Corporate Statutory Financial

Overview Reports Statements

01-22 23-118 119-264

We are pleased to announce that our dedicated Mill Lining As a responsible corporate citizen, we strive to contribute to
facility for Mining Liners has already gone on stream with the socio-economic development of our communities while
an installed capacity of 50,000 TPA. Further we have preserving the environment. Initiatives such as providing
resumed our Brownfield expansion for Grinding Media quality education, ensuring digital literacy, offering
involving an additional investment of around ` 200 crores healthcare services, and protecting biodiversity empower
to further augment our capacity by 80,000 MTPA, which the underprivileged and foster self-reliance.
will increase our total capacity to around 5,20,000 MTPA
We extend our deepest gratitude to all stakeholders who
by March 2025. We remain extremely bullish on the long
have stood by us. Improving productivity and employee
term growth prospects in the mining industry given the huge
morale remain key priorities for us. Looking ahead, our
conversion opportunity available to us for converting the
large and well-equipped R&D team will continue to develop
mines from the conventional Forged Products into our High
comprehensive solutions to meet evolving market demands.
Chrome Solutions. Our unwavering focus on core industries
like Cement and Mining and our commitment to customer As we step into the next fiscal year, we pledge to deliver
satisfaction positions us well for continued success. value to all those associated with us through ethical,
sustainable, and profitable means. Our mission remains
We remain committed to broadening our customer base and
steadfast, and we are excited about the opportunities that
enhancing existing relationships. Our primary focus is on
lie ahead.
key markets such as North America, LATAM, Australia, and
CIS, as well as critical countries like Chile, Peru, Brazil, and Best Wishes,
Canada. Market dynamics remain unchanged, and we forge Bhadresh K. Shah
ahead with an unwavering focus on gold, copper, and iron. Managing Director
AIA Engineering Limited

Annual Report 2022-23  5

About
AIA Engineering
A leading provider of cutting-edge wear
components and innovative solutions

Incorporated in 1991, AIA Engineering Limited

(hereinafter referred to as ‘the Company’, ‘AIA’
or ‘it’) is a distinguished entity in the design,
development, production, installation, and servicing
of high chromium wear, corrosion, and abrasion-
resistant castings. These superior products
specifically serve the cement, mining, and thermal
power-generating industries, highlighting the
Company’s capacity to cater to diverse market
demands.

Industries Served

Mining Cement Quarry Tharmal

Mining Cement Quarry Thermal

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Overview Reports Statements
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Committed to delivering customised solutions, the Company excels in crafting metallurgically

optimised products to flawlessly align with each application’s unique requirements. Beyond
mere product delivery, it provides process optimisation services. These services hinge upon
a thorough technical evaluation of the customers’ distinctive needs, ensuring an integrated
approach that elevates the overall customer experience.

Such a comprehensive methodology has propelled the Company to the forefront of the
industry, acclaimed for its dedication to quality, exceptional service delivery, and cutting-edge
innovation. As a result, it is globally recognised and trusted as a solution provider. This well-
deserved reputation mirrors the Company’s steadfast dedication to excellence, and it continues
to position itself as a paragon of innovation and quality in the industry.

~ 45 Years’ Global
Rich Industry Experience Presence

4,40,000 TPA
Total Manufacturing Capacity

ISO 9001:2015
Certified

Annual Report 2022-23  7

Milestones
of AIA’s Journey
With a relentless pursuit of excellence and a commitment to
delivering innovative solutions, AIA has established itself as
a leading force in providing innovative products and services.
From humble beginnings, AIA has evolved into a trusted partner,
catering to the diverse needs of its esteemed clients worldwide.

