J Pan Tubular Components IPO

The Indian tubing components and fittings market grew from ₹14,490 crore in FY21 to ₹20,220 crore in FY26, recording a CAGR of 6.9%. The copper and brass tubing and fittings market is projected to reach ₹27,010 crore by FY30, growing at an estimated CAGR of 7.5%.  

Copper tubing and fittings dominate the market with a 71% share, followed by brass at 20% and aluminium at 9%. Copper's use in applications requiring thermal conductivity and corrosion resistance supports its leading position.  

HVAC applications account for around 65% of the market, valued at approximately ₹12,230 crore. Automotive contributes 15%, refrigeration and cold chain 12%, while other applications account for the remaining 8%.  

Rising urbanisation and increasing focus on energy-efficient cooling systems are supporting demand for high-quality, leak-resistant tubing and components. The Bureau of Energy Efficiency's Standards & Labelling Scheme is also encouraging the adoption of more efficient cooling equipment.  

Expansion in the automotive industry is expected to increase demand for precision tubing and components. The growing adoption of electric vehicles is also creating applications for tubing in battery thermal management and cooling systems.  

Exports of tubing components and fittings reached around ₹1,048.93 crore in FY26, with markets such as the US, Canada and Saudi Arabia emerging as key destinations. India's Foreign Trade Policy 2023 also supports efforts to expand exports.  

Initiatives such as the PLI Scheme for White Goods, which supports domestic manufacturing of air-conditioner components, and the PLI Scheme for Specialty Steel are encouraging localisation and domestic value addition.  

The tubing and fittings industry is gradually moving towards organised manufacturing, integrated assemblies, and value-added products. This shift is creating opportunities for manufacturers with precision manufacturing and customised product capabilities.  

The industry remains exposed to fluctuations in copper, brass and aluminium prices, cyclical OEM demand, and changing procurement schedules. Manufacturers also face the need to invest in modern production technologies to remain competitive.  

J Pan Tubular Components had an estimated 2.31% market share in FY26, based on revenue of approximately ₹468.09 crore, indicating its presence within a fragmented and growing market. 

J Pan Tubular Components supplies components to leading companies such as LG Electronics, Haier Appliances, Daikin Airconditioning India and Bosch Home Comfort India. These established customer relationships can create entry barriers for new suppliers.  

The company has in-house capabilities for brass manufacturing, casting and extrusion, allowing it to convert brass alloys into billets, forged parts and precision-machined components. This helps the company manage supply, quality, and raw material requirements.  

J Pan operates facilities across Maharashtra, Uttar Pradesh, Rajasthan, Karnataka, and Gujarat. Their locations near major OEM manufacturing hubs can help reduce transportation costs and support timely deliveries.  

The company's facilities use automated and precision manufacturing equipment, including CNC bending and 5-axis brazing machines.  

The promoter family has more than four decades of experience in the tubular components industry. The company has also developed products through in-house R&D, including one granted patent and four pending joint patent applications.  

J Pan plans to use IPO proceeds for the expansion of its Sanand facility in Gujarat and for setting up a new manufacturing facility at Sri City, Andhra Pradesh. These investments are intended to increase manufacturing capacity and expand its presence in southern India.  

The company plans to diversify products such as 2-way and 3-way air-conditioner service valves and AC copper tubing assemblies, which can broaden its product portfolio.  

The government's PLI Scheme for White Goods is encouraging air-conditioner and refrigerator manufacturers to source more components domestically. This can create additional opportunities for Indian component manufacturers such as J Pan. 

Growing electric vehicle adoption is creating demand for precision tubing used in battery thermal management, coolant lines, and HVAC systems. This provides an opportunity for J Pan to expand its automotive applications.  

The company started exports in 2023 and can benefit from global manufacturers diversifying their supply chains beyond China. India's manufacturing capabilities and cost advantages could support further export opportunities. 

J Pan depends heavily on a small group of customers. Its top 5 customers contributed 84.09% of revenue from operations in FY26, while the top 10 accounted for 96.60%. Daikin Airconditioning alone contributed 33.40%, followed by LG Electronics at 16.78% and Haier Appliances at 14.69%. A reduction in orders from any major customer could materially affect revenue and cash flows.  

The company primarily receives orders through purchase orders and does not have long-term supply agreements with customers. This limits revenue visibility and exposes the business to order cancellations, lower volumes and pricing changes.  

HVAC components accounted for 77.84% of revenue in FY26, making the company highly dependent on the air-conditioning industry. Changes in demand, seasonality or a slowdown in the HVAC market could affect its financial performance.  

More than 70% of domestic revenue on average comes from Maharashtra, Rajasthan and Uttar Pradesh. Regional economic disruptions, policy changes or other local events could affect operations and sales.  

Copper, brass, steel and aluminium are key raw materials for the company. The cost of goods sold accounted for 82.84% of total expenses in FY26. Any increase in metal prices that cannot be fully passed on to customers could put pressure on margins.  

The top 10 suppliers accounted for 71.75% of total purchases in FY26. Supply disruptions or delays from key vendors could affect production and delivery schedules.  

The company imports raw materials from countries including South Korea, Vietnam, Thailand, China and Japan. Changes in foreign exchange rates can increase the cost of imported materials.  

The company plans to use IPO proceeds to expand its Sanand facility and establish a new facility at Sri City. However, it has not entered into definitive agreements with vendors for machinery or construction work. Delays, higher equipment costs or execution issues could increase project costs and postpone capacity expansion.  

J Pan faces competition from established domestic companies as well as low-cost imports from China, Vietnam, Thailand and other ASEAN countries. Pricing pressure could affect its market share and profitability.  

The company supplies components to major OEMs that follow strict quality standards and audits. Product rejections, order cancellations or warranty claims could affect its revenue and reputation.  

Manufacturing operations rely significantly on contract workers. Labour shortages, higher wages or work stoppages could disrupt production and increase operating costs.  

Global conflicts and shipping disruptions can increase freight, insurance and transportation costs while extending delivery timelines. Higher crude oil prices could also raise domestic logistics expenses. 

J Pan Tubular Components IPO DRHP 

Hem Securities Limited 

Contact Number: +91 86575 78989/80692 19065/80692 19060 

Email Address: ipo@bigshareonline.com