`SP 4D` grading to Ellume Solar Private Limited

Ellume Solar Private Limited
Grading Drivers
ICRA has assigned a ‘SP 4D’ grading to Ellume Solar Private Limited (ESPL/the company), indicating
‘Weak Performance Capability’ and ‘Weak Financial Strength’ of the channel partner to undertake
off-grid solar projects*. The grading is valid for a period of two years from the date of assignment of
grading i.e. till March 30, 2017 after which it will be kept under surveillance.
Strengths
Strong parentage, with flagship company Hi-Fab Engineers Private Limited
commanding a reputed brand name in the mechanical engineering sector
Promoters proven track record in solar thermal sector , with installations in the
range of 2 lakh LPD; experienced technical team is in place for solar initiative
Risk Factors
Limited track record in solar PV space with installations done on a pilot basis
without recording any revenue in the PV domain till date
Currently the pending order book consist only of 50kW order for R&D purpose
Scaling up of business in PV domain remains the key
Order inflow and timely execution remains key for growth of solar venture going
forward
Loss making operations at present with negative net worth due to limited
installations
Year of Formation
Fact Sheet
Office Address
*
Shareholding Pattern
2010
Shree Building, 4th Floor, Shantilal Modi Road, Kandivali
(W) Mumbai 400 067.
Mr Rajendra Damania - 50%
Mrs. Jyoti Damania – 50%
Incorporated in 2010, Ellume Solar Private Limited is currently engaged in the
manufacture of solar water heaters and is planning on venturing into the PV segment.
The company is already conducting research in the PV segment and has come up with
the product profile but is yet to launch them formally. R&D installations has been done
for ~36.5 kW consisting of solar pumps and rooftop solar projects. Till date, the
company has installed solar water heaters to the extent of 2 lakh LPD.
This is for Solar PV
SI Related Business – Weak Performance Capability
Promoter Track Record: Mr. Rajendra Damania is Chairman & CEO of Ellume Solar
private Limited with more than 30 years of experience in engineering and technology. He
is also a founder and Managing Director of HI-FAB Engineers Pvt. Ltd with core
competency of designing and manufacturing Mechanical Seals. Ellume Solar Private
Limited has done PV installations to the extent of ~36.5kW consisting of 2 solar water
pump aggregating to 16.5kW and a rooftop solar project of 15kW. The company has an
order book of 50kW from its group company Hi-Fab Engineers Private Limited. ICRA
notes that the installations conducted by the company are on an R&D basis and not on
commercial basis and thus no revenue has been recorded against the same till date.
Technical competence and adequacy of manpower: The Chairman and CEO, Mr.
Rajendra Damania has an experience of over 30 years in the power domain. The Vice
President, Mr Virat Damania has experience of over 10 years and is a post graduate in
industrial engineering from State University of New York, Buffalo. The company has also
hired experienced personnel as well as trainees. ESPL also has employed a regional
sales manager who has over 20 years of experience in the sector and a sales executive
who has around 2 years of experience in the industry. The company’s manpower base is
adequate given the current scale of operations; however with rise in order book, the
company may have to look at hiring additional people or further tie-up with third party
associates.
Quality of suppliers and tie ups: The firm procures panels primarily from China as well
as from India. Solar water heater accessories and glass tubes and ETC panels are
procured from Haining Oupairineng Solar Water Heater Company Limited, China and
Solar Machines, Tanks, PV panels, PV street lights, PV Pumps, PV back up, and solar
accessories are mainly procured from Taian Topsun I& E Ltd, China. And Jiangsu Micoe
Solar Energy Company Ltd. Pipes and other accessories are procured from Indian
suppliers, namely Panchal Engineering Works and Green Eye Water Tank.
Financial Strength – Weak
Customer and O&M Network: Ellume Solar Private Limited has not executed any
contract in the PV segment yet on a commercial basis. However, ESPL is engaged in the
business of solar water heaters for the past 2 years and has a well established distributor
and dealer network across Maharashtra and parts of Karnataka. The company is planning
on leverage the existing dealer distributor network to market the PV products. The
company also has offices across 10 cities in India which will be used for the O&M network.
Revenues
Rs. 0.006 crore in FY 2014
Return on Capital Employed (RoCE)
-53.18% as of FY 2014
Total Outside Liabilities / Tangible Net worth
-4.72x
Interest Coverage Ratio
No interest on debt
Net-Worth
Net worth of Rs. (0.05) Cr as on March
31, 2014
Current Ratio
Relationship with bankers
Current ratio of 18.13 times
Bankers are satisfied with company’s
conduct
The overall financial profile of the company is weak, given small scale of operations as
well as negative net worth as on March 31, 2014.
March 2015
For further details please contact:
Analyst Contacts:
Mr. Anjan Ghosh (Tel. No. +91-22-3047 0049)
aghosh@icraindia.com
Relationship Contacts:
Mr. L. Shivakumar, (Tel. No. +91-22-2433 1084)
shivakumar@icraindia.com
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Bangalore
Bangalore
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'The Millenia'
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Murphy Road, Bangalore 560 008
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Pune
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Email: shivakumar@icraindia.com
5A, 5th Floor, Symphony, S.No. 99, CTS 3909, Range Hills
Road, Shivajinagar,Pune-411 020
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