About United Heat Transfer Limited

United Heat Transfer is engaged in the manufacture of a range of shell and tube heat exchangers, air cooled heat exchangers, pressure vessels and process flow skids equipment’s which are used as critical equipment’s for petrol and diesel engines, railway engines, maritime engines, cruse and cargo ships, ferries, pleasure boats, marine diesels, mining trucks, megayachts, heavy engines, fishing boats, heavy trucks, freighters, trawlers, heavy haulages, power gen sets, super tankers, off highway engines etc. since 1995.

The company extends its expertise with the growing national and multinational OEM industry for Heat Exchangers, Moisture Separators Pressure Vessels and Process Flow Skids. They manufacture heat transfer equipment’s as per the TEMA (Tubular Exchanger Manufacturers Association) standards, ASME Section VIII Div. 1, Div. 2, (unfired pressure vessels), API 660, 661, NES standards.

As of July 31, 2024, the total number of employees of the company stand at 105. The Bankers of the United Heat Transfer Limited are HDFC BANK LIMITED, and SARASWAT CO-OPERATIVE BANK LIMITED.

ENGINEERING INDUSTRY IN INDIA
India’s Capital Goods manufacturing industry serves as a strong base for its engagement across sectors such as Engineering, Construction, Infrastructure and Consumer goods, amongst others. 

The engineering sector is the largest of the industrial sectors in India. It accounts for 27% of the total factories in the industrial sector and represents 63% of the overall foreign collaborations. Demand for engineering sector services is being driven by capacity expansion in industries like infrastructure, electricity, mining, oil and gas, refinery, steel, automobiles, and consumer durables. India has a competitive advantage in terms of manufacturing costs, market knowledge, technology, and innovation in various engineering sub-sectors. India’s engineering sector has witnessed a remarkable growth over the last few years, driven by increased investment in infrastructure and industrial production. The engineering sector, being closely associated with the manufacturing and infrastructure sectors, is of huge strategic importance to India’s economy. 

The development of the engineering sector of the economy is also significantly aided by the policies and initiatives of the Indian government. The engineering industry has been de-licensed and allows 100% foreign direct investment (FDI).

Additionally, it has grown to be the biggest contributor to the nation's overall merchandise exports, India became a permanent member of the Washington Accord (WA) in June 2014. it is now a part of an exclusive group of 17 countries who are permanent signatories of the WA, an elite international agreement on engineering studies and mobility of engineers.

Capital Goods sector contributes to 12% of India’s manufacturing output and 1.8% to GDP. Market valuation of the capital goods industry was US$ 43.2 billion in FY22. Imports of Electrical Machinery in India increased to US$ 11.38 billion in FY23. The Indian electrical equipment industry comprises of two broad segments, Generation equipment (boilers, turbines, generators) and Transmission & Distribution (T&D) and allied equipment like transformers, cables, transmission lines, etc. The sector contributes about 8% to the manufacturing sector in terms of value, and 1.5% to overall GDP. Incentives for capacity addition in power generation will further increase the demand for electrical machinery. 

The electrical equipment market share in India is expected to increase from US$ 52.98 billion in 2022 to US$ 125 billion by 2027, implying a robust CAGR of 11.68%. The domestic electrical equipment market is expected to grow at an annual rate of 12% to reach US$ 72 billion by 2025. In FY23, India’s heavy electrical equipment production stood at Rs. 2,44,300 crore (US$ 29.38 billion). The electrical machinery segment grew nearly 13% with shipments jumping to US$ 10.19 billion in the April-December 2023 from US$ 9.06 billion in the year-ago period. 

The Indian textile machinery industry was expected to touch the US$ 6 billion mark by 2022. India’s textile machinery exports declined by 5.09% to US$ 1003.55 million in 2023 compared to the previous year. The market size of Plastic machinery sector stood at US$ 0.5 billion. Indian Process Plant and Machinery (PPM) industry has estimated capacity of US$ 6.00 Billion per annum earthmoving equipment sales grew by 23% YoY in Q2 FY 2024, as the total equipment numbers sold increased to 22,334.The foundry industry has a turnover of approx. US$ 20 billion with exports of approx. US$ 3.54 billion. There are 750–800 domestic Medical Devices manufacturers in India, with an average investment of US$ 2.3–2.7 million and an average turnover of US$ 6.2-6.9 million. 

