JK Files & Engineering IPO papers filed with SEBI

June 16, 2022

Mumbai JK Files and Engineering, a part of the Raymond Group, is eyeing a development of Rs. 1500 crore in the coming many times on prospects of robust demand for perfection automotive factors. Having posted further than 50 growth in FY22 with a development of ₹ 812 crore, the bus- corridor arm now makes up nearly an eighth of the consolidated earnings at the Raymond NSE1.20Group. This was the alternate time of strong double- number growth, commodity the company believes will endure. ET learns that the company would be investing close to ₹ 150 crore in the coming times, inversely divided between bus and artificial tooling installations where it makes lines, drills, and hand tools.

The capex is likely to be funded substantially by internal supplements and the company wants to maintain a debt-free status, added people in the know. An dispatch transferred to the company remained unanswered.

JK Files has asset development of three times, rephrasing into incremental profit of around ₹ 450 crore. The company is soon set to hit the IPO route. According to the draft red herring prospectus filed with the request controller, the company has an installed capacity of8.2 million ring gears at the end of June 2021. The company plans to raise around ₹ 500- 600 crore that would primarily be used to bring down debt of its parent company Raymond.

The ring gear capacity is likely to increase 4- 5 million in the coming five times and on an average its consummation ranges between ₹ 150 and ₹ 250 per unit. Organic growth and new order wins for new passenger auto programmes are likely to keep application of the ring gear installations above 80 and returns of capital employed( RoCE) will probably be stable despite new investments.

The share of the automotive division in the total profit grew nearly 500 base points to 39- 40 over the last five financial times thanks to new order triumphs and rising penetration of automatic variants taking flexiplates.

In the ring gear member, the company has a request share of 52- 56 in the passenger vehicle and 46- 50 in the marketable vehicle member in India.

JK Files & Engineering Ltd

JK Files & Engineering Limited, a subsidiary of Raymond Ltd, is engaged in the business of manufacturing, sale and distribution of precision engineered components for tools and hardware such as steel files and drills, and marketing, sale and distribution of hand tools, power tool accessories and power tool machines and through its’ subsidiary, Ring Plus Aqua Ltd. (RPAL), it is into manufacturing, sale and distribution of auto components and engineering products such as ring gears, flexplates and water pump bearings which are high precision components.

With customer centricity being at the core, our customer base comprises of business-to-business (“B2B”) as well as business-to-consumer (“B2C”) segments spread over 60 countries spanning across Asia-Pacific, Africa, Latin America, Europe and North America. Given our widespread reach, exports contribute to over 50% of our combined business.


Tools & Hardware Business

Our Tools & Hardware business enjoys leadership position as the world’s largest manufacturer of steel files with a dominant share of over 25% of global capacity in 2020, and a presence in over 55 countries. Being the market leader in the files segment in India, the Tools and Hardware business commands a market share of over 60% by sales volume in fiscal 2021.

With trusted relationships that are built over the past seven decades, the business has earned a repute as a manufacturer offering expansive and versatile range of custom made files and tools as per BS, FS, ISI and DIN standards or as specified by customers. Given the strong presence in the Asian, African and Latin American regions and itis the largest brand in the African market with a market share of over 50% by volume in steel files in 2020.

In addition, it is amongst the leading players in the drills segment in India.

JK Files & Engineering has five state of the art ISO 9001-2015 certified plants strategically located at Ratnagiri & Chiplun in Maharashtra, Pithampur in Madhya Pradesh and Vapi in Gujarat. All plants are equipped with in-house rolling mills that ensure premium quality as well as easy product availability with wide spread of SKU’s in the market. Our strong commitment to quality has helped us build an enviable reputation even in technologically advanced markets like Europe, USA and UK.

The Tools & Hardware business exports files and drills to Europe, Latin America, Africa, North America and Asia-Pacific under our own brand as well as white labelled products. Exports contribute to over 45% of our business.

The brand ‘JK’ extends its rich legacy of technological know-how and expertise in manufacturing files and drills to quality products in Hand tools and Power tools categories. With a product portfolio includes a wide variety of handheld electric powered and non-powered tools such as Marble Cutter, Angle grinder, Impact Drill, Electric Drill, Cut-Off Saw, Pliers, Wrenches, Hammers, Spanners, Screw Drivers, Iron Jack Planes, Hole Saw, Hand Hack Saw Blades, TCT Circular Saw, Sockets etc. It is the endeavour of the business to simplify laborious tasks carried out by professionals such as carpenters, masons, plumbers, electricians, metal fabricators and MRO industry with high degree of efficiency and superior quality. The Tools & Hardware business currently supplies 3200+ active SKU’s in Files, 1600+ SKU’s in Drills, 500+ SKU’s in Hand and power Tools accessories and 300+ SKU’s in Power Tool Machines.

Building resilience through a resilient supply chain ably supported by local warehouses aligned to strong dealer distributor model. Our pan-India distribution network consists of over 730 active distributors with a retail reach of over 150,000 outlets spanning over 600 towns in India.