2019 2020
Installed capacity enhancement by Obtained ISO 14001 certification for environmental
50,000 MTPA at Kerala’s GIDC plant management system and OHSAS 18001
certification for health and safety management
Installed 8 Wind Turbines of 2.1 MW each
system at its Moraiya and Kerala Plants

2018 2017
Developed mill lining Commissioned the Phase 1 of the Kerala GIDC, a
solutions for mine greenfield facility near Ahmedabad for grinding
media production

1991 1996
Amalgamated Ahmedabad Received ISO 9001 certification of
Induction Alloys Private Quality Management Systems
Limited with the Company, AIA

1989 1985
Began producing high chromium Started production of high
liners, level control diaphragms, and chrome grinding media
other diaphragms

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Overview Reports Statements
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2022 2023
Installed 2 Wind Turbines Added two Hybrid Projects ( 2.1 MW Windmill + 1.89
of total 5.4 MW MWp Solar) at Village Dedan, Gujarat, taking total
Renewable Energy Capacity to 32.28 MW.

Expanded capacity of 50,000 MT in Castings at Kerala

GIDC Facility

2014 2011
Expanded capacity to 2,60,000 Commissioned a new plant
MTPA at Moraiya facility for mining liners and vertical
mill parts

2003 2005
AIA incorporated Vega ME as a Listed on the Indian
Wholly-Owned Subsidiary Stock Exchanges

1979 1978
Commenced operations and started producing Incorporated by Mr. Bhadresh K
wear parts for cement and power plants Shah as Ahmedabad Induction
Alloys Private Limited

Annual Report 2022-23  9

Industry Presence
With a long-standing history of delivering effective solutions,
AIA has established itself as a trusted provider of wear
components and innovative technologies. The Company’s
expertise in metallurgy, grinding applications, and component
design enables it to manufacture high-quality parts for tube
mills, vertical mills, pulverisers, and more.

120+
Countries Served

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 Corporate Statutory Financial
Overview Reports Statements
01-22 23-118 119-264

Canada

USA UK
UAE

UK
USA
China

Netherlands

Indonesia

South Africa

Chile South Africa

Ghana Australia

Chile
Ghana Australia

Subsidiaries and Representative Offices Global Logistics Network (Warehouses)

This map is a generalised illustration only for the ease of the reader to understand the locations, and it is not intended to be used for reference purposes. The
representation of political boundaries and the names of geographical features/states do not necessarily reflect the actual position. The Company or any of its directors,
officers or employees, cannot be held responsible for any misuse or misinterpretation of any information or design thereof. The Company does not warrant or represent
any kind of connection concerning its accuracy or completeness.

Annual Report 2022-23  11

Engineering Solutions

Cement
Strong foundation in the cement production industry, with a
history of success

Specialised in providing effective solutions for worn-out parts

in the cement sector as well as manufacturing parts for tube
mills and vertical mills

Backed by extensive experience in metallurgy, grinding

applications, and component design

Led by a unique manufacturing approach that significantly

enhances the working life of components

Pioneer in innovative solutions that reduce maintenance

costs and improve cost effectiveness for customers

Application
Grinding of limestone and cement

Mining
Focussed on minimising downtime in mining operations for
achieving success

Specialised in producing durable wear components with extended

lifespan, which reduce operating costs

Led by expertise in developing specialised alloys and advanced

manufacturing techniques for various minerals

Producing modified components for specific mineral types. Thus,

increasing efficiency of machinery while extracting

Pioneer in mill lining solutions to optimise throughput and reduce

operational expenses

Application
Mineral ore grinding prior to processing for separation of
different materials

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Overview Reports Statements
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Thermal
Crafting long-lasting wear components with extended
durability for reduced operational costs

Innovating alloys and employing cutting-edge manufacturing

techniques customised for diverse minerals

Producing improvised shell liners & grinders that has a highly

positive impact on the efficiency

Optimum utilisation of resources by the pulverisers which

grind the coal and avoid any wastage before feeding them to
the boiler

Application
Coal grinding prior to entering the boiler

Quarry
Created specialised alloys and manufacturing methods
suitable for a range of mineral varieties
Producing enhanced wear machinery components for
extraction purposes for increased productivity and
profitability
Specialising in extraction of minerals like iron, gold, lead/
zinc, bauxite copper and phosphorus

Application
Crushing of aggregates

Annual Report 2022-23  13

Strategic
Imperatives
Through a careful analysis of market dynamics, customer needs,
and technological advancements, the Company has formulated
a set of strategic imperatives that guide its decision-making
and shape its future trajectory. These imperatives encompass
various aspects, including product innovation, customer
engagement, operational efficiency, and sustainable practices.
At the heart of the Company’s mission lies a relentless pursuit of customer satisfaction. AIA Engineering has strategically
embedded a meticulous series of quality checks throughout every operational process, leaving no room for compromise. These
checks are reinforced by vigilant supervision and regular mill audits, ensuring that the engineering solutions are nothing short of
excellence.

