Sterling Powergensys Ltd - Stock Valuation and Financial Performance

Sterling Strips Limited was incorporated on October 22, 1984 as a private limited company under the provisions of the Companies Act 1956, in India. The primary objective of setting up the company was to manufacture oil/gas fired industrial boilers. The key promoters of the company were S. Venkata Subramanian and Premchand Shah.

The company manufactured more than 400 industrial boilers and waste heat recovery boilers in technical collaboration with Siller & Jamart, Germany, covering a wide range of steam generation capacity and installed the same encompassing all the leading business houses in India. The company also had occasion to export its boilers/boiler components to Saudi Arabia, Dubai, Thailand and Nigeria. Thus the quality of the boilers manufactured by the company found wide acceptability.

To garner funds to expand it’s boiler manufacturing capacity, the company went in for a public issue of its shares in 1994, prior to which the company had obtained the status of a public limited company, on 19th October 1994, under provisions of the Companies Act 1956 in India. The company is listed on the Bombay Stock Exchange with the shares being widely held by the public.

The company has a fully equipped manufacturing facility at A/8-4, Maharashtra Industrial Development Corporation (MIDC), Murbad, which is located at a distance of 60 Kms.

The philosophy to obtain the status of a public limited company was based on running the company by professional management, who would function on a code of ethics.  This philosophy is ingrained and imbued in the entire workforce of the company. For healthy and steady growth, the management of the company was of the opinion that professionalism was essential.

With the onset of the boom in the capital goods industry and new industrial projects, leading to a situation where major manufacturing companies were required to outsource their requirements, the management of the company took a conscious decision to focus on two key areas viz :

i)  Execution of projects on EPC (Engineering, Procurement & Construction) basis

ii) In house API grade Spiral Pipe Manufacturing Activities

The company saw the vast opportunity of setting up of mini integrated steel plants, which involves engineering services, efficient procurement and system integration, which has always been the area of strength for the company. In this endeavor, it has the technology back-up of Mukand Ltd, a 50 year old company manufacturing alloy steels and having it’s own machine building division to manufacture in-house the equipment for their steel division. The efforts in this direction were rewarded and it was awarded a Greenfield project to set up a 100 Ton per day sponge iron manufacturing unit, in India, on EPC basis for an order value of $3 Million and the same has been executed by it to the entire satisfaction of the client. Based on the performance the same client awarded it to set up their 150 TPD mini steel plant for manufacture of construction bars at Doha, Qatar and the project will be completed by end of current financial year.

Business area of the company:

Sterling Strips Ltd. (SSL) is one of the leading engineering companies in India engaged in providing EPC/ Turnkey solutions in the areas of  power generation, mini integrated steel plants, spiral pipe mills , industrial boilers, pressure vessels , DRI plants, etc.

The company, headquartered at Mumbai, is owned the Sterling Strips Ltd group pioneer in India in the field of boiler ,pressure vessels, hot air generators, and steel plant equipments and material handling equipments.

The turnkey construction activity of the company is managed by the Projects division also based at Mumbai through separate division and its the responsibility for each activity ranging from concept to commissioning.

SSL also manufactures a range of equipment largely employed in the above activities, which are undertaken at the factory under the Manufacturing division of the company. The factory is based at MIDC Murbad , 65 kms from Mumbai where large equipments are manufactured.

SSL has technical collaborations with some of the worlds leading firms for each of their activities. Some of the associates include Sillar & Jamart - GMBH, Mukand Ltd- India, H&K - India, Industrial Manufacturers - India, Abtech Machineries – Philliphines.

Clientele:

• Bombay Dyeing
• Godrej
• GACL
• CEAT
• Omax
• Imperial Industrial Chemicals
• Indus Smelters
• Lloyd Steel
• Reliance Industries etc.

Awards/ Achievements

• The  Products division / Projects divisions at Mumbai are both under process of  ISO 9000 certification.
• The company is approved with IBR  for manufacturing of boiler, pressure vessels, economiser and other equipments as per the clients requirement.