About Shree Refrigerations Limited
BUSINESS OVERVIEW
Shree Refrigerations is engaged in the manufacturing of Chillers, Refrigeration and Air Conditioning Appliances, and other components in the Heating, Ventilation, and Air Conditioning (HVAC) industry. The company offers a wide range of advanced systems and equipment primarily for the domestic market, catering to industries such as Automotive, Marine, Print Media, Chemical, Pharmaceutical, and General Engineering.
The product portfolio includes Chillers, Test Equipment, Marine HVAC & R Systems, and Printing Chillers. The company also provides value-added fabrication services, delivering customized engineering solutions.
In the automotive sector, the products ensure optimal temperature control in various systems. In the marine domain, solutions support crew comfort, operational efficiency, and the temperature regulation of electronic warfare systems. In print media, chemical, and pharmaceutical industries, systems are used to maintain precise environmental conditions essential for product quality and safety.
Shree Refrigerations holds approved supplier registrations from various professional directorates of the Indian Navy, including the Directorate of Electrical Engineering and is backed by the Directorate of Quality Assurance – Warship Projects, enabling eligibility for government defense contracts.
The manufacturing facility is located in Karad, District Satara, Maharashtra. As on May 31, 2025, the company had 129 permanent employees, approx. 165 contractual employees. The Bankers to the company are State Bank of India and Yes Bank Limited.
INDUSTRY ANALYSIS
Industry Analysis: India HVAC, Marine HVAC, Shipping & Fabrication Sectors
1. Indian HVAC Sector Overview
India’s Heating, Ventilation, and Air Conditioning (HVAC) sector is undergoing rapid expansion, propelled by fast-paced urbanization, rising disposable incomes, and evolving climate conditions. Government-backed initiatives such as ‘Make in India’, ‘Atmanirbhar Bharat’, and Production Linked Incentive (PLI) schemes have further catalyzed the adoption of energy-efficient HVAC systems.
Market Size & Growth
The Indian HVAC market was valued at USD 9.1 billion in 2023 and is expected to grow at a CAGR of 14.5% between 2025 and 2029. By 2028, the overall HVAC and smart building solutions market in India is projected to reach Rs 1,78,000 crore (approx. USD 21.5 billion).
Segment-Wise Analysis
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Air Conditioning Equipment: This segment leads the market due to India’s predominantly hot and humid climate. Key products include split and window ACs, VRF systems, and chillers. The shift toward inverter-based, energy-efficient systems is driving demand. Revenue from air conditioning alone was USD 953.9 million in 2023, and is projected to rise to USD 4.34 billion by 2032.
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Ventilation Equipment: Products such as air handling units (AHUs), exhaust/supply fans, and energy recovery ventilators (ERVs/HRVs) are gaining traction, particularly in commercial and industrial buildings, driven by increasing awareness of indoor air quality and updated building norms.
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Heating Equipment: Although a smaller segment, it plays a vital role in colder regions and select industrial applications. Demand for products like heat pumps, furnaces, and boilers is supported by seasonal needs and growth in the hospitality and industrial sectors. Energy-efficient heat pumps are gaining popularity due to their dual heating-cooling capabilities.
The sector is also transitioning toward integrated and smart HVAC solutions, incorporating automation and IoT for enhanced energy efficiency and building management.
2. Indian Marine HVAC Market
Market Overview
The Indian marine HVAC segment is expanding in parallel with the country’s growing maritime activities and expansive coastline. As of 2023, the marine HVAC market was valued at USD 862.77 million, with a projected CAGR of 3.45% through 2030, expected to reach nearly USD 1.09 billion.
Growth Drivers
India ranks as the fastest-growing market in the Asia-Pacific region for marine HVAC, supported by increased shipbuilding, naval modernization, and offshore activities. Technological innovation and the push for energy-efficient marine vessels are also key contributors.
3. Indian Shipping Industry
Strategic Importance
Maritime transport handles approximately 95% of India’s trade by volume and 70% by value, making it central to the country’s commerce. With 13 major ports and over 200 non-major ports, India is the sixteenth-largest maritime nation, with a 7,517 km coastline.
Infrastructure Development
Key government initiatives:
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Sagarmala Project: Aims to enhance port infrastructure and connectivity, with six new mega ports planned.
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100% FDI under the automatic route in port development and maintenance.
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10-year tax holiday for entities developing and operating ports and inland waterways.
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National Maritime Development Program: A US$ 11.8 billion outlay to bolster port modernization and capacity.
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Major Ports Authorities Bill 2025: Grants increased autonomy to ports and streamlines governance.
Despite short-term headwinds like geopolitical conflicts and supply chain disruptions, the long-term outlook is strong due to sustainability initiatives, increased private sector participation, and modernization efforts.
4. Indian Fabrication Industry
Industry Structure
The Indian metal fabrication industry is fragmented, with a strong presence of small and medium enterprises (SMEs) as well as large EPC (Engineering, Procurement, and Construction) firms. The industry is witnessing a surge in pre-engineered buildings and customized fabrication solutions, especially in structural steel and process equipment segments.
