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JASH ENGINEERING LIMITED — Investor Presentation 2023
Aug 14, 2023
59194_rns_2023-08-14_36b403a6-f564-4023-9c43-f542d9411e7f.pdf
Investor Presentation
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JASH ENGINEERING LTD.
Contributing to a sustainable environment…….Worldwide !
Investor Presentation
Q1FY24, August 2023
Shivpad Engineers Pvt Ltd
Mahr Maschinenbau
Disclaimer
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This presentation and the accompanying slides (the “Presentation”), which have been prepared by Jash Engineering Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.
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1 Company Overview
2 Product Overview
3 Financial Overview
4 Business Outlook
Head Office at Unit 1 in Indore
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Company Overview
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Jash at-a-glance
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An ISO-9001:2015 / ISO-14001:2015 / OHSAS ISO 45000:2018 certified company dedicated to offering varied products for use in Water and Wastewater Pumping Stations and Treatment Plants, Storm Water Pumping Stations, Water Transmission Lines, Desalination, Power, Steel, Cement, Paper & Pulp, Petrochemicals, Chemicals, Fertilizers and other process plants.
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Headquartered in Indore – India, Jash has five well-integrated state-of-art manufacturing facilities, four in India and one in the USA.
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Global presence with bases in India / USA / Austria / Hong Kong to serve our clients and help achieve the common goal of
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creating a sustainable environment worldwide for all time to come.
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Incorporation
1973
of Company
Countries
5 [Manufacturing units] 45+
Global exports
Years of cumulative
~ Employees
950 350+
experience
Consolidated
Approved by Major
415 Cr. Sales 2022-23
Municipal Authorities in India and Abroad
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Evolution of the company
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Biggest Water Control gates company of India Established UNIT-3 of
Expanded Screen manufacturing Technical collaboration with
& converted into public limited company. 50,000 Sqft. At SEZ
facility and became largest Weco Armaturen, Germany to
Schuette, Germany for Bulk solids valvesTechnical & Financial collaboration with manufacturer of fine screen in India offer its range of Valves in Pithampur for Valves & Gates
Asian market
Acquisition of Sureseal
Formation of First company to introduce fine screen in India in Technical New facility to manufacture bulk to add Water Hammer
Jash Engineering Pvt Ltd collaboration with Hollung, Sweden solids handling valves control valve range
1973 1996 2000 2005 2006 2008 2009 2010
2023 20192019 2018 2017 2016 2014 2012 2011
Joint Venture with Invent ,
Germany to manufacture their Established plant of 60,000 sqft Acquisition of Established UNIT-2 of 150,000 Sqft. For
range of aeration and mixing at Orange Massachusetts, USA Rodney Hunt Brand Fabricated products.
equipment. for Fabricated products. in USA Technical collaboration with Mahr
Maschinenbau , Austria for various Screens
Company listed on National
Established UNIT-4 of 50,000 Sqft
at SEZ for Fabricated products. Stock Exchange (NSE) Acquisition of Technical collaboration with Rehart,
Mahr Maschinenbau, Austria
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Established UNIT-4 of 50,000 Sqft at SEZ for Fabricated products. Technical Collaboration with Invent, Germany for Disc Filters
Technical collaboration with Rehart, Germany for Archimedes screw pumps & hydro power generation. Acquisition of Shivpad to add Process Equipment range
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Evolution Through Acquisition
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To add world renowned brand and get access into north American market of water control gates. To get access to top representatives in states so that they can help in selling screens & knife gate valves.
Rodney Hunt Inc., USA (FY-23 revenue ₹ 163.9 Cr.) (Acquired at US$ 4 million)
Mahr Maschinenbau GmbH,AUSTRIA (FY-23 revenue of Mahr products ₹ 28.7 Cr.) (Acquired at Euro 2 million.)
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To add world renowned Screening technology and brand so that these could be leveraged in export market and help push gates and screens as a package
Shivpad Engineers Pvt. Ltd, INDIA (FY-23 revenue of Process Equip ₹ 27.2 Cr.) (Acquired at ₹ 6 Cr.)
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To add treatment process equipment and increase the package size of products offered in a particular project.
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Sureseal, INDIA
To add niche products of water hammer control in the water conveyance cycle where company had no presence in India.
(FY-23 revenue of Sureseal products ₹ 13.1 Cr.) (Acquired at ₹ 1Cr.)
