Water industry analysis



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Jash engineering is a largest water control gate manufacturer it also makes waster water treatment equipments and hydropower related It is MNC companies because it also work with municipal corporation
he company has a policy of adding new products every year with a view to improve its product portfolio and maintain its leadership position in India. Last year the company brought few products to commercial production stage and will work on establishing these products in the Indian market in the current nancial year. The company also expects to start work on 2 more new products within this nancial year. Details of these developments are given hereunder-

Water industry analysis


the global water and wastewater treatment market size grew to USD 301.7 Billion in 2022, and is expected to reach USD 489.07 Billion by 2029, exhibiting a CAGR of 7.1% during the forecast period
the Indian market size for water and wastewater treatment is expected to register a CAGR of 8.50% from 2022 to 2029 The high prevalence of water-borne infections is caused by the fact that just one-third of India's wastewater is currently treated
The water and wastewater treatment equipment market is expected to display a CAGR of 5.1% between 2022 to 2030. This growth is largely driven by an increasing demand for clean water due to rapid industrialization and urbanization coupled with a fall in natural freshwater resources. After a supply chain shortage owing to the crisis in Europe and unprecedented lockdowns, the global market recovered efficiently

Risk
We are subject to foreign currency exchange rate fluctuations which could have a material impact on our results of operations and financial conditions


CSR
Company contributes in following activities: Eradicating hunger, poverty and malnutrition, promoting preventive health care & sanitation and making available safe drinking water. Promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly and the differently-abled and monetary contributions to academic institutions, Ensuring environmental sustainability and ecological balance.
Industry served – Human drinking cycle, storm water cycle, Human waste water cycle , renewable Energy generation Industrial usage
Focus area is Human water and waste water
India waste and drinking water industry is 2bn and it will grow by 5 bn by 2026
As our population is increasing day by day waste water business is also increasing
125million litres of water wasted daily

India produced 72,368 MLD (1 million litres per day), while the installed capacity of STP was 31,841 MLD (43.9 percent).


However, the actual capacity utilization of STPs is only 72.2% and as such only 13.5 % of the sewage is treated.

Of this installed capacity, development and operational capacity was 26,869 MLD (84 percent). Of the total operational capacity, 20,235 MLD (75%) was the capacity actually used.

In other words, of the total 72,368 MLD of wastewater generated daily, only 20,235 MLD is treated.
These account for 86% of total installed capacity in Madhya Pradesh, Haryana, Punjab, Tamil Nadu, and Rajasthan alone.

There are no or less sewage treatment facilities in Arunachal Pradesh, Andaman and Nicobar Islands, Lakshadweep, Manipur, Meghalaya and Nagaland


The states and UT’s, which use only 1% of wastewater, include Arunachal Pradesh, Bihar, Assam, Chhattisgarh, Jharkhand, Kerala, Lakshadweep, Manipur, Meghalaya, Mizoram and Nagaland, including Tripura.

The percentage of recycled wastewater is highest in Haryana (80%), followed by Pondicherry (55%), Delhi (50%), Chandigarh (35%), Tamil Nadu (25%), Madhya Pradesh (20%) and Andhra Pradesh (5%).

Namami gange
Govt iniative
National Infrastructure pipeline

Axel schutte took position in boards when jash joined hands with schutte group Germany

Pratik patel education BE Mechanical , MBA , Suresh kumar patel , BE Civil , Axel Schutte, BA Economics
Rodney hunt make jash a global export company
Working capital cycle is important for infrastructure company
They face loss in 2018 and 2019 because ssubsidiariy was making loss and it was Rodney hunt who was making loss

Durgaram Suresh patel got Rs. 40.64 lacs for the FY 2021-22 as remuneration


List of outside company directorship
Quantile Analytics Private Limited
2. Jash USA Inc

Rodney Hunt


With induction of 5 employees having significant experience in water control gates products from India into Rodney Hunt, USA and with addition of experienced manpower at all levels of organization and in key positions within this year, the company would emerge as a strong and competent force to reckon with from next year. With a competent team in place at Houston and Orange, the company is quite condent of continuing on this path of growth in future and reach the top position once again by achieving sales in excess of US$ 35 million in 5 years time

Loan
The Company availed loan against property facility from HDFC Bank amounting to INR 385.00 lakhs at rate of interest of 9.55 %. Repayment of term loan is to be done in 119 monthly installments of INR 5.02 lakhs with last installment falling due in year 2029-30. Outstanding book balance of term loan is INR 314.11 lakhs


CSR
n light of Section 135 of the Companies Act 2013, the Company has incurred INR 40.91 lakhs (31 March 2021: INR 29.36 lakhs) during the current year on Corporate Social Responsibility (CSR) towards health and education.

For cash & cash equivalents and other bank balances - Since the Company deals with only high-rated banks and financial institutions, credit risk in respect of cash and cash equivalents, other bank balances and bank deposits is evaluated as very low. - For loans - Credit risk for loan given to subsidiaries are evaluated on an individual basis by the management after considering the future cash flows expected to be derived. Credit risk for security deposits and loans is considered low because the Company is in possession of the underlying asset


The Company has two units located in Special Economic Zone (the “SEZ”), Unit I and Unit II respectively.

Future outlook


According to the 48th Annual Report of Jash Engineering Ltd. for the financial year 2021-2022, the company expects the upcoming financial year 2022-2023 to be a significant one for reclaiming its No. 1 position in the US market. They anticipate generating revenue exceeding USD 22 million with reasonable profitability.

The company aims to establish two consecutive years of profitability to instill confidence among clients and representatives, leading to improvements in revenue in the future. In the current financial year, Jash Engineering will have access to funding from local banks and bonding opportunities, which should enhance its ability to secure larger orders.


Jash Engineering plans major capital investments in its facilities in Indore and Chennai, with minor investments in the Orange manufacturing facility. They have already made most of the investments in their SEZ Unit 3 & 4 in Indore, primarily catering to export business. Additional investments will focus on improving quality and output.

A significant investment will be made in Unit 2 of Jash Engineering in Indore to construct a new manufacturing facility of approximately 30,000 square feet. The existing plant will primarily handle carbon steel fabricated products, while the new facility will accommodate stainless steel products manufacturing, assembly, and testing, as well as the production of Disc Filter machines and other new products. The construction is expected to start in October 2022 and be completed by December 2023, with an investment of approximately Rs. 9 crores.

Jash Engineering also plans to build a new plant in Shivpad, Chennai, on a 2-acre plot. The first phase will involve constructing a facility of approximately 25,000 square feet for manufacturing fabricated products, along with office and canteen spaces. Work on the first phase is projected to commence by December 2022 and be completed by December 2023. The total investment for land and the entire plant is estimated to be around Rs. 12 crores.

Regarding product development, Jash Engineering has tied up with Invent Germany to manufacture Disc Filters in India. The company aims to reduce the import content on these machines to less than 5% by March 2023. They expect Disc Filters and Air Vessels to contribute significantly to their revenue in the current financial year and subsequent years.

Jash Engineering is also focusing on developing Agitators and Mixers in collaboration with Invent Germany, as well as partnering with a European company to produce Vortex Grit Removing Systems and Screen-Grit Combo Units in India.



Overall, Jash Engineering is confident in its growth trajectory and expects to reach the top position again, aiming for sales exceeding USD 35 million within the next five years. The company is strategically investing in new facilities, expanding its product portfolio, and leveraging partnerships to strengthen its market presence
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