CMP-592
Ingersoll Rand (India) (IR) a 100% debt free company is a 74% subsidiary of 148 years old the Ingersoll Rand Company USA which is the holding company of Ingersoll Rand India with its headquarters in Swords, Ireland.
Ingersoll Rand India has a rich history in India with its establishment dating back to 1921 in India. The company manufactures wide range of products including Rotary, centrifugal and reciprocating air compressors, and treatment products with comprehensive multi-year service agreements, audits, parts, and accessories and other industrial products and tools.The company has its manufacturing locations in Naroda (Ahmedabad) plant and in Sahidabad plant. Ingersoll Rand (India) (IR) products are primarily sold to industries in automotive, metals, pharmaceutical and textile sectors. The growth in these sectors is fuelled by the increased demand in domestic consumption. In addition to the growth in these sectors, the Government is expected to make key investments in development of infrastructure which is likely to further the growth of the company.
Parent History-:
Ingersoll-Rand Inc. is a diversified industrial manufacturing company formed in 1905 by the merger of Ingersoll-Sergeant Drill Company and Rand Drill Company, rival companies that had each been founded in 1871.Ingersoll Rand USA is the 16th oldest company and the 12 oldest continuously listed company on the NYSE. Ingersoll Rand group is a global diversified firm providing products, services and solutions to enhance the quality and comfort of air in homes and buildings, transport and protect food and perishables, secure homes and commercial properties, and increase industrial productivity and efficiency. The group reported a $ 14.2 B of revenues in CY 2017. It has a total of 867 facilities around the world, including 51 manufacturing facilities worldwide. Ingersoll Rand in India is based out of 22 locations.
Financials-:
The company has paid a special dividend in FY 18 of Rs 202 per share out of its accumulated surplus profits. Hence interest bearing liquid funds have come down by around Rs 775 crore. Which will significantly affect the Liquid Funds and Cash Reserves.
Company has Cash and Equivalents of about 117 Crores.
Other Income is expected to fall on account of fall in other income being earned on surplus cash which has been distributed through special dividend. However operating profit is expected to compensate for the Fall.
The company is focusing on specific sectors like power, pharmaceuticals and textiles to grow the revenues through value added services. Cost reduction will continue to be a focus area to ensure profitability. Despite slow growth in economy the management is confident that the company will continue to create new markets through its innovations for emerging economies and enhanced focus on services.
