About Shree Refrigerations Limited

Shree Refrigerations Unlisted Share - Company Report

1. Business Model

Shree Refrigerations Limited operates as a manufacturer and supplier of Heating, Ventilation, and Air Conditioning (HVAC) systems and refrigeration equipment. The company focuses on delivering customized cooling solutions, particularly for defense applications, contributing to India's 'Atmanirbhar Bharat' initiative by offering cost-effective alternatives to foreign competitors. Their business model emphasizes innovation, quality, and customer satisfaction, with a commitment to research and development to provide cutting-edge and efficient solutions.

2. Products

The company's product portfolio includes:

- Air and Water Cooled Condensing Units

- Chillers

- HVAC Systems

- Spray Dampening Systems

- Ancillary Equipment

These products cater to various sectors, including defense, marine, and commercial industries.

3. Clients

Shree Refrigerations serves a diverse clientele, notably within the defense sector, including the Indian Navy and defense Public Sector Undertakings (PSUs). Their products are also utilized by prominent media houses such as Hindustan Times and Eenadu, which have reported significant energy savings and improved print quality after implementing the company's 'DuoSpray' spray dampening system.

4. Management

The leadership team comprises:

- Ravalnath Gopinath Shende, Chairman & Managing Director

- Rajashri Ravalnath Shende, Executive Director

- Devashree Vishwesh Nampurkar, Executive Director

This experienced team guides the company's strategic direction and operations.

5. Competition

In the HVAC and refrigeration industry, Shree Refrigerations faces competition from both domestic and international manufacturers. Competitive risks include price competition, product innovation by competitors, and the introduction of substitute products. To mitigate these risks, the company emphasizes innovation, quality, and customer satisfaction, investing in research and development to offer efficient and cutting-edge solutions.

6. Risks

The company faces several risks, including:

- Modest Scale of Operations: The company's operations are tender-driven, primarily serving defense PSUs and the Indian Navy. Delays in tendering and awarding, along with challenges such as the pandemic, have led to lower revenue in recent years.

- Working Capital-Intensive Operations: High gross current assets, driven by large work-in-process inventory and lower revenue booking, result in significant working capital requirements.

- Average Financial Risk Profile: High gearing ratios and subdued debt protection metrics due to lower revenue and limited profits have adversely affected the company's financial metrics.

To address these risks, Shree Refrigerations is focusing on improving operational efficiency, prudent working capital management, and enhancing its financial risk profile.