The Indian industrial fasteners market was valued at US$ 9,064 million in 2022 and is projected to reach US$ 17,868 million by 2030, registering a CAGR of 7.9% during the forecast period (2023-2030).India steam boiler systems market size is expected to reach nearly US$ 22.56 billion by 2027 with the CAGR of 4.63% during the forecast period. The India generator sets market is expected to grow at a CAGR of more than 5% over the period of 2020-2025. India switchgear market size was estimated at US$ 9.75 million in 2022 and is expected to grow at CAGR of 7.12% reaching a value of US$ 18.23 million by 2029. 

India’s automotive industry is worth more than US$ 222 billion, contributes 8% of the country’s total export, accounts for 7.1% of India's GDP and is set to become the 3rd largest in the world by 2030. Indian auto components industry, which accounts for 2.3% of India’s GDP currently, is set to become the 3rd largest globally by 2025. According to the Automotive Component Manufacturers Association of India, the auto-components industry of India is expected to grow by 10-15% in FY24, which would be driven by both domestic and export market demand. The Indian agricultural equipment market has reached a value US$ 10.25 billion in 2023 and is anticipated to grow at a CAGR of 5.24% through 2029. The Indian machine tool market size reached US$ 1.5 billion in 2023 and is expected to reach US$ 3.2 billion by 2032, exhibiting a growth rate (CAGR) of 8.2% during 2024-32. 

The Indian automated material handling (AMH) market was valued at US$ 1,353.8 million in 2020 and is expected to go up to US$ 2,739.34 million by 2026 at a CAGR of 12.7%. In FY23, India’s heavy electrical equipment production stood at Rs. 2,44,300 crore (US$ 29.38 billion). The domestic electrical equipment market is expected to grow at an annual rate of 12% to reach US$ 72 billion by 2025. The boiler market in India is expected to grow from US$ 704.6 million (INR 5,859 Crores) in FY19 to US$ 1.1 billion (INR 8,831 Crores) in FY30 with an expected CAGR of 3.8%.In FY23, the exports of engineering goods from India have been estimated to stand at US$ 107.04 billion. In the period of April 2023- January 2024, India exported engineering goods worth US$ 110.83 billion, a 2.91% increase YoY. India exports engineering goods mostly to the US and Europe.

HEAT EXCHANGER - INDUSTRY SCENARIO
Nominal GDP or GDP at Current Prices in the year 2023-24 is estimated at Rs. 293.90 lakh crores (US$ 3.52 trillion), against the First Revised Estimates (FRE) of GDP for the year 2022-23 of Rs. 269.50 lakh crores (US$ 3.23 trillion). 

According to the McKinsey Global Institute, India needs to boost its rate of employment growth and create 90 million non-farm jobs between 2023 and 2030 to increase productivity and economic growth. The net employment rate needs to grow by 1.5% per annum from 2023 to 2030 to achieve 8-8.5% GDP growth between 2023 and 2030. India's current account deficit (CAD) narrowed to 1.2 per cent of GDP in the October-December quarter of FY24. 

Exports fared remarkably well during the pandemic and aided recovery when all other growth engines were losing steam in terms of their contribution to GDP. Going forward, the contribution of merchandise exports may waver as several of India’s trade partners witness an economic slowdown. According to Mr. Piyush Goyal, Minister of Commerce and Industry, Consumer Affairs, Food, Public Distribution, and Textiles, Indian exports are expected to reach US$ 1 trillion by 2030.

In the second quarter of FY24, the growth momentum of the first quarter was sustained, and high-frequency indicators (HFIs) performed well in July and August of 2023. India's comparatively strong position in the external sector reflects the country's positive outlook for economic growth and rising employment rates. India ranked 5th in foreign direct investment inflows among the developed and developing nations listed for the first quarter of 2022. 