The unwavering commitment to customer satisfaction drives the Company to go above and beyond. AIA Engineering
understands that each customer is unique, with distinct requirements and expectations. That’s why the Company has
established a purpose-driven approach, tailoring the engineering solutions to address their specific needs. By consistently
delivering results that align perfectly with the customers’ demands, the Company forges enduring partnerships based on trust
and mutual success.

Quality Checks Supervision Regular Mill Audits

for increased customer to closely monitor installation to ensure higher efficiencies
satisfaction of each wear part and better adaptability

Key Focus Areas

Adapting Strategically Expanding the Constantly Prioritising optimal

renewable power positioned in offerings beyond investing performance
on a large scale the market by grinding media and to enhance by introducing
to strengthen leveraging a deep tapping into the capabilities and automation and
sustainable energy understanding of growth potential product portfolio streamlining
practices various mill lining of each type of mill to maintain a production
options lining competitive edge processes to drive
and meet evolving efficiency
customer needs

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Overview Reports Statements
01-22 23-118 119-264

Capex Plans Restructuring of Manufacturing

AIA continues to focus on capacity expansion to provide Operations
tailored solutions and fulfil global demand. During the The restructuring of the Company’s manufacturing
year, the Company commissioned mill liners plant with a operations encompasses a range of strategic initiatives
capacity of 50,000 TPA. Through its innovative solutions, aimed at optimising operational efficiency. These initiatives
the Company expects to reduce customer expenses and include some capacity de-bottlenecking and restructuring,
increase in throughput significantly. creation of warehouse space, pattern storage facilities
and related infrastructure investment at an estimated
cost of ` 200 Crores. While the primary objective of this

195 Crores
restructuring is not to directly augment production capacity,
` it undoubtedly enhances their capability to manufacture
Capex incurred during F.Y. 2022-23 specialised parts with precision and reliability. Company will
also see 20,000 MT of capacity addition in castings because
of de-bottlenecking.

Kerala GIDC Project

` 200 Crores
Capex planned for reorganisation
The Company continues to proceed with its brownfield
capacity expansion of grinding media capacity. With
an ongoing capex of ` 250 Crores, it is estimated to be Moreover, there is a significant emphasis placed on power
commissioned by the end of F.Y. 2024-25 consumption and its environmental impact. Aligned with the
commitment to sustainability, The Company is dedicated to
intensifying its utilisation of captive and renewable energy
sources. By prioritising the adoption of environmentally-

` 250 Crores friendly practices, AIA Engineering endeavours to reduce

the carbon footprint while ensuring long-term operational
Capex to be incurred by F.Y. 2024-25 sustainability.

` 60 Crores
Investment in renewable energy
resources

Annual Report 2022-23  15

Financial
Performance
The Company’s steadfast business model has consistently
yielded impressive financial results, exemplifying its adeptness
in managing risks and generating sustainable profits. AIA’s
prudent investment strategies and rigorous risk management
practices bolster its financial stability, enabling it to meet its
obligations and deliver long-term value to its stakeholders in
the engineering sector.
EBITDA (` in Lakhs)

Net Sales (` in Lakhs)

1,47,518
78,079

82,219

82,744

87,724
2,96,908

2,89,132

2,82,548

3,52,316

4,85,179

2018-19 2019-20 2020-21 2021-22 2022-23

2018-19 2019-20 2020-21 2021-22 2022-23

Profit After Tax (after (` in Lakhs)

EBITDA Margin (%)
Minority Interest)
26.30

28.44

29.28

24.90

30.40
1,05,593
51,083

59,036

56,612

61,968

2018-19 2019-20 2020-21 2021-22 2022-23

2018-19 2019-20 2020-21 2021-22 2022-23

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Operating Profit Margin (%)