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State of Art Facilities & Turnover Capability
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Total Turnover Potential from existing facility
₹ 600+ Cr
UNIT-1 CAST PRODUCTS PLANT
UNIT-2 FABRICATED PRODUCTS PLANT
UNIT-3 SEZ PLANT
Built Up Area: 125,000 Sq. ft. Turnover Capability : ₹ 75 Crore
Built Up Area: 185,000 Sq. ft. Turnover Capability : ₹ 250 Crore
Built Up Area: 75,000 Sq. ft. Turnover Capability : ₹ 100 Crore
UNIT-4 Rodney Hunt Plant
UNIT-1 CAST PRODUCTS PLANTRodney Hunt lant, Orange, MA USA
Built Up Area: 50,000 Sq. ft.. Turnover Capability : ₹ 100 Crore
Built Up Area: 60,000 Sq. ft.
Turnover Capability : USD 10 Million (₹ 80 Crore)
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Plant Capabilities
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Bend & shear Shot blasting of carbon
Physical & Chemical stainless steel up to steel up to 5000 x 4000 x
testing of material 14 mm thick 20000mm
Machine job with
maximum size of upto Bath pickle
10,000 x 4000 x stainless steel jobs Flight Forming
Positive Material 1000 mm on CNC up to 6000 x 2000 x Machine for 5000
Identification Machines 2000mm size mm diameter
Casting weighing up Fabricating Laser Cutting
to 20,000 kgs. capacity for jobs Machine for plates
up to 50 tonnes upto 16 mm thick
weight
Water jet Cutting of stainless Hydro-test sluice gates Flight welding machine
steel plates upto up to 5000 x 3500mm size for 4500 mm diameter x
100 mm thick and valves up to 3000mm 24,000 mm length
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Products Overview
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Product at a Glance
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Coarse Screening Fine Screening
Water intake Systems Heavy Fabricated Gates
Equipment Equipment
Penstocks / Open Channel Bulk Head Slide Roller Gates Trash Rack Jash MMR Screenmat Step Rotoclean Rotary
Sluice Gates Gates Gates Screen Screen Drum Screen
Downward Opening Flap Gates Butterfly Gates Crest Gates “JMR” Multi-rake Jash Back Rake Rotobrush Rotary Mahr Perscalator
Weir Gates Screen Screen Screen Screen
Stop Logs Radial / Tainter Bonneted Gates Suspended Trash Travelling Band
Gates Rack Screen
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Product at a Glance
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Screening Conveying Heavy Fabricated Gates Knife Gate Valves Bulk Solid Handling
Equipment Valve
Belt Conveyor Screw Conveyor Bulk Head Slide Roller Gates Trash Rack “MONO” Series Slide Gate Valve Swing Gate Valve
Gates Knife Gate Valve – Version ZFB – Version KU
Special Purpose Valves
Screw Conveyor Jet Breaker Butterfly Gates Crest Gates Double Flap Valve Fabricated Slide
with wash Washer – Version DFG Gate Valve-VEG
compactor Compactor
Zero Velocity Valve Air Vessel
Radial / Tainter Bonneted Gates Slide Gate Valve-
Gates Air Cushion Valve Energy Dissipating ZFS
Valve
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Product at a Glance
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Process Equipment Heavy Fabricated Gates
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Detritor Slow speed floating aerator
Clarifier
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Screw Pumps
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Hydro Power Equipment Hydropower Screw Generator
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Heavy Fabricated Gates
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Archimedean Screw Pump
Clarifloculator
Slow speed fixed aerator
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Filtering Equipment
iFILT® Diamond Disc Filter
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Application Of Products
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Storm water pumping
Water intake systems
stations
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Paper & pulp plants
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Power plants
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Water & waste water
treatment plants
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Petrochemical plants
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Irrigation systems
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Steel plants
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Product Offerings With Revenue Contribution (Q1FY24)
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Water Control Gates 60% 57% Revenue Contribution
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Valves
23%
8%
Revenue Contribution
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Screening Equipment
13%
27%
Revenue Contribution
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Hydropower & Pumping , Process Equipment and others 9% 7% Revenue Contribution
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Making The World Our Market
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From predominant sales in single geography of India in early nineties, the company is today present in multiple (over 45 countries) regions with each region having significant contribution in turnover.