India's economic story during the first half of the current financial year highlighted the unwavering support the government gave to its capital expenditure, which, in 2023-24, stood 37.4% higher than the same period last year. In the budget of 2023-24, capital expenditure took lead by steeply increasing the capital expenditure outlay by 37.4 % in BE 2023-24 to Rs.10 lakh crore (US$ 120.12 billion) over Rs. 7.28 lakh crore (US$ 87.45 billion) in RE 2022-23. The ratio of revenue expenditure to capital outlay increased by 1.2% in the current year, signalling a clear change in favour of higher-quality spending. Stronger revenue generation because of improved tax compliance, increased profitability of the company, and increasing economic activity also contributed to rising capital spending levels. In February 2024, the Finance Ministry announced the total expenditure in Interim 2024-25 estimated at Rs. 47,65,768 crore (US$ 571.64 billion) of which total capital expenditure is Rs. 11,11,111 crore (US$ 133.27 billion). 

Since India’s resilient growth despite the global pandemic, India's exports climbed at the second-highest rate with a yearover-year (YoY) growth of 8.39% in merchandise exports and a 29.82% growth in service exports till April 2023. With a reduction in port congestion, supply networks are being restored. The CPI-C inflation reduction from June 2022 already reflects the impact. In September 2023 (Provisional), CPI-C inflation was 5.02%, down from 7.01% in June 2022. With a proactive set of administrative actions by the government, flexible monetary policy, and a softening of global commodity prices and supply-chain bottlenecks, inflationary pressures in India look to be on the decline overall.

DEFENSE MANUFACTURING INDUSTRY IN INDIA
India is one of the strongest military forces in the world and holds a place of strategic importance for the Indian government. The top three largest market segments of the Indian defence sector are military fixed wing, naval vessels and surface combatants, and missiles and missile defence systems. Military rotorcraft, submarines, artillery, tactical communications, electronic warfare, and military land vehicles are some of the other well-known segments. Some of the major defence manufacturing companies in India are Bharat Earth Movers Ltd. (BEML), Bharat Electronics Ltd. (BEL), and Hindustan Aeronautics Ltd. (HAL). 

The Indian defence manufacturing industry is a significant sector of the economy. The industry is likely to accelerate with rising concerns about national security. Demand for defence equipment in India has been growing due to the ongoing territorial disputes with Pakistan and China over the ownership of the Northern State of Kashmir and the North Eastern State of Arunachal Pradesh, respectively. Over the last five years, India has been ranked among the top importers of defence equipment to gain technological advantages over rival countries such as China and Pakistan. To modernize its armed forces and reduce dependency on external dependence for defence procurement, several initiatives have been taken by the government to encourage ‘Make in India’ activities via policy support initiatives.

India’s defence budget of US$ 74.7 billion ranked fourth highest globally in 2024.India has the world’s fourth largest defence expenditure, as of 2022, and has set a target of US$ 6.02 billion (Rs. 50,000 crore) worth of annual defence exports by 2028-29. 

In the Interim Budget 2024-25, US$ 2.9 billion (Rs. 23,855 crore) was allocated to DRDO, while a corpus of US$ 12.0 billion (Rs. 1 lakh crore) was earmarked for Deep Tech, offering long-term loans to tech-savvy companies to foster innovation in defence technologies within India. 

As per the Union Budget 2022-23, 25% of the defence R&D budget has been earmarked for private industry and startups which will pave the way for the innovation of new defence technologies in India. 

Till April 2023, a total of 606 industrial licences were issued to 369 companies operating in the defence sector. Defence exports rose 240% over five years in FY23, to US$ 1.9 billion (Rs. 15,918.16 crore). India now exports to over 85 countries due to collaborative efforts. 

Till October 2022, a total of 595 Industrial Licences have been issued to 366 companies operating in Defence Sector. Defence exports grew by 334% in the last five years; India now exports to over 75 countries due to collaborative efforts.