26.30

28.44

29.28

24.90

30.40
Profit Margin (%)

2018-19 2019-20 2020-21 2021-22 2022-23

17.20

20.42

20.04

17.59

21.78
Net Worth (` in Lakhs) 2018-19 2019-20 2020-21 2021-22 2022-23

Production Volume (in MT)

3,51,371

3,70,129

4,24,431

4,75,496

5,69,133

2,89,666

2,71,274

2,62,969

2,78,590

2,88,088
2018-19 2019-20 2020-21 2021-22 2022-23

2018-19 2019-20 2020-21 2021-22 2022-23

Annual Report 2022-23  17

CSR
Commitments
Our commitment to CSR is not only driven by our responsibility
as a corporate citizen, but also by the recognition that sustainable
practices are key to our long-term growth. We strive to ensure a
resilient future for AIA and the broader communities in which we
operate.
CSR CONTRIBUTION OF
` 1,289.32 LAKHS IN THE
FIELDS OF :

Education - ` 603.12 Lakhs

Gyan Deep Programme
Scholarship Programme
LXS Foundation
Jan Jagrati Sevarth Sansthan
IIT, Kanpur

Healthcare - ` 364.06 Lakhs

Care Institute of Medical Sciences Foundation (CIMS)
Dr. Jivraj Mehta Smarak Health Foundation
Gujarat Cancer Society
Nihar Charitable Trust

Environment - ` 167.36 Lakhs

ARC Foundation

Promotion of Sports - ` 64.53 Lakhs

National Heritage/Art/Culture - ` 55.25 Lakhs
Karmakshetra Educational Foundation (DARPANA)
Eradicating Hunger - ` 35.00 Lakhs
Tulsi Vallabh Nidhi
Akshay Patra Foundation

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Overview Reports Statements
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Education Initiatives

Gyan Deep Programme

AIA has continued to expand the Company’s educational initiative called as Gyan
11
Deep Programme through:
Schools Covered

(i) Yuva Unstoppable (ii) Jeevantirth VaaGaLe Utsav

It establishes an environment that promotes the utilisation Jeevantirth is implementing the ‘VaaGaLe Utsav’ project
of Information and Communications Technology (ICT) in and is focussed on Joyful Learning & Meaningful Education.
Government Schools. This includes ensuring widespread This project aims to benefit government schools in
access to ICT devices, internet connectivity, and fostering Ahmedabad. Its objective is to prepare these schools
ICT literacy among students. The objective is to empower for child-centred education by facilitating knowledge
every student with digital literacy while equipping teachers construction, fostering relationships, and providing
with the necessary skills to effectively deliver education essential materials such as Activity Sheets, Working
using IT resources and contemporary techniques. By Materials, and Stationery for Students. Additionally, the
fostering self-learning and shifting the learning paradigm project encourages active participation in workshops like
from teacher-centred to student-centred, this initiative scientific fairs to rekindle interest in education through
encourages critical thinking, analytical skills, and overall interactive and experiential learning methods.
academic growth.

AIA Scholarship Programme

AIA CSR Foundation addresses the challenges of education
among marginalised communities and fosters employment
opportunities through its innovative education scholarship
management system, Vidyasaarathi. By providing
educational support, this system empowers deserving
students to overcome financial barriers and pursue higher
education. Through its initiatives, the Foundation not only
contributes to the growth of education but also creates
pathways for socio-economic development, benefiting both
individuals and the nation at large.

Annual Report 2022-23  19

LXS Campaign
LXS Foundation is aiming to develop an Innovation Centre
for underprivileged girls of Ahmedabad and Gujarat. It is
restoring old school building located at Raikhad-Khadia, Old
City, Ahmedabad. (Gujarat).

Jan Jagrati Sevarth Sansthan

Jan Jagrati Sevarth Sansthan, an Indian non-profit organisation, uplifts marginalised communities through education,
skill development, and health initiatives. Founded by dedicated individuals, it employs participatory methodology for
sustainable impact. The organisation is also establishing an English Medium Co-Education School in Rajasthan for holistic
student growth. It strives to combat illiteracy and improve hygiene among rural populations, enhancing their quality of life.

20  AIA ENGINEERING LIMITED