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EUROPE Sweden
& AFRICA Norway INDIA
Canada
Q1FY24 United Kingdom Q1FY24
Austria
2.74 27.26
USA France
Bahrain
Kuwait Hong Kong
Jordan UAE
India
Thailand
Qatar
Oman Philippines
Malaysia Vietnam
Singapore
USA MIDDLE
FAR &
Q1FY24 EAST SOUTHEAST ASIA
Q1FY24
25.92 Q1FY24
0.86
7.44
Within India Outside India Total
Revenue from Operations 27.26 36.96 64.22
Q1FY24 (₹ Cr)
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Acquisitions Manufacturing & Marketing Offices Subsidiary Regional Business Associates
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Clients & Consultants - India
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Clients & Consultants - International
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Financial Performance
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Standalone Performance – Jash, Shivpad & Jash USA
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JASH ENGINEERING LTD. SHIVPAD ENGINEERING PVT. LTD. JASH USA / RODNEY HUNT
Revenue (₹Cr) Revenue (₹Cr/ US$ Mn)
Revenue (₹Cr)
₹ 25.6 / $ 3.1
43.1
36.5
1.1
1.0
₹ 14.6 / $ 1.8
Q1FY23 Q1FY24 Q1FY23 Q1FY24
Q1FY23 Q1FY24
PAT (₹Cr)
PAT (₹Cr) PAT (₹Cr/ US$ Mn)
2.4
2.2
Q1FY23 Q1FY24 -0.3 -0.2 - ₹ 6.8 / - $ 0.8 - ₹ 5.5 / - $ 0.7
Q1FY23 Q1FY24 Q1FY23 Q1FY24
includes other income.
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Consolidated Financial Snapshot
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Revenues (₹Cr) Gross Profit (₹Cr) & Margin (%) EBITDA (₹Cr) & Margin (%)
65.5 50.0 67.7% 59.6% 1.4%
1.1%
40.0 0.9
48.6
30.0
39.0
20.0 32.8
0.5
10.0
0.0
Q1FY23 Q1FY24
Q1FY23 Q1FY24 Q1FY23 Q1FY24
Profit Before Tax (₹Cr) Profit After Tax (₹Cr)
-3.4
-4.0 -3.8 -4.1
Q1FY23 Q1FY24 Q1FY23 Q1FY24
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- includes other income.
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Consolidated Income Statement
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| Particulars (₹ Cr) | Q1FY24 | Q4FY23 | Q1FY23 | FY23 | FY22 |
|---|---|---|---|---|---|
| Total Income | 65.5 | 173.9 | 48.5 | 415.2 | 373.6 |
| Total Expenses | 69.3 | 138.7 | 52.5 | 358.7 | 339.0 |
| EBITDA | 0.9 | 40.8 | 0.5 | 77.1 | 52.9 |
| EBITDA Margin (%) | 1.4% | 23.5% | 1.1% | 18.6% | 14.2% |
| Finance Cost (Net) | 2.0 | 2.6 | 2.1 | 9.9 | 8.6 |
| Depreciation | 2.7 | 2.9 | 2.5 | 10.6 | 9.7 |
| PBT | -3.8 | 35.3 | -4.0 | 56.5 | 34.6 |
| Tax | -0.4 | 2.4 | 0.1 | 4.8 | 2.4 |
| PAT | -3.4 | 33.2 | -4.1 | 51.8 | 32.2 |
| PAT Margins (%) | -5.1% | 19.1% | -8.5% | 12.5% | 8.6% |
| EPS (₹) | -2.8 | 27.6 | -3.4 | 43.2 | 27.1 |
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Business Outlook
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Consolidated Order Book as on 1[st] August 2023
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Jash Engineering Ltd Within India
₹ 446 Cr ₹ 238 Cr
Jash USA / Rodney Hunt
Outside India
₹ 366 Cr
₹ 591 Cr
Combined order book stood at
Shivpad Engineering Pvt Ltd
₹ 17 Cr ₹ 829 Cr
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Consolidated Order Pipe Line as on 1[st] August 2023
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ALREADY NEGOTIATED UNDER NEGOTIATION
Within India Within India
₹ 21 Cr ₹ 21 Cr
Outside India
Outside India
₹ 15 Cr
₹ 7 Cr
Combined
Combined
₹ 36 Cr ₹ 29 Cr
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Consolidated Sales Outlook for FY 23-24
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Jash Engineering Ltd Within India
₹ 345 Cr ₹ 220 Cr
Jash USA / Rodney Hunt
Outside India
₹ 200 Cr
₹ 295 Cr
Combined
Shivpad Engineering Pvt Ltd
₹ 30 Cr ₹ 515 Cr
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Combined consolidated sales is arrived at after deducting inter-company sales.
