Shining Tools Limited is engaged in the designing and manufacturing of high-performance solid carbide cutting tools and provides reconditioning services for used tools. The company earns revenue primarily through customized and standardized carbide tools used in CNC machining, metal cutting, and engineering applications across industries like automotive, aerospace, medical, energy, and defense.

Key Clients and Manufacturing Facilities:
The company serves both private and government clients across India. It has a modern manufacturing facility at Pipaliya, Rajkot (Gujarat), spread over 1,945.86 sq. mtr., equipped with advanced CNC machines, Zoller inspection systems, and a 50 KW rooftop solar plant. The facility ensures precision manufacturing and sustainability in operations.

Product Portfolio and Order Book:
Shining Tools offers a wide range of standardized and customized solid carbide tools including end mills, drills, reamers, thread mills, and milling cutters. Customized tools contribute 73.19% of FY25 revenue. The company maintains a strong order book driven by recurring demand from automotive, engineering, and defense sectors. Orders are executed within 8–21 days depending on complexity, ensuring high client retention and repeat business.

Mergers, Capex, and Expansion Plans:
No merger or acquisition has been recorded in the past decade. The company plans to expand capacity from 1,25,000 to 1,50,000 units annually by adding 6 CNC machines to the existing 5, supported by IPO proceeds. The capex is aimed at meeting rising demand, diversifying into new geographies, and launching a new reconditioning unit.

Employees, Exports, and Bankers:
The company employs around 50+ skilled personnel, with a growing export focus in Asia and Europe. It banks primarily with ICICI Bank Limited and operates from Rajkot, Gujarat, with nationwide client coverage.

Management and Vision

The company’s promoters, led by Mr. Dilipbhai Bhupatbhai Chauhan, have over a decade of expertise in tool design and CNC manufacturing. Management envisions scaling operations four to five times through automation, distributorship networks, and product diversification. Long-term targets include entry into international markets and strengthening the TIXNA brand globally. Planned capex and expansion will be funded through IPO proceeds and internal accruals, ensuring minimal debt dependence.

Industry Overview

India’s cutting tools industry is integral to the manufacturing ecosystem, serving sectors such as automotive, aerospace, construction, railways, and engineering.

• Global cutting tools market: Valued at USD 77.24 billion in 2019, projected to reach USD 101.48 billion by 2027 (CAGR 4.2%).
• Asia-Pacific market size: USD 37.31 billion in 2021, rising to USD 38.63 billion in 2022, holding 50% of global CNC machinery share.
• Indian cutting tools market: Approximately 1,000 manufacturers, contributing 45% of domestic production, supported by ‘Make in India’ and China+1 policy.
• India’s machine tools market: Valued at USD 1.5 billion in 2023, expected to reach USD 3.2 billion by 2032 (CAGR 8.2%).
  The industry’s growth is driven by industrial automation, CNC adoption, EV manufacturing, and defense infrastructure expansion.

Major Risk Factors

1. High Working Capital Needs: The company’s operations require significant inventory and receivable funding, impacting liquidity if delayed.
2. Capacity Utilization Risk: Operating at 90–92% utilization leaves limited buffer for sudden demand surges.
3. Dependence on Domestic Market: Limited export exposure may restrict diversification in case of domestic slowdown.
4. Competition and Price Pressure: Intense competition from unorganized and Chinese players could affect margins.
5. Raw Material Volatility: Fluctuations in carbide prices and import dependency may affect production costs.
6. Technology Risk: Continuous innovation is essential; failure to upgrade machinery can reduce competitiveness.
7. Economic and Policy Changes: Adverse economic cycles or changes in import/export policies may impact demand and margins.

Key Strengths and Opportunities

1. High Operational Efficiency: Over 90% capacity utilization and use of advanced CNC and Zoller inspection systems ensure consistent quality.
2. Customized Product Expertise: Around 73% revenue from customized tools, providing higher margins and customer stickiness.
3. Strong Client and Supplier Network: Long-term relationships enable stable raw material supply and recurring orders.
4. Skilled Workforce and Leadership: Experienced management and trained technicians support precision manufacturing and innovation.
5. Expansion Potential: Existing infrastructure can support 4–5x production increase without major structural changes.
6. Government Policy Support: Initiatives like ‘Make in India’, ‘PLI Scheme’, and China+1 strategy open export opportunities.
7. Sustainability Advantage: Rooftop solar and reconditioning services align with global ESG and cost-saving trends, attracting green-conscious clients.