KRN Heat Exchanger and Refrigeration Limited (BSE: 544263, NSE: KRN) announced a significant milestone in its expansion strategy. The company's wholly-owned subsidiary, KRN HVAC Products Pvt. Ltd., has successfully initiated commercial production and operations of its Bus AC Division at its manufacturing facility in Neemrana, Rajasthan.

Key Highlights

• Commencement Date: October 15, 2025
• Location: Plot No. SP1-24, RIICO Industrial Area, Kolila Joga, Neemrana, Alwar, Rajasthan
• Production Focus: Heat Exchangers and HVAC Products

Strategic Expansion

This development marks a crucial step in KRN Heat Exchanger's growth trajectory, diversifying its product portfolio and strengthening its position in the HVAC sector. The new facility is expected to enhance the company's capabilities in manufacturing bus air conditioning systems, potentially opening up new market opportunities in the commercial vehicle segment.

Management Statement

Santosh Kumar Yadav, Chairman & Managing Director of KRN Heat Exchanger and Refrigeration Limited, confirmed the commencement of operations through an official filing with the stock exchanges. The company views this expansion as a strategic move to capitalize on the growing demand for HVAC solutions in the transportation sector.

Market Implications

The launch of the Bus AC Division could potentially impact KRN Heat Exchanger's market position:

Investors and market analysts will likely monitor the performance of this new division closely, as it could contribute to the company's future growth and profitability.

Conclusion

The commencement of the Bus AC Division by KRN HVAC Products Pvt. Ltd. represents a significant step for KRN Heat Exchanger and Refrigeration Limited. As the subsidiary begins its operations in this new segment, stakeholders will be keen to observe its impact on the company's overall performance and market standing in the coming quarters.

KRN Heat Exchanger and Refrigeration has announced a strategic move to broaden its product portfolio in the transport and mobility cooling segment. The company is set to acquire the bus air-conditioning division of Sphere Refrigeration Systems through its wholly-owned subsidiary, KRN HVAC Products.

Acquisition Details

The acquisition will be executed through a Business Transfer Agreement, under which KRN HVAC will take over:

• All operations
• Assets
• Employees of the bus air-conditioning business

This move aligns with KRN's strategy to build a diversified HVAC (Heating, Ventilation, and Air Conditioning) business across industrial, commercial, and mobility applications.

Strategic Implications

Santosh Kumar, Chairman and Managing Director of KRN Heat Exchanger and Refrigeration, highlighted the significance of this acquisition:

• Strengthens the company's presence in the automotive HVAC segment
• Supports the goal of becoming a complete solutions provider in the HVAC industry

Market Response

The market's initial reaction to this news was slightly negative:

This acquisition represents a significant step for KRN Heat Exchanger and Refrigeration in expanding its product offerings and market presence in the transport cooling sector. The move could potentially open up new revenue streams and strengthen the company's position in the competitive HVAC market.

Investors and industry observers will likely be watching closely to see how this acquisition impacts KRN's financial performance and market share in the coming quarters.