About Envirotech Systems Limited

Envirotech Systems Limited is a leading acoustic products manufacturing organization specializing in noise measurement and control for industrial and commercial applications. Incorporated in 2007, they have expanded their capabilities to include innovative acoustical product design and manufacturing. With over 98 employees and a network of technical experts, they offer cost-effective solutions for various acoustical challenges in industrial, commercial, architectural, and environmental markets. Their comprehensive services encompass research, cost-benefit analysis, and engineering solutions to provide us with the most efficient noise abatement solutions.

Manufacturing Facility & Infrastructure 
- They have state-of-the-art manufacturing facilities capable of working with carbon steel, stainless steel, and alloy steel, using materials like rock wool, multiple sound dampening & absorbing materials. 
- Their facilities include welding, painting, and fabrication areas for large structures and equipment. 
- Their skilled workforce and qualified welders ensure sustained production. 
- They have technical personnel proficient in various NDT levels.

Envirotech Systems Limited offers its services across India, catering to a diverse range of industrial and commercial clients. While they also export some products, the revenue generated from these exports is not a significant portion of their overall revenue. While they provide their services PAN India, their focus remains on delivering bespoke solutions that align with individual customer requirements. The Company have a track record of over various successful projects in industries such as Oil & Gas, Manufacturing, Power Generation, Cement & Steel, Automobile, and Construction, ESL continues to expand both domestically and internationally. 
At Envirotech Systems Limited, we deliver professional and concise solutions for noise control needs.

INDIAN ACOUSTIC MARKET
India’s Acoustics market i.e. NVH (Noise, Vibration, and Harshness) Testing market has valued at USD 141 million in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 7.33% through 2029. The Noise, Vibration, and Harshness (NVH) Testing market in India have been experiencing significant growth and transformation in recent years, reflecting the country's dynamic industrial landscape and increasing focus on product quality and performance. NVH testing is a critical aspect of product development and quality assurance across various industries, and India is no exception to this global trend. This burgeoning market is shaped by a multitude of factors, including the rapid expansion of the automotive, aerospace, consumer electronics, and construction sectors, all of which rely heavily on NVH testing to ensure their products meet stringent noise and vibration standards.

The Indian acoustic insulation industry has witnessed significant growth in recent years due to the increasing focus on noise control, improved building standards, and enhanced awareness of the detrimental effects of noise pollution.

India's automotive industry, one of the largest in the world, has witnessed a surge in NVH testing activities. As Indian consumers become increasingly discerning and prioritize vehicle comfort and noise reduction, automakers and suppliers are investing significantly in NVH testing to meet these expectations. This is particularly relevant in the context of India's diverse and challenging road conditions, where NVH testing plays a pivotal role in enhancing the driving experience. Furthermore, as the country transitions towards cleaner and more sustainable transportation solutions, such as electric vehicles (EVs), NVH testing is indispensable in optimizing the acoustic performance of these vehicles, ensuring they are not only eco-friendly but also comfortable and quiet.

The auto sector is one of the key pillars of the growing economy in India, contributing about 7.3 percent to our GDP. The Indian automobile industry posted a satisfactory performance, with the domestic industry growing by 12.5 per cent during the last financial year (FY24) to 2,38,53,463 units compared with 2,12,04,846 in the previous year. In terms of future outlook, the industry expects to remain optimistic as the macroeconomic outlook remains positive. Coupled with good monsoon outlook, the industry is expecting continued growth this year as well. Given the positive outlook for automotive industry, acoustics industry could also get boost as both industries perform parallelly.

The aerospace industry in India has also embraced NVH testing as a critical component of research and development efforts. With the growth of the aviation sector and the government's emphasis on indigenous aerospace manufacturing, there is a heightened focus on meeting global standards for aircraft noise reduction and passenger comfort. NVH testing ensures that aircraft and their components comply with stringent noise and vibration criteria, contributing to safer and more comfortable air travel experiences. This sector's increasing reliance on NVH testing is indicative of India's ambition to establish itself as a global player in aerospace manufacturing and technology. The consumer electronics sector in India has been experiencing a seismic shift, driven by the rapid digitalization, and changing consumer preferences. As consumers demand quieter and more efficient electronic devices, manufacturers are integrating NVH testing into their product development processes. This is particularly crucial in the realm of smartphones, laptops, and home appliances, where noise and vibration levels can significantly impact user satisfaction and product performance. With the proliferation of Internet of Things (IoT) devices and the expansion of the smart home ecosystem, NVH testing has become indispensable to ensure a seamless and quiet user experience.

