Amber Enterprises India Limited – a prominent solution provider for Air conditioner OEM/ODM Industry in India – is planning to raise INR 600 Cr (475 Cr of Fresh Issue + 125 Cr of OFS) via initial public offer (IPO)
Amber Enterprises – Company Profile
Started in the year 1990, Amber Enterprises is Punjab based manufacturer of air conditioners and its component in India. With the market share of more than 55%, Amber Enterprises is the market leader in the Room Air Conditioner (RAC) design and manufacturing. The Company manufactures these RAC’s for 8 out of the 10 top RAC brands in India including Whirlpool, Voltas, Panasonic, LG, Hitachi, and Daikin.
Working Area
- Amber Enterprises has a dominant presence in RACs complete unit and deals in major RAC components with 10 manufacturing facilities across India focusing in on different product segments.
- With expertise in components like heat exchangers, sheet metal components, injection molding components, and system tubing and motors, Amber Enterprises is strongly positioned with its backward integration to derive the core deliverable’s in terms of quality, cost & delivery.
- The Company offer higher energy efficiency and expertise in indoor, outdoor, split and window AC units.
Amber Enterprises – Product Portfolio
- RACs – The Company design and manufacture complete RACs including window air conditioners and indoor units and outdoor units of split air conditioners with specifications ranging from 0.75 ton to 2 tons, across energy ratings and types of refrigerant. The Company design and manufacture Inverter RACs too.
- RAC Components – Amber manufacture reliable functional components of RACs that includes heat exchangers, motors and multi-flow condensers with other Components such as sheet metal components, copper tubing and including plastic extrusion, vacuum forming and injection molding processes too.
- Non AC Components – The Company manufacture components other durables and automobiles such as case liners for refrigerator, plastic extrusion sheets, sheet metal components for microwave, washing machine tub assemblies with other sheet metal and plastic injection molding and extrusion components for automobiles and metal ceiling industries.
Amber Enterprise – Till Now
1990: Amber Enterprise was incorporated as a private limited company.
1994: The first factory at Rajpura was established
2001-02: Started manufacturing RAC as OEM
2003-04: Started Dehradun Plant for RAC manufacturing
2004: Dehradun Factory Unit 4 established and started manufacturing of sheet metal components for captive usage
2005-06: Started manufacturing MWO
2008: Started Noida Ecotech Unit – added Plastic extrusion & vacuum forming in product portfolio
2007-08: Started manufacturing heat ex-changers for captive usage & supply as component
2009: Dehradun Factory Unit 5 was established – to build on capacities for ODM , finished goods
2010: Kasna Unit, Kalamb Unit and Pune Unit established – started sheet metal component supplies to customers
2010: Dehradun Factory Unit 6 was established – to build on capacities for ODM, finished goods
2012: Jhajjar Unit was established – to expand geographical presence & add new customer base
2012: Acquired PICL – a electrical motor manufacturing company
2013-2016: Major Focus on Product range expansion in ODM finished goods category
Recent Awards
- Best of Best performance award from LG, 3 years in a row YR 14, YR 15, & YR 16
- Vendor Performance excellence award from Bluestar: FY’16
- Business Innovation award from Panasonic: FY’16
- Outstanding performance award from Panasonic: FY’14
- Green supply Chain Company from GODREJ: FY’16
Company Promoters
- Jasbir Singh,
- Daljit Singh
IPO Opening / Closing Dates & Listing
IPO Details – Price, Minimum Bid and Other
Financial Performance
Revenues
Amber Enterprise shows steady revenue growth in recent years. Top-line has been increasing regularly for the last 5 years and jumped from INR 882 Cr in FY 2013 to INR 1652 Cr for the period ended FY 2017.
Profits
Though the company has shown steady growth in revenue, the company has also registered growth in profits in these 5 years. Starting from INR 19 Cr of profits in FY2013, the company’s earnings improved to INR 28 Cr for the period ended FY 2017.
CONCLUSION –
Considering company’s valuation, financial parameters, and the sector potential in which it is operating, FinBlab recommends SUBSCRIBE ratings on Amber Enterprises IPO.
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