Saturday, July 24, 2010


Company Background: GEI Industrial systems (GIS) was founded in 1970 with its manufacturing facility located in Bhopal (Madhya Pradesh). The company was incorporated as General Engineering Industries. Later on in 1993 the company was converted in to a joint stock company. In 1997-98 Hammon industries, France bought a 30% stake in the company (29.95 lakh shares) and hence the name of the company was changed to GEI Hammon Industries. Hammon sold 25 Lakh shares in August 2008, post disagreements between the two parties. It
continues to hold on 4.95 Lakh shares in GIS. Initially the company was formed as an ancillary unit of BHEL (Bharat Heavy Electricals Limited). GIS is one of the leading players in the heat transfer industry (cooling media) and primarily caters to the requirements of the energy sector i.e. oil & gas sector and power sector.

Share holding Pattern:
The promoters stake as of June 2010 stands at 41.4%, which has been steady since the past four quarters. The total Non- promoters (institutional) stake has gradually increased to 8.1% as of June 2010 from 6.13% in June 2009. The following table depicts the changes in the share holding structure of the company.

Amongst the institutional shareholders Banyan tree Growth capital LLC owns 8.72% stake in the company (allotted in August 2009 at Rs 75 per share), while the Compagnie Financiere Hamon owns 2.98% stake, PCA India infrastructure Equity open fund Ltd holds 5.25% stake and Premier investment fund holds 2.08% stake in the company.

Business and Operations:
GIS is one of the leading players in the heat transfer industry (cooling media). It manufactures various types of heat exchangers. The company has two manufacturing plants based in Bhopal. The two key products from the company are Air cooled heat exchangers (ACHE) and Air Cooled Steam Condensers (ACSC), which are used in the Oil & Gas companies and power plants respectively. GIS undertakes design, manufacture, fabrication, erection, commissioning and maintenance of the heat exchangers and condensers. The following charts show the products manufactured by the company and their respective applications.

To see chart and full report: GEI INDUSTRIAL SYSTEMS