Observations from the Conference Key Participants and Developments Despite the subdued atmosphere, a few major industry players stood out: Understanding the Semiconductor Assembly Process A typical semiconductor assembly process involves multiple steps, starting from wafer production in a fabrication facility (FAB) and ending with the final packaged chip: Wafer from FAB → Stealth Dicing → Thinning → Die Lamination → Wire Bonding → Encapsulation → Solder Ball Attachment → Final Packaging At present, India is primarily focused on OSAT, handling the later stages of this process. However, efforts are underway to move up the value chain. Major Developments in India’s Semiconductor Industry Tata Electronics: Building India’s First FAB Micron India: Facing Delays, But Moving Forward Kaynes Semicon: Expanding OSAT Capabilities Our View India’s semiconductor journey is currently focused on integrating into the global supply chain as an OSAT hub. However, the long-term vision is to establish a strong domestic fabrication ecosystem. While the government is committed to this sector, execution will take significant time, and building a robust ecosystem will be a slow process. Investors should remain cautious when companies announce grand plans in the semiconductor sector. While the ambitions are high, the execution challenges are substantial. Many of these capabilities being built today will remain low on the value chain for the foreseeable future. The transition from buzzwords to actual production will be long and complex. Until then, the Indian semiconductor sector remains a work in progress. ‍

India’s agricultural backbone is undergoing a structural shift — not just in how crops are grown, but in how farmlands are powered. With over 14 crore farmers in India and only 3 crore currently having access to pump infrastructure, the gap is glaring. Among these, only 10,000 pumps are solarized. The rest rely on diesel or electricity — both of which are costly and inefficient over time. This is where the PM KUSUM scheme steps in — a government-backed solar pump initiative that’s proving to be one of India’s most promising rural energy transformations. The estimated opportunity size for the solar pump and services sector? A staggering ₹12.9 trillion, with pumps making up just 15% of that total. This is not just a green energy trend — it’s a multi-year structural growth story grounded in real demand, cost savings, and long-term policy commitment. The Economic Case for Solar Pumps What makes this megatrend so compelling isn’t just the market size — it’s the logic behind it. For governments, subsidizing electricity for farmers through DISCOMs has been a decades-long fiscal drag. Setting up grid infrastructure for electric pumps costs nearly ₹2 lakh per farmer, plus an additional ₹1 lakh annually in electricity. In contrast, a ₹4.5 lakh solar pump requires the government to pay only about ₹3.5 lakh after the farmer’s contribution — and recovers its cost within three years due to energy savings. For farmers, switching to solar means no recurring electricity or diesel bills. They save nearly ₹50,000 annually while gaining reliability and autonomy. Even surplus energy, when not used for irrigation, can be routed back to the grid — with players like Shakti Pumps owning patents to enable this energy sell-back feature. Shakti Pumps: Positioned for Scale Shakti Pumps, one of the key players in the sector, validated the megatrend during its Q1FY25 earnings call. Despite a rain-hit quarter and upcoming elections in major states, the company posted a 30% revenue growth on a ₹1,371 crore base and guided for ₹500 crore in quarterly revenues. Over the next 3–4 years, they expect 25–30% growth annually. Margins have also improved due to multiple levers: advance raw material planning, better solar panel negotiations, and vendor-side efficiencies. Even under conservative pricing scenarios, the company expects to maintain a 16% margin floor — thanks to softening panel prices and improved operating leverage. Importantly, Shakti is not just sitting on strong financials — it’s executing. The company’s current capacity supports ₹2,400 crore in annual revenue, but by FY27, it will double pump production from 5 lakh to 10 lakh units. This will enable potential topline of ₹5,000 crore in coming years. The capex of ₹250 crore is already 80% funded, with no banking debt involved. Part of this will also fund its new EV motor project for 2W, 3W, and bus segments. Oswal Pumps: Sector Confidence Reinforced Oswal Pumps, another major player in the space, addressed key industry concerns in a recent analyst meet. The biggest was whether pricing pressure would reduce margins as new players enter the market. The management made it clear: that won’t happen. Here’s why — 90% of the industry comprises EPC players with thin profitability (5–6% PAT). Only two to three companies are fully backward integrated. If anyone tries to lower prices, the rest won’t survive. At the same time, demand is too large for 2–3 players to cater to alone. So, price undercutting is simply unsustainable. The second concern was whether welfare schemes like Laadki Behen would delay payments or disrupt KUSUM execution. Oswal’s answer was firm — no. Solar pumps remain a high-return investment for the government, with savings reaching nearly ₹10 lakh per pump over its lifespan. Free electricity schemes may win headlines, but they don’t replace long-term cost logic. Finally, Oswal emphasized that payment cycles are improving. The government is aware that faster vendor payments translate to quicker execution — a win-win as it races to complete KUSUM 1 targets by FY26 and scale up for KUSUM 2. KUSUM 2 and the Road Ahead As of mid-2025, 7 lakh solar pumps are still pending under KUSUM 1. The government aims to complete this by FY26. Planning for KUSUM 2 is already underway, with 2 million pump installations targeted for FY27. Notably, Components B and C — which enable feeder-level solarisation — are expected to merge, creating deeper opportunities for infrastructure-led revenue streams. Pilot projects under Component C, like the Ajmer feeder solarisation (₹150 crore, 300 pumps), are already being executed. Once validated, these models could unlock significant growth for players with on-ground presence and execution capabilities. Who Stands to Win? In a market of this scale, not every player will benefit equally. Caprize believes the winning combination includes: Likely leaders in this space: These companies have either the manufacturing control, the brand equity at the farm level, or the dealer networks to scale with minimal friction. Caprize View: A Structural Story, Not a Cyclical One The solar pump opportunity is not a “next-quarter” story — it’s a 4–5 year megatrend driven by fiscal logic, environmental priorities, and political continuity. From pump installation to energy resale, EV diversification to patented control tech — this space is rapidly becoming a hub of innovation and value creation. At Caprize, we believe themes like these — rural-first, policy-backed, and margin-disciplined — deserve serious attention from long-term investors.

