KRN Heat Exchanger and Refrigeration Ltd is Awarded ₹1.42 Billion PLI Incentive, Laying the Foundation for Major Expansion and Leadership in the Market

Unknown Apr 02, 2026 3 Views

KRN Heat Exchanger and Refrigeration Ltd has received ₹1.42 billion in incentives under the Production Linked Incentive (PLI) scheme of the government for white goods, a landmark achievement in the company's growth story. The incentive, a part of a larger government effort to promote domestic manufacturing and exports, will support KRN's aggressive expansion plans and enhance its position as a top supplier to Indian and international OEMs.

Significant PLI Incentive Worth ₹1.42 Bln Reserved:

KRN Heat Exchanger and Refrigeration Ltd received ₹1.42 billion of incentives under the PLI program, making it part of 24 companies shortlisted in the third round for white goods such as air conditioners and LED lighting. It is meant to promote local manufacturing, lower imports, and increase export competitiveness.

Investment and Expansion Plans:

The firm has invested ₹140 crore under new investments under the PLI scheme with a significant concentration in its Neemrana, Rajasthan manufacturing capacity expansion. Its new facility, which will commence commercial production by Q1 FY27, will double KRN's operational scale six times and unlock revenue potential of up to ₹2,000 crore-six times FY24 revenue.

Strategic Advantages and Incentives:

The expansion will take advantage of several government incentives:

15% corporate tax rate for the new subsidiary (lower than the standard 25%)
Exemptions on electricity duty and land tax for seven years
5% interest subsidy on loans
Rajasthan’s 1.6% revenue incentive for 10 years
An 8 MW solar power setup to reduce energy costs

Market Impact and Performance:

The PLI award sent KRN's stock price climbing 5.4%, signaling investor confidence about growth in the future. Revenues of the company increased by 16.4% to ₹186.9 crore during H1 FY25, and net profit by 24.6% to ₹242.8 crore. The client base of KRN features marquee customers such as Daikin India, Schneider Electric, and Blue Star, while exports comprise 15% of revenue and data center cooling being a growing segment.

Industry and Economic Context

The white goods PLI scheme has seen ₹3,516 crore in committed investments from 24 firms in its third round alone with a likely production output of ₹1.72 lakh crore during the scheme's period. The schemes are part of the country's larger play to become a global manufacturing destination for cooling and energy-efficient technologies.

Insight

KRN Heat Exchanger and Refrigeration's PLI incentive win is a winner, allowing the company to grow operations quickly, invest in new-age technology, and capture fresh export markets. With strong government backing, a planned expansion strategy, and a strong order pipeline, KRN is ready to experience rapid growth and can potentially emerge as a big player in the global heat exchanger and refrigeration industry very soon.

Source: Economic Times, Business Upturn, Equentis

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