Rishabh Instruments Limited: Metering the Market with a Twist
Welcome aboard, folks! Today, we're taking a deep dive into the world of Rishabh Instruments Limited, your one-stop shop for all things testing and measuring. Let's break it down in simple terms:
Let's kick things off with a quick intro to the company. Established back in 1982, Rishabh Instruments has been in the game of making cool gadgets that help industries measure stuff accurately. From Shunts to Digital Panel Meters, they've got quite the arsenal of products, serving a diverse range of customers. And hey, they don't just stop at gadgets; they also offer aluminum high-pressure die-casting solutions for those looking for precision components.
Now, let's talk numbers. Rishabh isn't playing small, with 5 manufacturing units spread across India, Poland, and China. They've got a whopping 270+ dealers worldwide, reaching over 70 countries. And did I mention they make everything in-house? Yep, they're like the DIY enthusiasts of the industrial gadget world.
But what really sets Rishabh apart? Well, for starters, they're the global leaders in analog panel meters and low-voltage current transformers. Plus, they're killing it in Poland, where they're the go-to brand for meters, controllers, and recorders. Back home in India, they're rocking the charts as the number one player in electrical transducers and split-core current transformers.
Now, let’s have a look at the revenue distribution. For the fiscal year 2023, Rishabh booked 34% of its revenue from India and the remaining 66% from the rest of the world. When it comes to products, electrical automation takes the crown with almost 43% of the revenue, followed by aluminum high-pressure die-casting at nearly 40%.
Let's break down their product lineup:
Electrical Automation Devices:
You know, the thing that keeps the lights on and the machines running. With the global market for electrical automation booming, Rishabh's got its eyes set on expanding its product portfolio to cater to various industries.
From I/O converters to paperless recorders, they've got everything you need to keep your power generation, transmission, and distribution systems in check.
These devices find their way into all sorts of industries, from power plants to pharmaceutical companies, ensuring that everything runs perfectly.
Rishabh is on a mission to expand their product range to include even more crazy gadgets like communication protocol converters and multifunction transducers.
Metering, Control & Protection Devices:
Ever wondered how industries keep track of all that electrical mess? Well, wonder no more, because Rishabh Instruments has got you covered with their metering, control, and protection devices.
Whether it's analog/digital panel meters or protection relays, these highly efficient products are essential for keeping electrical systems in check, whether it's in your home or a massive industrial complex.
And with the government’s boost in infrastructure projects and renewable energy, the demand for these devices is skyrocketing faster than ever.
Portable Test & Measurement Instruments:
Whether you're fixing up your car or tinkering with your home electronics, these gadgets are your go-to companions for all your testing needs.
They are used to test and measure the various electrical parameters, e.g., voltage, current, power, etc. onsite. Portable Test & Measurement (T&M) equipment plays a central role in enabling digital transformation, IoT, and Industry 4.0.
In this segment, where both Indian and Chinese players limit themselves to low-end maintenance and repair solutions, Rishabh has extended its offerings to professional, industrial TMI products capable of serving needs in modern laboratories and even aerospace.
Solar String Inverters:
String inverters can be used for residential and medium-sized commercial solar PV installations. Solar string inverter segment growth is directly proportional to the increase in solar PV installations.
Customers prefer string inverters to central inverters because of their reliability, modular design, ease of installation, and low maintenance.
The Indian solar string inverter market was valued at USD 778.14 million in 2022 and is forecasted to grow at a CAGR of 10.6% to reach USD 1290.6 million in 2027. India is the second-largest market in Asia Pacific occupying more than 25-30% of the Asia Pacific market for solar string inverters.
Plus, with India's solar market booming like never before, Rishabh's got a front-row seat to the renewable energy revolution.
Aluminium High-Pressure Die Casting (HPDC)
Last but not least, let's talk about Rishabh's aluminium high-pressure die casting solutions. These products are the backbone of the automotive industry, churning out engine blocks and other essential components.
The High-Pressure Aluminium Die Casting market in India is mature and has continuously grown in production capability to meet both domestic and global requirements.
The automotive industry is the largest revenue contributor for the high-pressure aluminium die casting market.
Lumel holds 0.09% market share in the overall EMEA Aluminium High Pressure Die Casting Market.
But it's not all sunshine and rainbows for Rishabh. Like any company, they've got their fair share of challenges like:
They are dependent on the Poland Manufacturing Facilities for a significant portion of production. Poland Manufacturing Facility II requires natural gas for the aluminium high-pressure die casting business. Due to the conflict between Russia and Ukraine and sanctions imposed on Russia by the Government of Poland, Russia may shut down the supply of natural gas to Poland.
Rishabh is highly dependent on its subsidiaries for revenue generation.
Failure to manage material purchasing, shortage in supply of major production inputs can adversely affect their supply chain.
Currently the manufacturing facilities are under utilized, the average utilization is around 50% of the capacity, whereas for Lumel its just 20%.
But hey, they've got a solid business moat:
Rishabh is a global leader in manufacturing and supply of analog panel meters and is among the leading global companies in terms of manufacturing and supply low voltage current transformers.
At Rishabh Instruments, under all product segments, 99% of manufacturing operations are done in-house (in India) and only 1% of the total turnover is spent on outsourcing processes.
Rishabh has a strong diversified product portfolio and services. The High-pressure Aluminium die casting business from Lumel also helps the company to bring new customers for the electronic and electrical products. As the Aluminium die castings are mainly used by big automotive, automation and other industrial customers, it eventually opens business doors for products from the other segments thus building synergy between the two business units.
Serving over 3000 customers globally, Rishabh has an extremely wide customer base spread across the globe ensuring the avoidance of business risk due to concentration and dependency on a few big customers.
So there you have it, folks – a peek into the world of Rishabh Instruments Limited. They may not be the flashiest company on the block, but when it comes to keeping industries ticking, they're the unsung heroes of the electrical world.