KRN Heat Exchanger Targets 6x Capacity Expansion By May
The company will invest Rs 30 crore to Rs 40 crore over the next three years for line balancing.
KRN Heat Exchanger and Refrigeration, a provider of commercial air cooling solutions, aims to expand its capacity by six times by May 2025. The company is hopeful of achieving 80–85% of its capacity utilisation in the next three years.
In a conversation with NDTV Profit on March 17, the company’s Chairman and Managing Director, Santosh Kumar Yadav, said that implementation of the Graded Response Action Plan in Delhi has delayed the capacity expansion but the target will be reached by May.
“We said April, but because of the GRAP in NCR, we have been delayed by four weeks. So, we will come to the prototype in May for sampling. There is machine installation and some machines are under trial. The 6x capacity can be said that we will come to prototype in May. But, of course, full capacity takes time. Then our quality system will be set, the training of the mentor will go on, and we will invite the customer. Hopefully, we are assuming that we will achieve 25% in the coming financial year,” Yadav said.
“In the next three years, we are targeting to achieve 80% to 85% of the capacity utilisation we are applying, starting from April,” he said, responding to a question on the utilisation of the 6 times capacity expansion.
Further, the company will invest Rs 30 crore to Rs 40 crore over the next three years for line balancing. KRN Heat Exchanger is also open to opportunities for inorganic growth and is in talks with a foreign company.
In October 2024, the company’s wholly-owned subsidiary KRN HVAC Products signed a Rs 1,000 crore MoU with the Rajasthan government for a heat exchanger manufacturing project. Yadav confirmed that it is part of the company’s plans to increase its capacity six times.
“Our investment in this is around Rs 350 crore, so maybe in three years, if we do Rs 100 crore in this, we can do Rs 450 crore, so apart from that, we will invest the balance of Rs 400 or Rs 450 crore in the next five years,” he said.
Highlighting the segments the company caters to, he said, "The main requirement for us is data centre cooling. Secondly, we have seen demand for cold storage. We also meet the demand for commercial air-cooled chillers and heat pumps. Basically, we can say that the commercial side is a mix-up, but there is good growth in all segments."
Shares of KRN Heat Exchanger and Refrigeration was trading 0.54 lower as of 10:11 a.m., compared with 1.02% rise in the Nifty 50.
