requirements and is subject to inspections and audits by OEMs (Original Equipment Manufacturers). Failure to meet these standards could result in the cancellation of tie-ups with OEMs, leading to financial losses and reputational damage.
Capacity Utilization:
As of December 31, 2023, Shivalic Power Control Limited’s capacity utilization rate was 30.56%.
Negative Operating Cash Flow:
Shivalic has experienced negative cash flows from operating activities in FY 2024. While they attribute this to specific factors like increased working capital requirements, it raises concerns about the company’s ability to generate sufficient cash to sustain its operations and growth without relying heavily on external financing.
Industrial Laws:
The company’s operations are subject to regulations under the Micro, Small and Medium Enterprises Development Act, 2006, and the Industrial (Development and Regulation) Act, 1951. Any changes in these laws or their interpretation could affect Shivalic’s classification as an MSME or its licensing requirements, potentially impacting its operations and access to benefits.
Red Box
Customer Concentration:
The company’s revenue is heavily reliant on a small number of clients. In the period ending December 31, 2023, its top ten clients accounted for 40.77% of total revenue.
Limited Financial Resources:
As a relatively small company, Shivalic may have limited financial resources compared to larger competitors. This could hinder its ability to invest in research and development, marketing, or capacity expansion, potentially limiting its growth potential.
Images
- The force value of “LOW” is considered good Click Porter’s Five Forces article for more information. ↩︎
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