₹34.20 Crore Net Profit in Three Years
Record Profit of ₹23.33 Crore in 2025-26 Alone
From the Brink of Closure to Becoming a National-Level Enterprise
New Momentum with Singareni Management and State Government Support
Expansion Initiatives with the Special Initiative of
Deputy Chief Minister Sri Bhatti Vikramarka
HYDERABAD, SEPTEMBER 21, 2026: Nearly three decades ago, the company was burdened with accumulated losses to the tune of ₹21 crore and was on the verge of closure. Today, it has accumulated profits of ₹60.85 crore. Significantly, ₹34.20 crore of this has been earned as net profit in just the last three years.
Andhra Pradesh Heavy Machinery and Engineering Limited (APHMEL), which once faced an uncertain future as a public sector undertaking in the erstwhile united Andhra Pradesh, is now progressing steadily on the path of profitability as a subsidiary of Singareni Collieries Company Limited.
In particular, the financial performance of the company has improved significantly over the past three years. After the Praja Palana government assumed office in the State in December 2023, measures were initiated not only for the expansion of Singareni but also with the objective of transforming its subsidiary APHMEL into a national-level enterprise. These initiatives have infused fresh momentum into the company.
APHMEL, which manufactures and supplies machinery and spare parts to Singareni as well as other major industries, recorded the highest-ever net profit in its 50-year history during the 2025-26 financial year, at ₹23.33 crore.
Profits for Three Consecutive Years
APHMEL, which had once reached the brink of closure due to severe losses, has now been recording profits consistently.
The company earned a net profit of ₹1.05 crore in 2023-24, ₹9.87 crore in 2024-25, and ₹23.33 crore in 2025-26.
With this, the total profits earned by the company since it came under Singareni’s control in 1998-99 have reached ₹60.85 crore.
Taking APHMEL to the National Level
Under the special initiative and guidance of Chief Minister Sri A. Revanth Reddy and Deputy Chief Minister and Energy Minister Sri Bhatti Vikramarka, steps have been initiated under Singareni’s leadership to transform APHMEL into an enterprise capable of competing at the national level.
In August last year, the Deputy Chief Minister personally visited the APHMEL plant and reviewed its performance and development plans. He advised the company not to confine itself merely to supplying industries in the Telugu States, but to explore and secure business opportunities across the country.
He also directed the company to manufacture new-generation machinery and machine components in line with changing industrial requirements, diversify its product portfolio and tap new markets.
During the visit, he also inaugurated several welfare programmes at the plant and interacted with workers, encouraging them to contribute towards the growth of the company.
From Singareni to Leading Companies Across the Country
In the past, APHMEL mainly supplied machinery and spare parts to organisations such as Singareni. It is now expanding its market across the country.
The company is supplying machinery and components to major organisations such as BHEL, GENCO, NMDC and RINL, thereby expanding its business footprint at the national level.
Securing orders from new organisations, diversifying its products and implementing cost-control measures are contributing significantly to the improvement of the company’s financial performance.
A Success Journey from the Brink of Closure
APHMEL was established in 1976 on 209 acres at Kondapalli near Vijayawada, with the objective of manufacturing and supplying machine components and small-scale machinery to industries while also providing employment opportunities to local people.
Initially, the Andhra Pradesh Industrial Development Corporation (APIDC) of the erstwhile united Andhra Pradesh held a 62.35 per cent stake, public shareholders held 35.08 per cent, while the then united Andhra Pradesh Government held 2.56 per cent.
During the initial years, the company ran into severe financial difficulties due to inadequate orders and recruitment of manpower beyond requirements, among other reasons.
At one stage, the number of employees increased to around 800. As losses continued to mount, the company was referred to the Board for Industrial and Financial Reconstruction (BIFR) in 1992, and by 1993 it had entered a serious financial crisis.
By 1997-98, the company was struggling with net losses of around ₹21 crore. As the situation deteriorated further, it reached a stage where BIFR issued orders relating to the closure of the company on November 28, 2002.
Singareni Gave the Company a New Lease of Life
When APHMEL was going through a severe crisis, Singareni stepped forward to support the company.
From 1994 onwards, Singareni began placing orders with APHMEL for machinery and spare parts required for its operations.
Orders were placed for products such as man-riding systems used for transportation of workers in underground mines, buckets required for heavy shovels, roof-bolting rods and other equipment, thereby extending crucial support to the company.
However, as it became clear that merely providing orders would not be sufficient to revive the company completely, Singareni came forward to invest in APHMEL and take up management responsibilities.
The process began in 1997-98 with an equity investment of ₹9.18 crore.
Subsequently, with a total investment of ₹14.08 crore, Singareni became the principal stakeholder with an 81.54 per cent shareholding.
At present, public shareholders hold 11.81 per cent, APIDC holds 5.79 per cent, and the then united Andhra Pradesh Government holds 0.86 per cent.
Transformation under Singareni Management
Apart from placing orders, Singareni also played a key role in the management of APHMEL to put the company back on the path of profitability.
A General Manager-level officer from Singareni was appointed as Managing Director of APHMEL. Officers were also deputed to manage personnel and other key departments.
In recent years, particularly after the Praja Palana government assumed office, APHMEL has gradually strengthened its financial position through the adoption of Singareni’s management practices, cost-control measures, productivity improvement and efforts to secure new orders.
The company, which was once making losses, has now reached a stage where it is earning substantial profits.
300-kW Solar Plant to Reduce Power Costs
Special emphasis has also been placed on cost reduction to make APHMEL more profitable.
As part of these efforts, a 300-kilowatt solar power plant has been established on the plant premises.
APHMEL currently spends around ₹60 lakh annually on electricity required for its plant operations. The new solar plant is expected to significantly reduce electricity expenditure.
The 300-kW solar power plant is expected to generate approximately 1,200 kilowatt-hours of electricity per day.
This is expected to result in savings of around ₹2 lakh per month in electricity expenses.
Although approximately ₹1.24 crore is being spent on the construction of the solar plant, it is estimated that the investment can be recovered in around five years through savings in electricity bills.
Thereafter, the company is expected to gain additional financial benefits every year through reduced power expenditure.
Besides savings in electricity costs, the initiative can also be viewed as a significant step towards clean energy.
Towards Further Expansion
Officials and employees of APHMEL have expressed happiness over the initiatives being undertaken to develop the company into a national-level heavy engineering enterprise.
They stated that the personal visit of Hon’ble Deputy Chief Minister and Energy Minister Sri Bhatti Vikramarka to the plant, his review of development programmes, interaction with employees and workers, and the priority accorded to infrastructure development have provided them with further encouragement and confidence.
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