On the morning of its stock market debut, Sambhv Steel Tubes stood tall. Not just as a newly listed entity on the NSE, but as a symbol of what sharp execution, operational discipline, and belief in India’s manufacturing potential can deliver. Sab Sambhv Hai was not just a tagline. It became a lived conviction. From Vision to Reality In a short span, Sambhv achieved what many considered improbable. It built one of India’s largest single-location integrated pipe manufacturing plants. It adopted and stabilized narrow-width HR coil technology, something rarely mastered in the domestic market. It migrated seamlessly across product types, from ERW pipes to galvanized pipes and stainless steel pipes. Even more impressively, it maintained a unique market position with costs comparable to low-grade players while delivering product quality that competes with the best in the industry. In July 2025, Sambhv listed on the National Stock Exchange. It marked a defining milestone not only for the company but also for India’s industrial growth story. Caprize and Sambhv: The Pre-IPO Bet In December 2023, Caprize invested in Sambhv’s first and only pre-IPO round at ₹37.5 per share. Less than 18 months later, that investment delivered a 3x return. This outcome validated Sambhv’s execution and Caprize’s investment philosophy. We believe in backing scalable businesses led by credible promoters. Sambhv fit that framework well, and the result reinforced why conviction matters when paired with operational clarity and governance focus. Key Lessons from the Journey Sambhv’s IPO journey offered valuable insights into what it takes to build and scale a company that is both market-ready and fundamentally strong. 1. Operational discipline is essential Plant design, production scheduling, capacity ramp-up — consistency in execution builds long-term credibility. 2. Governance and compliance shape outcomes Structures must be built early. Timely filings, robust board processes, and audit discipline matter more than ever. 3. Financial reporting must meet global standards IPO readiness demands detailed, clean, and timely financial documentation. Numbers must tell a story that institutional investors can trust. 4. Preparation takes longer than expected Even with strong internal systems, legal and regulatory preparation for listing is intensive. Internal timelines must stay aggressive, but public messaging should remain realistic. 5. Leadership maturity gets tested As a company transitions from private to public, promoter-founders must shift from instinctive decision-making to process-driven leadership. 6. Clarity and integrity outperform style Stakeholder communication becomes critical. Transparency and consistency build trust faster than optics. 7. Performance metrics must stay front and center Metrics such as raw material sourcing efficiency, capacity utilization, return on capital employed, and working capital discipline are fundamental to long-term valuation. 8. Working capital efficiency creates value Sambhv’s focus on managing working capital effectively improved its balance sheet and strengthened its IPO readiness. 9. Teams drive execution A successful IPO is not just the result of good products or visionary promoters. It is the outcome of strong, aligned teams across plants, finance, compliance, advisors, and investors. Looking Ahead The IPO marks a significant milestone, but Sambhv’s growth story is still unfolding. With ongoing capacity expansion, product diversification, and strong demand driven by India’s infrastructure cycle, the company is well-positioned to scale further. Caprize remains committed to supporting Sambhv beyond the IPO phase. We view this as a long-term partnership built on shared conviction, continuous improvement, and deep sector alignment. Final Word Sambhv’s story is proof that when ambition is matched with execution, the outcome is not just a strong listing but a business that earns the trust of every stakeholder. This is not just about valuation. It is about value creation — powered by vision, discipline, and people. Sab Sambhv Hai. And this is just the beginning.