Powerica IPO Review

Powerica Ltd. (PL) is an integrated power solutions provider specializing in diesel generator sets (“DG sets”), for both primary and standby applications. As one of the original equipment manufacturers (“OEMs”) for Cummins India Limited (“Cummins India”, along with its affiliates, “Cummins”), it has maintained a relationship with them for over four decades.

PL commenced its DG sets business in 1984, and subsequently expanded generator set portfolio to include medium speed large generators (“MSLG”) in 1996. The company continues to develop this segment through a collaboration with HD Hyundai Heavy Industries Co., Limited (“Hyundai”), on a non-exclusive basis. By integrating its DG set and MSLG offerings, it provides a comprehensive range of generator sets with capacities ranging from 7.5 kVA to 10,000 kVA, designed to meet the distinctive requirements of diverse industries and applications. As of the date of this Red Herring Prospectus, its generator set business comprises of DG sets powered by Cummins engines, MSLG offerings in collaboration with Hyundai, and certain allied business activities (“Generator Set Business”).Building on its experience in the Generator Set Business, the company entered the wind power sector in 2008 as an independent power producer (“IPP”). Subsequently, it developed capabilities as an engineering, procurement and construction (“EPC”) contractor as well as an operation and maintenance (“O&M”) service provider for balance of plant (“BoP”). As of the date of this Red Herring Prospectus, its operations in the wind power sector includes developing and operating IPP projects as well as undertaking EPC and O&M activities for BoP primarily within the wind power industry (“Wind Power Business”).

PL manufactures DG sets along with auxiliary items, including acoustic enclosures, fuel and exhaust systems, and customized control panel systems. Its offering comprises of comprehensive high speed generator solutions, powered by Cummins engines, covering the design, marketing, manufacturing, testing, supply, installing, and commissioning of DG sets ranging from 7.5 kVA to 3,750 kVA. According to the F&S Report, based on capacity, DG sets are broadly classified as low horse power with a range of 7.5 kVA to 160 kVA (“LHP”), medium horse power with a range of 180 kVA to 500 kVA (“MHP”) and high horse power with a range above 500 kVA (“HHP”).Since inception in 1984, the company has formed a long standing relationship with Cummins, as one of their OEMs. The engines and alternators for its DG sets are sourced directly from Cummins. It has entered into a non-exclusive general supply agreement dated June 11, 2025 (“General Supply Agreement”),

with Cummins India. According to the F&S Report, in Fiscal 2025, Cummins India was one of the leading engine manufacturers in both, the MHP and HHP ranges of DG sets in India. It also collaborates with Cummins on the integration and testing of diesel generator products, ensuring alignment with evolving technological, regulatory, environmental and emission standards. PL operates in-house manufacturing facilities to maintain direct control over processes, costs, and timelines. As of the date of this Red Herring Prospectus, the company owns and operates three manufacturing facilities located in Bengaluru, Karnataka; Silvassa, Dadra and Nagar Haveli; and Khopoli, Maharashtra. Its captive manufacturing approach enables it to optimize inventory, uphold quality assurance standards, and manage supply chain costs and delivery timelines. This structure also enhances its responsiveness to changing customer needs and facilitates faster time-to-market. Its extensive sales network supports effective customer engagement and market penetration.