Key Drivers
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Rising Manufacturing Base: India is becoming a preferred destination for global manufacturers seeking cost-effective production hubs. The number of manufacturing facilities, including in electronics and batteries, has grown significantly since 2014.
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Government Support: Policies favoring industrialization and infrastructure development are boosting demand for fabricated metal products.
Market Size & Growth
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The Indian metal fabrication industry is growing at a CAGR of 6.38%.
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The steel fabrication market alone is valued at around INR 1,200 crore (USD 14.48 million) and expanding at 15–20% annually.
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India has over 5,000 steel fabricators, employing more than 100,000 individuals.
Challenges and Competition
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High fragmentation and intense competition, both domestic and international.
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Low entry barriers attract new players, while alternatives like aluminum and concrete challenge steel’s dominance.
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Success increasingly depends on technological investment, process efficiency, and innovative product offerings.
Major Players
Key players in the market include:
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Salasar Techno Engineering Ltd.
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Kirby Building Systems
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Zamil Industrial Investment Co.
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Pennar Group
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ISGEC Heavy Engineering Ltd.
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L&T Ltd, Godrej Process Equipment, TEMA India
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Diamond Group, Novatech Projects, and Karamtara Engineering
Conclusion
India’s HVAC, marine, shipping, and fabrication industries are undergoing dynamic transformation backed by robust demand, government initiatives, and technological upgrades. As infrastructure, manufacturing, and maritime sectors continue to evolve, these industries are expected to remain pivotal to India’s economic growth story.
BUSINESS STRENGTHS
1. Customization of Products
Shree Refrigerations specializes in delivering customized solutions tailored to client-specific requirements. The engineering team designs AC plants, HVAC systems, electrical control panels, and printing chillers, ensuring each product aligns precisely with project needs. This customization capability differentiates the company in the industry.
2. Quality Standards and Certifications
An ISO 9001:2015 certified organization, Shree Refrigerations also holds certifications from the Directorate of Quality Assurance (Warship Projects) and the Directorate of Electrical Engineering, Ministry of Defence (Navy). All products undergo 100% quality testing in a fully equipped QA lab, adhering to global standards and Customer Approved Testing Protocols. The company maintains strict compliance with statutory and voluntary norms.
3. Technology and Collaboration
Strategic technical collaborations, including those for HVAC design in warships and submarines, enhance the company’s technological capabilities. These partnerships strengthen its position in the defense HVAC segment, enabling the creation of scalable, credible business models.
4. Diverse Product Portfolio
The product range includes chillers, marine chillers, refrigeration plants, condensing units, test equipment, HVAC & R systems, and printing chillers. The company manufactures high-quality refrigeration systems for the Indian Navy and offers chillers for chemical and pharmaceutical industries, alongside value-added fabrication services for engineering sectors. This diversity supports stable revenue generation and operational resilience.
5. Leadership and Management
Founded and promoted by Mr. Ravalnath Gopinath Shende, the company benefits from his deep industry experience. A skilled management team with expertise in business development, operations, and engineering leads daily operations. The workforce includes qualified professionals and retired defense personnel, forming a strong foundation for sustainable growth.
BUSINESS STRATEGIES
1. Product Range Expansion
Plans are underway to leverage manufacturing and quality control capabilities to expand the product portfolio, combining new and existing offerings. This strategy aims to enhance capacity, cater to evolving customer requirements, and drive higher order volumes, growth, and profitability.
2. Supplier and Customer Relationships
The company focuses on maintaining strong, long-term relationships with both suppliers and customers. Timely delivery and consistent service have helped retain clients, while collaborative supplier partnerships support improved supply chain efficiency, cost management, and business scalability.
3. Talent Retention and Workforce Development
A skilled workforce remains central to operational success. The strategy emphasizes employee retention through better compensation, a safe and healthy work environment, and continuous training and skill development, ensuring a committed and productive team for sustained future growth.
BUSINESS RISK FACTORS & CONCERNS
1. Dependency on Government Contracts
A significant portion of revenue is derived from contracts with the Government of India (GoI) and its associated entities, particularly the Indian Navy and public sector undertakings. Any budget cuts, reprioritization of defence spending, contract delays, terminations, or policy shifts may have a material adverse impact on business operations.
2. Reliance on Marine Chillers Segment
A majority of revenue is generated from the manufacturing and supply of Marine Chillers, backed by approved supplier registrations from the Directorate of Electrical Engineering, Directorate of Naval Architecture, and the Directorate of Quality Assurance – Warship Projects. Heavy dependence on this segment poses a concentration risk; failure to attract or retain clients in this space may negatively impact business performance.
3. Geographical Revenue Concentration
Revenue is largely concentrated in three states for the financial years ending March 31, 2023, 2024, and 2025. Any loss of business, geopolitical changes, market fluctuations, or growing competition in these regions could significantly affect revenue and profitability. The inability to maintain or expand the business footprint across other regions may further intensify this risk.
Summary:
Shree Refrigerations faces key business risks from its dependence on government and defence contracts, reliance on the marine chillers segment, and geographical concentration of revenue. Any adverse developments in these areas may significantly affect the company’s financial performance and growth prospects.
