Key Strategic Initiatives

Business Restructuring

  • Commercial strategy focused exclusively on Services business
  • Growth in Services Core business through penetration in OEM fleet
  • Contract manufacturing and Leave & Licence agreement at Vadodara
  • Expanded international presence in Saudi Arabia, Turkey, Australia, UAE, Malaysia, Indonesia, and Morocco

Financial Improvements

  • 8x+ increase in Net Worth
  • 18x+ increase in Bank balance
  • INR 1,364 crores reduction in bank guarantees over 2 years
  • Dividend declared in 2026
  • Hydro & Gas slump sale in FY 24-25 provided INR 295 crores EBITDA boost
  • BHEL settlement resulted in ~INR 116 crores P&L impact, INR 343 crores cash inflow, and INR 423 crores bank guarantee exposure release

Proposed Demerger of Durgapur Business

Overview of Durgapur Facility

  • Located in West Bengal, spread across 661 acres of leasehold land
  • Comprises industrial factory unit and residential township
  • Specializes in manufacturing power boilers components, pressure vessels, piping, and coal mills for thermal power plants
  • Significant underutilization in last two years (2023-2025) with average loss of ~INR 27 crores per year booked in GEPIL

Demerger Details

  • Scheme of Arrangement to demerge Durgapur business unit to JSW Energy Limited
  • Transition on "going concern, as-is-where-is" basis, retrospectively effective 1st July 2025
  • Subject to sanction by National Company Law Tribunal (NCLT)

Shareholder Entitlement

  • Shareholders to receive 10 fully paid-up equity shares of JSW Energy (₹10 each) for every 139 fully paid-up equity shares of GEPIL (₹10 each)
  • Existing number of GEPIL shares remains unchanged
  • Example provided: 139 GEPIL shares @ INR 873/share = INR 121,347 value continues unchanged, plus 10 JSW Energy shares @ INR 550/share = INR 5,500 additional value

Operational Continuity Assurance

  • No disruption expected to manufacturing and fabrication support for Core Services business
  • 5-year manufacturing services agreement with JSW Energy secures reserved capacity at pre-agreed schedules and pricing
  • Concurrent efforts to establish independent supply chain progressing well, with full supply chain independence targeted in near future

Rationale for Demerger

  • Simplifies GEPIL's portfolio by exiting under-utilized asset
  • JSW Energy is established Indian public listed energy company expected to ensure better utilization of the facility
  • Enables both entities to pursue dedicated growth trajectories in evolving energy sector