Ardee Industries Limited

1. Overview

Ardee Industries Limited is one of India's leading players in the circular economy, specializing in the environmentally responsible recovery and recycling of end-of-life energy storage products and non-ferrous scrap. Originally incorporated in 1993 and converted to a public limited company in 2025, the Company's current business was substantially built after its present Promoters — Sandeep Aggarwal, Nikunj Aggarwal, and Esha Gupta — acquired it in 2021 and commenced manufacturing operations that year, giving it a comparatively short but high-growth operating track record.

The Company manufactures pure lead and lead alloys (lead calcium, lead antimony, lead tin, lead silver and lead cadmium), sold with purity levels ranging from 99.97% to 99.985%, conforming to international standards. Its single Manufacturing Facility is located in Naidupet, Tirupati District, Andhra Pradesh, spread over approximately 7.61 acres, with an installed capacity that has scaled from 54,750 MTPA in Fiscal 2024 to 156,950 MTPA as of the RHP date — nearly a 3x capacity expansion in two years.

Geographically, the Company sells across 12 states/union territories domestically and exports to 8 countries (Singapore, Switzerland, South Korea, Hong Kong, UAE, Japan, Saudi Arabia, USA), with export revenue growing at a CAGR of 138.69% between Fiscal 2024 and Fiscal 2026. On competitive standing, the Company positions itself as one of the fastest-growing players in its peer set, reporting a Revenue CAGR of 58.81% over the last three fiscals (Source: F&S Report), ahead of listed peers Gravita India Limited, Pondy Oxides and Chemicals Limited, and Jain Resources Recycling Limited.

2. Business Model and Revenue Streams

Revenue by Product Segment

Revenue is primarily driven by the sale of recycled and refined non-ferrous metal products, dominated by Pure Lead, which has grown its share of revenue significantly (₹ Cr):

Geographic Revenue Mix

Revenue splits between domestic and export markets, with exports scaling rapidly:

Within exports, Singapore (42.48%) and Switzerland (40.49%) were the largest FY2026 destination markets, followed by South Korea, Japan and Hong Kong.

Customer Concentration and Dependency

Client concentration is a material structural feature. In Fiscal 2026, the top customer alone contributed 40.64% of revenue from operations, with the top 10 customers contributing 91.61% — though this concentration has been decreasing as the customer base diversifies (down from 95.15% in FY2024). The Company served 52 customers in FY2026, of which 36 were repeat customers contributing 85.86% of revenue. Key domestic customer Amara Raja Energy & Mobility Limited and international customer Sebang Metal Trading Co. Ltd are named relationships.

Raw Material Sourcing and Vendor Dependency

Raw materials (battery scrap, remelted lead ingots/blocks, lead scrap, lead master metal) are sourced from 58 countries, with imports rising sharply — 86.94% of purchases were imports in FY2026, up from 61.34% in FY2024, led by UAE (25.23%), Singapore (16.53%) and the USA (11.47%). The top 10 suppliers accounted for 38.48% of total raw material purchases in FY2026 (down from 51.06% in FY2024), indicating a broadening, though still meaningfully concentrated, supplier base.

Pricing and Risk Management Model

The Company operates a back-to-back pricing model, linking customer-quoted prices to London Metal Exchange (LME) rates at order confirmation, which insulates margins from commodity volatility. This is supplemented by board-approved hedging via LME futures contracts, typically covering 60%–100% of exposure. The Company's own brand, 'ARDEE LEAD 9997,' is listed on the LME, and its pure lead is listed on the MCX platform — both rare distinctions among Indian recyclers that support price transparency and customer trust.

3. Products and Service Portfolio

Product Line Breakdown

Capacity and Utilisation

Installed capacity has nearly tripled over the reporting period, directly underpinning the Company's revenue growth story:

As of the RHP date, installed capacity stands at 156,950 MTPA, ahead of the FY2026 disclosed figure, reflecting continued post-period expansion. Management intends to further integrate the lead recycling business of group company Pilot Industries Limited (Bhiwadi, Rajasthan) via a proposed subsidiary/merger structure, subject to approvals.

4. Key Business Strengths

• Established circular-economy leadership: One of India's leading recyclers of end-of-life energy storage products, with capacity scaled nearly 3x in two years to 156,950 MTPA.
• Dual exchange-listed brand credibility: Rare positioning with 'ARDEE LEAD 9997' listed on the LME and pure lead listed on MCX, supporting transparent pricing and global customer trust.
• Disciplined commodity risk management: Board-approved hedging via LME futures covering 60%–100% of exposure, insulating margins from lead price volatility.
• Strategic manufacturing location: Facility near Chennai, Kattupalli and Ennore ports and along NH-16 (Golden Quadrilateral), close to major battery manufacturers such as Amara Raja Energy & Mobility.
• Experienced promoter and management team: Promoters carry over four decades of combined lead-alloys industry experience; KMPs and senior management add a further ~136 years of cumulative functional expertise.

5. Future Growth Strategy

• Capacity expansion and strategic integration: Consolidating the lead recycling operations of group company Pilot Industries Limited (Bhiwadi, Rajasthan) to augment installed capacity.
• Product diversification into adjacent metals: Expansion into plastic granule conversion, and tin/copper refining and recycling, leveraging a newly acquired 5.56-acre land parcel adjacent to the existing facility.
• Deeper geographic penetration: Strengthening presence in Hong Kong, Switzerland, and Japan, building on an export base that grew from 4 to 8 countries between FY2024 and FY2026.
• Leveraging LME listing for global credibility: Using the 'ARDEE LEAD 9997' LME listing to deepen international customer relationships and access new markets.
• Deleveraging the balance sheet: Continuing to improve the debt-to-equity ratio, which has already fallen from 4.87x (FY2024) to 1.25x (FY2026), partly funded by Net Proceeds earmarked for debt repayment.
• Working capital scaling to match demand: Deploying incremental working capital (a primary use of Fresh Issue proceeds) to support longer export receivable cycles and uninterrupted raw material availability as capacity utilisation rises.