STOCK IDEASAIA Engineering – among the leaders in
High Chrome Mill internalsCompany Background
AIA Engineering (AIAE)
specializes in design,
development, manufacture,
installation and servicing of
high chromium wear,
corrosion and abrasion
resistant castings used in the
cement, mining and thermal
power generation industries.
AIAE is one of the global
leaders in manufacturing
value-added, impact abrasion
and corrosion resistant High
Chrome Mill Internals (HCMI).
It offers products like grinding
media, liners, diaphragms and
vertical mill parts (collectively
referred to as mill internals)
which find applications in
grinding and crushing
operations.
Investment Rationale
Incremental volumes to aid revenue
growth over FY19-21E
For FY19, sales volumes grew
15.9% to 265174 MT in which
mining segment volumes
grew 23% to 170224 MT. AIA
will continue to focus on the
replacement mining market
estimated at around 3 MTPA
with penetration of high
chrome consumable still very
low (15-20%).Mining segment
is expected to rebound with
incremental volume sales
estimated to be in the range of
3 5000 to 40000 MTPA from
FY20E onwards.Substantial capex, strategic
developments to benefit...AIA has done capex of | 206
crore and is likely to do capex
of over | 600 crore in FY20-21E
towards grinding media, mill
liners capacity expansion.
Commissioning of eight wind
turbines of 2.1 MW each has
been completed. AIA has
planned a capex of | 250 crore
towards building dedicated
plant for mining mill
optimisation products for
EEMS collaboration. Grinding
media capacity is going to
increase from present 340000
TPA to 440000 TPA by