Future plans for sustainable water management
Jash Engineering: Water, the elixir of life, is a precious resource facing increasing pressure. The water treatment and recycling industry plays an important role in ensuring availability and sustainability. Jash Engineering Ltd, a leader in this key sector, has been a key contributor for over 50 years.
Jash Engineering focuses on manufacturing comprehensive equipment for water and wastewater treatment plants. We serve diverse sectors such as power, steel and chemical industries, ensuring efficient use and minimizing environmental impact.
Their commitment extends beyond manufacturing. Jash provides single-stop solutions that include wraparound, design, casting, assembly and testing. This comprehensive approach ensures quality control and efficient project execution. Jash Engineering helps industries and communities manage their water resources responsibly, protecting this essential resource for future generations.
Let’s understand the company’s business model.
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Jash Engineering’s Industry Overview
The water and wastewater treatment equipment industry plays a critical role in addressing the global problem of water scarcity and ensuring access to clean water for domestic, industrial and agricultural purposes. Demand for water treatment solutions is increasing globally due to rapid industrialization, urbanization, and increasing awareness of health risks and environmental impacts.
Globally, the water and wastewater treatment equipment market is expected to grow at a compound annual growth rate (CAGR) of approximately 4.5% from 2023 to 2030, reaching an estimated value of USD 81.7 billion by 2030. Key factors driving this growth include: Government initiatives to improve sanitation standards, promote water treatment and conservation in developing countries, and to expand mining operations, particularly in South America.
The water management market in India reached INR 216.03 billion in 2022 and is expected to reach INR 518.15 billion in 2027, growing at a CAGR of 15.95% during the period. The municipal sector is expected to dominate the treatment equipment market through initiatives such as National Mission for Clean Ganga, Jal Jeevan Mission, and Community Drinking Water Scheme.
Additionally, increasing demand for clean water, river water management projects, irrigation and flood management for agriculture, and environmental regulations are creating significant opportunities for water treatment equipment manufacturers.
However, the industry faces fierce competition, economic conditions, supply chain Confusion, environmental problems. Players in the market are adopting strategies such as product launches, agreements, acquisitions, collaborations, joint ventures, and mergers to withstand global competition and remain profitable.
Jash Engineering Company Overview
Jash Engineering It was incorporated on 29 September 1973 as a private limited company with the name “Jash Engineering Industries Private Limited”. On September 21, 1994, it was converted to a stock company and its name was changed to Jash Engineering Ltd.
Jash Engineering Ltd is engaged in the business of manufacturing a wide range of products used in water and wastewater pumping stations and treatment plants, water pipes, storm water pumping stations and desalination. The company is headquartered in Indore, India and has five well-integrated, state-of-the-art manufacturing facilities (one in the US and four in India).
The company exports its products to over 45 countries and has a global presence with bases in India, the United States, Austria and Hong Kong. Our clients and consultants include NTPC, SAIL, BHEL, ADANI, TCS and SAPIENT.
As of May 1, 2024, the company had an order book worth Rs 816 crores, of which domestic India orders included Rs 265 crores and orders outside India amounted to Rs 551 crores.
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Finance at Jash Engineering
In FY23, Jash Engineering Limited recorded KRW 40.199 billion, up 9.36% from KRW 36.756 billion in FY22. Analyzing three years from FY 2021 to FY 2023, the company has an excellent Compound Annual Growth Rate (CAGR) of its revenue of 13.12%.
Additionally, the company in FY 23 increased its net profit margin by 60.65% to KRW 5.17 billion compared to KRW 3.218 billion in FY 22.
This increase in revenue and net income was driven by improved profitability at our U.S. subsidiary, Rodney Hunt, and the addition of Waterfront’s revenue streams through the acquisition. It also helped operating leverage as higher revenues were absorbed into existing overhead costs.
In FY23, Jash Limited maintained favorable financial metrics with return on equity (ROE) of 24.31% and return on equity (ROCE) of 22.16%.
Jash Engineering’s future plans
Jash Engineering Ltd plans to establish a new manufacturing facility in Glasgow, UK. They have also shipped machines from India to the UK, which are scheduled to be installed by May 31, 2024. This manufacturing facility expands our manufacturing capabilities and presence in the UK market.
The company plans to operate the new restaurant facility on campus under a rental model. Lease rent received is used for employee engagement activities. Through this, Jash Ltd aims to provide a space for employees to relax and welcome company guests.
Additionally, the company plans to build another new factory in a special economic zone (SEZ) by next year to strengthen its capabilities to meet increasing export orders.
Jashi Engineering entered the Vietnamese market and won $1 million in orders. We plan to aggressively enter more markets such as Thailand, Indonesia, Laos, and Cambodia by this year.
Jash Ltd also aims to develop and launch two to three new products every year. With this, they focus on expanding their line of inventive products for water reuse/recycling in India.
Continuing to expand its production capacity through new plants, the company aims to double its revenue from the current Rs 522 crores to Rs 1000 crores by FY 2028.
conclusion
Jash Engineering Ltd’s journey reflects its commitment to providing solutions to pressing global challenges. water shortage. We provide a stable supply of clean water to various fields, focusing on water treatment plant and desalination facility manufacturing equipment.
As the world struggles with water scarcity, Jash Engineering is poised to play a key role in the future. By continuing to innovate in technologies such as membrane filtration and strategically expand its market reach, we can become a major force in ensuring sustainable water management.
Their commitment to water treatment and recycling positions them as an important contributor to a more sustainable future. What would you say about their future growth? Please let us know in the comments below.
Written by Pavunkumar VM
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