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United Heat Transfer Receives Rs. 20.3 Million Purchase Order from Ingersoll-Rand India
Team Finance Saathi
06/Jan/2025
What's covered under the article:
- United Heat Transfer secures a Rs. 20.3 million purchase order from Ingersoll-Rand India for parts manufacturing.
- The purchase order includes terms for designing, manufacturing, and supplying heat exchanger parts.
In an important development, United Heat Transfer Limited (formerly known as United Heat Transfer Private Limited) has received a purchase order from Ingersoll-Rand (India) Limited, amounting to approximately Rs. 20.3 million. The order is primarily for the manufacturing of parts, including the design, production, and supply of shell & tube heat exchangers, to be supplied at their domestic plant. This purchase order is in line with the company's long-term strategy to strengthen its foothold in the manufacturing sector and continue its growth in India.
This disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency in corporate reporting. As per SEBI guidelines, this move is aimed at keeping shareholders and the public informed about significant orders that impact the company's financials. The order was finalized with specific payment terms, where 90 days credit will be provided after receipt at GRIR (Goods Receipt/Invoice Receipt) at Ingersoll-Rand.
Order Details
The order encompasses the manufacturing of parts related to heat exchangers, a crucial component in many industrial applications. The manufacturing process will involve the designing, production, and supply of the parts, which are expected to contribute significantly to the company's revenue in the short term. This order falls under domestic manufacturing, ensuring that the products are sourced locally, aligning with the government's push for "Make in India" initiatives.
Financial and Execution Terms
The financial size of the order, excluding taxes, is valued at approximately Rs. 20.3 million. The execution timeline for the order is set to conclude by 15th April 2025. This gives the company a clear window for production and delivery, ensuring that it aligns with Ingersoll-Rand India's requirements.
The order terms specify that payment will be made 90 days after receipt at GRIR, a standard procedure followed by many companies to manage cash flow. This ensures that United Heat Transfer will receive timely payments, supporting their operational liquidity.
Domestic Focus and Related Party Information
This purchase order is a domestic order, which reflects the company's robust position in the local market and its ability to cater to major players like Ingersoll-Rand (India). Notably, the company confirms that there is no involvement of related party transactions in this order, ensuring that the transaction is conducted at arm's length and in compliance with industry standards.
The company's promoter group has no interest in Ingersoll-Rand, making this transaction purely a business-to-business deal, which should increase trust among shareholders and investors. The disclosure ensures that all details are shared in accordance with SEBI's listing requirements, maintaining transparency and compliance with the regulatory framework.
Strategic Impact
This purchase order holds significant strategic value for United Heat Transfer, not only due to its size but also because it highlights the company’s continued growth in the manufacturing sector. The partnership with a major player like Ingersoll-Rand further validates the company's capabilities and positions it as a key supplier in the heat exchanger and parts manufacturing industry.
The company's ability to execute this order successfully will strengthen its market presence and could pave the way for future contracts and orders in the industry. The success of this project will also demonstrate the company's commitment to quality and timely delivery, essential attributes that will enhance its reputation in the business world.
The company is also in the process of optimizing its manufacturing capabilities to handle orders of this size efficiently. As part of its ongoing business strategy, United Heat Transfer plans to leverage this order as a stepping stone for securing more contracts with domestic and international clients in the future.