In today’s evolving market, industries such as renewable energy, infrastructure development, and global logistics are rapidly evolving. With governments and businesses alike prioritizing sustainability and efficiency, companies that can navigate multiple sectors stand to gain major advantages. Apollo Green Energy is one such company, integrating engineering projects, exports, and logistics into a single, cohesive enterprise. By doing so, the company not only spreads its risk across various segments but also capitalizes on emerging market opportunities, all while contributing to a greener, more sustainable future.
The company is preparing for its initial public offering (IPO), a move that is expected to further strengthen its financial base and accelerate expansion. As investors continue to monitor the share prices of [View Current Market Price of Apollo Green Unlisted Share], the IPO is anticipated to unlock value, paving the way for the renewable company to build a project portfolio worth ₹10,000 crores by 2025. This bold initiative aligns perfectly with India’s ambitious renewable energy targets, with current installed renewable capacity of around 154 GW, the government aims to expand this to 500 GW by 2030!
AGEL’s revenue is bifurcated into four major segments. Each segment plays a unique role in the company’s overall business model and contributes a specific percentage to the total revenue:
The Engineering, Procurement, and Construction (EPC) segment constitutes the largest revenue stream for AGEL, accounting for 50.74% of its total revenue. This category primarily encompasses project supplies and services related to renewable energy infrastructure, where it has established itself as an industry leader.
At its core, AGEL specializes in designing, procuring, and constructing large-scale renewable energy projects. These projects play a crucial role in transitioning to sustainable energy solutions. Below are the major focus areas within this segment:
In addition to renewable energy, the Project Supplies and Services category includes a wide array of traditional infrastructure projects:
Marine Container Services is another vital segment within Apollo Green Energy that focuses on the intricate world of shipping and logistics. This division provides a full spectrum of services related to the management of marine containers, including storage, handling, loading, unloading, warehousing, transporting, and even repairing these containers. In practical terms, think of marine container services as the logistical framework that keeps international trade moving smoothly. The division also develops and operates container freight stations (CFS), which serve as hubs for the efficient handling and management of shipping containers.
The comprehensive nature of marine container services illustrates Apollo Green Energy’s capability to integrate multiple facets of the shipping industry, thereby providing end-to-end solutions that support global commerce.
The Traded Goods segment is centered on the buying and selling of products that support AGEL’s diversified operations. This revenue stream includes items that are traded both domestically and internationally.
Tyre Tech Global Division
Automotive Essentials: This part of the business focuses on the export and domestic sale of tyres, tubes, and flaps. In everyday terms, think of tyres as the “shoes” for vehicles—essential for safe and smooth travel.
Supply Chain Management: The division is supported by robust supply chain practices that ensure efficient production, inventory management, and distribution, contributing significantly to AGEL’s overall revenue.
Commodities Trading
Raw Materials and Agricultural Produce: This subdivision involves the trade of various commodities such as fabrics and agricultural products. AGEL procures these raw materials and trades them in both domestic and international markets.
Revenue Impact: Although commodities trading represents a smaller share of the total revenue compared to EPC activities, it adds an important diversification element that helps stabilize income during periods when other segments may be under pressure.
The Finished Goods segment relates to products that are fully manufactured and ready for sale. For AGEL, this segment is largely associated with its fashion division.
Tag Fashion Division
Fashion and Apparel: The Tag Fashion Division is responsible for manufacturing and exporting leather garments, accessories, footwear, and textiles. In June 2024, this division was transferred to Apollo Fashion International Limited.
Quality and Design: The division leverages modern design techniques combined with traditional craftsmanship to create products that appeal to international markets. The finished goods segment, though representing a smaller portion of revenue, is crucial for diversifying AGEL’s portfolio.
Export Benefits account for a modest portion of AGEL’s total revenue, but they play an important strategic role.
Financial Incentives: Export benefits include tax rebates, government-supported incentives, and financial support schemes that help lower production costs. In simple terms, these benefits act like bonuses that the government provides for selling products internationally.
Strategic Importance: Although this category contributes only 0.71% of the total revenue, it underscores AGEL’s commitment to expanding its international footprint. These benefits help improve profit margins and support the company’s broader growth objectives.
By serving markets in Africa, Europe, the Middle East, and beyond, the company mitigates the risks associated with relying on a single economic region. This diversified approach means that if one region experiences an economic downturn, other regions can help offset the impact, ensuring overall financial stability. This strategic outreach not only broadens the company’s customer base but also opens up opportunities for capturing emerging trends in international markets.
In an era where efficiency is paramount, logistical optimization plays a pivotal role in driving Apollo Green Energy’s growth. This driver focuses on improving every aspect of the supply chain, from the efficient handling of cargo at container freight stations to the seamless integration of multimodal transportation solutions. Logistical optimization involves streamlining operations to reduce transit times, minimize costs, and enhance overall service quality.
The ability to adapt products and services to meet local market needs is another crucial growth driver for Apollo Green Energy. Localisation involves tailoring offerings to suit regional tastes, cultural nuances, and specific customer demands. By adapting its products and services, the company not only enhances its competitiveness but also builds stronger customer relationships and loyalty in diverse markets. Whether it’s through the design of leather garments in the Tag Fashion Division or the specification of engineering equipment in the Infrastructure segment, localisation ensures that the company’s offerings are relevant and appealing to local consumers.
Export benefits have become an integral part of Apollo Green Energy’s growth strategy. These benefits include government-supported incentives, tax rebates, and financial support that make exporting products more attractive and financially viable. In simple terms, export benefits are like getting a bonus from the government for selling your products internationally. These incentives help reduce the overall cost of production and improve profit margins, thereby enabling the company to reinvest in technology, research, and further expansion.
The integrated business model is further strengthened by the performance of its subsidiaries, both in India and overseas. Enhanced subsidiary performance and operational synergies refer to the way different divisions of the company work together to produce results that are greater than the sum of their parts. The company ensures that each subsidiary, such as Apollo Lycos Netcommerce Limited and Apollo Pro X Limited, operates at peak efficiency. The synergies created between these subsidiaries and the core business segments drive operational excellence, reduce redundant costs, and pave the way for strategic growth initiatives that support long-term vision.
The revenue from operations increased from approximately ₹753.40 crores in 2023 to about ₹1,234.27 crores in 2024. This represents a 64% rise, driven by expansion in operational activities such as increased sales volumes, new projects, and enhanced service delivery.
Similarly, profit after tax grew from around ₹24.71 crores in 2023 to roughly ₹38.59 crores in 2024, reflecting improved profitability across the company. Meanwhile, finance costs doubled, from ₹23.92 crores in 2023 to about ₹53.08 crores in 2024, likely due to higher borrowing levels and exposure.
In 2024, current borrowings stood at about ₹29.90 crores and non-current borrowings at ₹133.14 crores. For context, total borrowings in 2023 were around ₹198.65 crores. Additionally, during the year, a loan of approximately ₹83.00 crores was secured from 360 One Prime Limited, reflecting a mix of short-term and long-term financial obligations.
Apollo Green Energy’s comprehensive approach to business, characterized by diversified operations, strategic growth drivers, and a strong financial foundation, provides a compelling roadmap to sustainability. The company’s ability to integrate multiple industrial segments while maintaining operational excellence and financial prudence makes it a noteworthy player in the evolving landscape of sustainable energy and industrial innovation, offering a rich narrative.
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