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Other Developments
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At Unit 1 Additional floor work is in progress and this floor will be inaugurated in end Sept 2023 to coincide with 50 years of the company
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At Unit 2 modifications and improvements to newly allocated SS Welding shop and setting up new Grit blasting facility for SS products
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At Unit 2 a new 10 ton capacity crane for Bay 2 has been ordered and is expected to be delivered by the end Sept and will be commissioned in October 2023
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At Unit 2 new SS Products assembly plant of approx. 28,000 square feet : This plant will be inaugurated in end Sept 2023 to coincide with 50 years of the company
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A new company Jash Invent India Pvt. Ltd., India will be incorporated by the end Sept 2023 and would be capitalized by Sept 2023
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Due to marketing requirements, it is felt that merging of Shivpad with Jash will lead to improved business opportunities for Shivpad product line. Detailed analysis is being carried out to evaluate the pros and cons of this move. A final decision will be taken by end Sept 2023.
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The company aims to acquire an 80% stake of Waterfront Fluid Controls., UK by the end Sept 2023. The process of Due diligence (legal/financial / tax ) has been started and is expected to be completed by the end August
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Management Commentary
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Mr. Pratik Patel
Managing Director
“ The first quarter results are always subdued due to the nature of the industry because major revenue is booked in the 3[rd] and 4[th] quarters of the financial year. Significant material which was ready for delivery could not be billed because of inability of the clients to pay and take delivery in Q1. This affected Q1 revenues.
There has been reasonable growth of 18.3% in standalone revenue but lower dispatches from subsidiary companies have subdued the 1[st] quarter consolidated results. However looking to the billing already achieved till date in Q2 we are quite confident of significant jump in Q2 revenue on standalone as well as consolidated basis.
Improvement in Q1 profitability on standalone basis augers well for annual profitability because in subsequent quarters revenue is expected to grow at a sustained pace. Profitability of subsidiary companies is expected to significantly improve as their Q2 revenue improves.
In the current year we are quite optimistic about meeting the projected revenue and improving the profitability on standalone as well as consolidated basis.
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Shareholders Information
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STOCK DATA
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(As on 11 [th] August 2023)
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NSE Symbol Market
JASH Capitalization
INR 1,632 Crore
Shares
Stock Price
Outstanding
INR 1,360
INR 1.20 Crore
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SHAREHOLDING PATTERN
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(As on 30 [th] June 2023)
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Promoters
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Public
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47.4%
1.6%
Employee
Trusts
(231 Employees)
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THANK YOU
FOR MORE INFORMATION, CONTACT
Siddesh Chawan
Dharmendra Jain Jash Engineering Limited E-mail: [email protected] Ph.:0731-6732700, 0731-2720143
Ernst & Young LLP/ Investor Relations E-mail: [email protected] Ph.: +91 022 6192 0000
RODNEYHUNT INC
JASH ENGINEERING LTD
JASH USA INC
46 Mill Street, Orange, MA 01364, USA Ph. No. (978) 6334362, Email: [email protected] Website:www.rodneyhunt.com
31, Sector-C, Industrial Area, Sanwer Road, Indore, INDIA.
6200 Savoy Dr Ste 750, Houston, TX 77036 USA Ph. No. (281) 9626369, Email: [email protected] Website:www.jashusa.com
Ph. No. +91-731-2720143, 2720034 Email: [email protected] Website: www.jashindia.com
MAHR MASCHINENBAUGMBH
SHIVPAD ENGINEERS PVTLTD.
E&M JASHLTD.
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Mahr Maschinenbau
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Kupferschmiedgass 8, A-2201 Hagenbrunn, AUSTRIA
Ph. No. +4322463521 Email:[email protected] Website: www.mahrmaschinenbau.com
3/86-E, ATC Street, 2nd Main Road, Ambattur Industrial Estate, Ambattur, Chennai , 600 058, INDIA Ph. No. +91-44-4860 6201/48606203 Email: [email protected] Website:www.shivpad.com
905, SilvercordTower2, 30 Canton Road, Tsimshatsui, Kowloon,
HONGKONG
Ph. No. +852 23753180 Email: office@eand ~~3~~ m ~~1~~ jash.com Website: www.e ~~andmj~~ ash.com