Admach Systems Limited designs and manufactures customized machines and automation solutions for the Indian and global engineering industry. The company earns revenue through the sale of special purpose machines, automation systems, robotic material handling solutions, and related after-sales services. Its products are used across steel, automobile, food, tooling, and general engineering industries to improve efficiency, precision, and productivity.

Key Clients and Manufacturing Facilities
The company has served more than 34 customers in the last year, with over 13 customers associated for more than 15 years. Key global clients include Arcelor Mittal (UAE), IAS GmbH (Germany), Sofratest (France), and SCHULER PRESSEN GmbH. Admach operates a single integrated manufacturing facility at Nandoshi, Pune, which houses design, fabrication, assembly, testing, and quality control operations.

Product Portfolio, Order Book, and Execution
The product portfolio includes special purpose machines, automation systems, assembly machines, packaging machines, and robotic material handling systems. These products are typically installed in mid to advanced stages of the client’s production lifecycle, directly impacting productivity and quality. The company executed 100 units in FY25 against an installed capacity of 100 units, indicating strong order execution and improving capacity utilization.

Mergers, Capex, and Expansion Plans
The company was formed through the acquisition of the proprietorship business of M/s Admach Systems in 2009, providing an established operational base. Going forward, Admach plans capacity expansion, investment in advanced automation and testing equipment, and deeper penetration into international markets. The IPO proceeds are expected to support working capital needs and future capital expenditure initiatives.

Employees and Banker
As of March 31, 2025, the company had 58 employees. The Banker to the Company is ICICI Bank Limited.

Management and Growth Vision

The company is led by promoters Ajay Chamanlal Longani, Rajni Ajay Longani, Mahesh Chamanlal Longani, and Sonal Mahesh Longani, who bring extensive experience in machine design and engineering solutions. Management focuses on long-term growth through technology-driven customization, export expansion, and deeper client relationships. Funding for capex and expansion is planned through internal accruals, bank borrowings, and proceeds from the proposed IPO.

Industry Overview

Admach operates in the industrial machinery and automation segment, part of the broader engineering industry. The Indian industrial machinery market is valued at over USD 15–18 billion and is growing at 8–10% annually, driven by manufacturing automation and “Make in India.” Globally, the industrial automation market exceeds USD 200 billion with a CAGR of around 9%. Key global leaders include Siemens, ABB, and Rockwell Automation.

Key Risk Factors

1. Customer Concentration Risk
   A significant portion of revenue is derived from a limited number of long-term customers. Loss of any major client could adversely impact revenue, cash flows, and overall financial performance.
2. Project Execution Risk
   The company undertakes customized machine projects with defined timelines. Delays in procurement, fabrication, or installation could lead to cost overruns, penalties, or strained customer relationships.
3. Dependence on Skilled Workforce
   Operations rely heavily on skilled engineers and technicians. Attrition or inability to attract qualified talent could affect design quality, execution efficiency, and future growth prospects.
4. Working Capital Intensity
   The business requires significant working capital due to long project cycles and receivables. Any mismatch in cash flows may increase reliance on short-term borrowings.
5. Industry Cyclicality
   Demand for capital equipment is linked to industrial investment cycles. Economic slowdowns or reduced capex spending by clients may negatively affect order inflows and profitability.

Key Strengths, Moat, and Opportunities

1. Strong Customization Capability
   Admach specializes in tailor-made machines, creating high entry barriers and reducing direct price competition, resulting in stronger client stickiness and repeat orders.
2. Long-standing Client Relationships
   Over 13 customers have been associated for more than 15 years, reflecting trust, reliability, and consistent execution capability.
3. Integrated Manufacturing Facility
   In-house design, fabrication, assembly, and testing enable better quality control, faster execution, and improved cost efficiency.
4. Growing Export Presence
   The company has successfully executed projects in Europe, the Middle East, and Asia, providing diversification beyond domestic markets.
5. Improving Capacity Utilization
   Execution increased from 52 units in FY23 to 100 units in FY25, indicating strong demand visibility and operational scalability.
6. Favorable Industry Tailwinds
   Rising automation adoption, global manufacturing shifts, and demand for productivity-enhancing solutions present strong near-term growth opportunities.