According to the Global Power Index, the Indian defence sector ranks fourth in terms of firepower with a score of 0.0979 (with 0.0 being the perfect score). The Indian government has set the defence production target at US$ 25 billion by 2025 (including US$ 5 billion from exports by 2025). India is one of the world’s biggest defence spenders with a total outlay of US$ 74.8 billion (Rs. 6.21 lakh crore), accounting for 13.04% of the total budget and indicating an increase of 4.72% over the Budget of 2023-24 and 18.35% over the allocation for 2022-23. India’s military spending of US$ 81.4 billion ranked fourth highest in the world in 2022. This was up by 6% from 2021. 

The value of defence production in the country crossed US$ 12 billion (Rs. 1 lakh crore) for the first time on the back of key reforms to spur growth in the sector that holds vast potential. The figure stood at US$ 13.1 billion (Rs.1,08,684 crore) in FY23 compared to US$ 11.4 billion (Rs. 94,845 crore) in FY22. The value of defence production in FY24 stood at US$ 5.6 billion (Rs. 46,175 crore) while the defence production by PSU’s stood at US$ 3.04 billion (Rs. 25,271 crore). 

India’s defence import value stood at US$ 463 million for FY20 and US$ 469.5 million in FY21. India targets to export military hardware worth US$ 5 billion (Rs. 35,000 crore) in the next five years. As of 2019, India ranked 19th in the list of top defense exporters in the world by exporting defense products to 42 countries. Defense exports in the country stood at US$ 1.9 billion (Rs. 15,918.16 crore) in FY23. 

Defense exports rose 240% over five years in FY23 and India now exports to over 85 countries due to collaborative efforts.

The Indian government is focussing on innovative solutions to empower the country’s defence and security via ‘Innovations for Defence Excellence (iDEX)’, which has provided a platform for start-ups to connect to the defence establishments and develop new technologies/products in the next five years (2021-2026). Working through partner incubators, iDEX has been able to attract the start-up community to participate in the Defence India Start-up Challenge (DISC) programme. 

In an effort to boost the defence sector and increase the infusion of FDI, the government in September 2020 revised the regulations and permitted FDI under the automatic route up to 74% and 100% through the government route in any area, where it is likely to provide access to contemporary technologies. The Defence Ministry has set a target of 70% selfreliance in weaponry by 2027, creating huge prospects for industry players. Green Channel Status Policy (GCS) has been introduced to promote and encourage private sector investments in defence production to promote the role of the private sector in defence production. Given the government's emphasis on easing restrictions on foreign investment in order to achieve India's goal of an "Atmanirbhar Bharat," the growth trajectory of the Indian defence sector remains strong.

India Diesel Generator Industry Segmentation
A diesel generator is a device that combines a diesel engine and an electric generator to generate electricity. This is an example of an engine generator. A diesel compression-ignition engine is typically built to run on diesel fuel, but specific models are also designed to run on other liquid fuels or natural gas. 

The India diesel generator market is segmented by power output, application, end user, and ratings. The market is segmented by power output into portable, inverter, industrial, and induction generators. The market is segmented by application into standby, prime power, continuous, and peak shaving. By end-user, the market is segmented into residential, commercial, and industrial. Ratings segment the market into 0-75 kVA, 75-375 kVA, and Above 375 kVA.

UNITED HEAT TRANSFER LIMITED COMPETITIVE STRENGTHS
1. Well Experienced Management Team
2. Integrated Manufacturing Facilities
3. Vendor Registrations
4. Long Standing Relation with Customers
5. Strategic Location of Unit

UNITED HEAT TRANSFER LIMITED STRATEGIES
1. Investing in Human Resources and Building a Professional Organization
2. Competitive pricing
3. Strong Customer Relationships
4. On Time Delivery
5. Design & Engineering Optimization

UNITED HEAT TRANSFER LIMITED RISK FACTORS & CONCERNS
1. The Company is dependent on few States i.e. Maharashtra, Gujarat, Tamilnadu, Karnataka and Andhra Pradesh.
2. The Company is dependent on Top 5 Countries i.e. France, Holland, Poland, Netherlands and USA.
3. One of the Promoter and Non-Executive Directors i.e. Ms. Durva Yogesh Patil has limited experience in the Heat Exchanger Industry in which the Company is operating.