India is expected to overtake China and the United States as the world's third-largest air passenger market in the next ten years, by 2030, according to the International Air Transport Association (IATA). Further, the rising demand in the sector has pushed the number of airplanes operating in the sector. The number of airplanes is expected to reach 1,100 planes by 2027. 

During April-October 2023, the domestic passenger traffic stood at 175.42 million, registering a 19.4% increase, and international passenger traffic stood at 38.55 million, a 26.2% increase, as compared to the same period the previous year. 

In FY23, airports in India pegged the domestic passenger traffic to reach 270.34 million, a 62.1% YoY increase, and international passenger traffic to reach 56.9 million, a 157% YoY increase, as compared to FY22.

Between FY16 and FY23, freight traffic increased at a CAGR of 2.20% from 2.70 MMT to 3.15 MMT. Freight traffic stood at 3.15 million metric tonnes in FY23. Freight traffic in airports in India has the potential to reach 17 MT by FY40. In FY22, the number of aircraft movements stood at 1,757,112, and aircraft movements reached 2.5 million in FY23. To cater to the rising air traffic, the Government of India has been working towards increasing the number of airports. As of 2023, India has 148 operational airports. India has envisaged increasing the number of operational airports to 220 by 2025. Acoustics also play a major role in aerospace industry and given the demand in aerospace industry, acoustics demand could be witnessed parallelly.

Moreover, India's construction and infrastructure development sector are on an upward trajectory, driven by urbanization and ambitious government initiatives like the development of smart cities. In this context, NVH testing plays a crucial role in addressing noise and vibration concerns associated with buildings, bridges, and other infrastructure projects. Ensuring structural integrity and occupant comfort is paramount, and NVH testing helps in achieving these goals in the context of densely populated urban environments. The construction industry's increasing adoption of NVH testing reflects its commitment to delivering high-quality and sustainable infrastructure solutions. The growth of the NVH testing market in India is further catalysed by the country's emergence as a global manufacturing and technology hub. International companies specializing in NVH testing solutions view India as a strategic market and are expanding their presence to tap into the country's burgeoning demand. This not only contributes to the growth of the NVH testing market but also enhances India's capabilities in research and development, manufacturing, and service delivery in this field.

India will spend nearly Rs 143 lakh crore on infrastructure in seven fiscals through 2030, more than twice the ~Rs 67 lakh crore spent in the previous seven starting fiscal 2017.

As the NVH testing market in India continues to expand, there are several key trends and challenges to consider. Firstly, the adoption of advanced technologies such as simulation software, virtual testing, and artificial intelligencedriven analytics is on the rise, allowing for more efficient and cost-effective NVH testing processes. 

Additionally, the need for NVH testing in electric and hybrid vehicles is expected to increase significantly as India advances its electrification efforts. However, challenges related to skill shortages in NVH testing expertise and the high cost of specialized equipment remain. Bridging the skill gap and making NVH testing services more accessible to small and medium-sized enterprises will be crucial for sustained market growth. 

In conclusion, the India NVH testing market is undergoing a remarkable transformation driven by the automotive, aerospace, consumer electronics, and construction industries' growing emphasis on product quality, performance, and user experience. The adoption of NVH testing across these sectors reflects India's commitment to global standards and its aspiration to be a leader in manufacturing and technology. With the right investments in technology, skills, and infrastructure, the NVH testing market in India is poised for continued expansion and innovation, making it an integral part of the country's industrial landscape.

ENVIROTECH SYSTEMS LIMITED COMPETITIVE STRENGTHS
1. Experienced Promote and Management Team
2. Integrated manufacturing facility
3. Well-developed distribution network
4. Quality Assurance and Control

ENVIROTECH SYSTEMS LIMITED STRATEGIES
1. Leveraging their Market skills and Relationships
2. Improving functional efficiencies
3. Enhance customer base and to establish long-term relationships
4. To build-up a professional organization
5. Expand geographical reach
6. Strengthening up their business through effective branding, promotional and digital activities

ENVIROTECH SYSTEMS LIMITED RISK FACTORS & CONCERNS
1. One of the members of the Promoter group has defaulted on a personal loan with outstanding of Rs 113,225 for which proceedings in DRT has been initiated against him.
2. The Land being purchased by M/s Envirotech Systems Limited from M/s Oriental Trimex Limited has been pledged by Oriental Trimex Limited as collateral to secure a loan of approximately ₹37.25 crore(against multiple locations properties located at Chennai, Kolkata, Greater Noida (Manufacturing Plants) & New Delhi (Residential) from Edelweiss Bank.
3. Substantial portion of their revenues has been dependent upon their few customers.
4. Their future fund requirements, in the form of further issue of capital or securities and/or loans taken by them, may be prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.
5. They are highly dependent on their suppliers for uninterrupted procurement and sale of their traded goods.