KRN Heat Exchanger and Refrigeration Ltd.KRN₹861.30 +4.12%

KRN Heat Exchanger and Refrigeration Ltd., a key manufacturer and exporter of heat exchangers and coils, announced a significant move to expand its business portfolio. Its wholly-owned subsidiary, KRN HVAC Products Private Limited, has signed a Business Transfer Agreement (BTA) with Sphere Refrigeration Systems Private Limited (SRSPL) to acquire its entire Bus Air-Conditioning division.

This strategic acquisition is a major stride in KRN’s long-term growth roadmap, immediately bolstering its presence in the automotive HVAC segment. Under the BTA, KRN HVAC will take over all operations, assets, and employees of the division. 

Strategic Rationale for Diversified Growth

The acquisition is a key component of KRN’s strategy to build a diversified HVAC business catering to a wide range of industrial, commercial, and mobility applications. The Bus Air-Conditioning segment has been identified as a significant growth opportunity, driven by a rising domestic demand for:

  • Passenger Comfort: Increasing public and private investment in comfortable mass transit.
  • Energy Efficiency: Focus on sustainable and energy-optimized cooling technologies.
  • Modernization: India’s rapidly modernizing transportation sector.

By combining SRSPL’s proven expertise in bus climate control systems with KRN’s robust manufacturing capabilities and engineering know-how in heat exchangers, the company aims to realize strong synergies in design, production, and distribution.

The deal is not just an asset transfer but an integration of valuable human capital and domain expertise. The leadership of Sphere Refrigeration Systems, built by three industry veterans, will now be part of the KRN ecosystem.

About KRN Heat Exchangers

Founded in 2017 in Neemrana, India, KRN Heat Exchanger and Refrigeration Limited is a specialist manufacturer of aluminium and copper fin and tube heat exchangers, used widely by OEMs in the HVAC&R industry. Operating a 1,50,000 square feet facility, the company produces over 1 million units annually. KRN reported strong financial results in FY25, with a consolidated total income of ₹ 441.71 crores, EBITDA of ₹ 70.51 crores, and a Net Profit of ₹ 52.88 crores.

Since listing, this stock has delivered returns of more than 290%.

Note: The stock prices mentioned are as of 12:25 pm.

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