About Classic Electrodes (India) Limited

BUSINESS OVERVIEW

Classic Electrodes (India) Ltd. is engaged in the manufacturing of welding electrodes and providing engineering solutions to customers across both domestic and international markets. Established in 1997, the company has over 27 years of experience and offers an extensive product portfolio, including General Purpose Electrodes, Low Alloy Electrodes, Low Hydrogen Electrodes, Stainless Steel Electrodes, Hard Facing Electrodes, Cast Iron Electrodes, Non-Ferrous Electrodes, Low Heat Input Electrodes, Cutting and Gauging Electrodes, and MIG Wires.

The company emphasizes alloy and process development, quality, and design, enabling the development of specialized products tailored to customer requirements. With a skilled team of over 95 employees (as of February 28, 2025) and decades of industry expertise, the company is equipped to design, develop, and manufacture complex and customized industrial equipment and components for OEMs and end-user industries.

Operations and Business Model

Classic Electrodes specializes in the manufacturing of general-purpose electrodes and MIG wires, which together contribute to the majority of its turnover. Trading activities account for approximately 30–35% of total revenue. The company procures wire rods, rutile, and other raw materials mainly for captive consumption, while surplus wire rods are sold to industry peers. Bulk procurement of wire rods provides cost advantages through volume discounts, allowing profitable trading with competitive margins.

The company operates from two manufacturing units:

• Unit I: Dhulagarh, West Bengal – engaged in the manufacturing of Welding Electrodes and MIG Wires.

• Unit II: Jhajjar, Haryana – focused exclusively on MIG Wires.

A third facility, Unit III at Bahadurgarh, Haryana, previously manufactured electrodes and MIG wires but was closed in FY 2023–24. Both operating units are equipped with infrastructure for raw material storage, product manufacturing, finished goods storage, and quality control measures. Strategic locations in West Bengal and Haryana provide easy access to transportation, raw material sourcing, and customer markets.

The registered office is situated at 1A, Bonfield Lane, Kolkata, West Bengal, 700001, while the corporate office is located at Unit 201, 2nd Floor, Bus Terminus Commercial Complex, Plot BG-12 AA-1B, New Town, North 24 Parganas, West Bengal, 700156.

Certifications and Quality Standards

Classic Electrodes (India) Pvt. Ltd. is ISO 9001:2008 certified by Moody International Certification Limited. It holds a Bureau of Indian Standards (BIS) license and is registered under the Directorate General of Supplies & Disposal (DGS&D), Government of India. The company maintains well-equipped Chemical and Physical Testing Laboratories with robust Quality Assurance Systems supervised by experienced personnel.

Product Portfolio

The company manufactures both high-volume general-purpose electrodes and special consumables, including Low Hydrogen, Low Alloy, Stainless Steel, Cast Iron, Hard Surfacing, and Reclamation electrodes. Tailor-made solutions are provided for specific industrial requirements, supported by a strong pan-India distribution network.

The diversified portfolio includes:

• General Purpose Electrodes: Suitable for mild and low-carbon steels in fabrication, automotive, shipbuilding, and sugar plant machinery.

• Low Alloy Electrodes: Designed for weathering steels, medium and high-tensile steels.

• Low Hydrogen Electrodes: Used for mild, medium tensile, and low alloy steels with high radiographic soundness.

• Stainless Steel Electrodes: Applied in chemical plants, food and dairy, pumps, and valve components.

• Hard Facing Electrodes: For gears, shafts, hammers, pulleys, spindles, and axles with high abrasion resistance.

• Cast Iron Electrodes: For repair and fabrication of cast iron machine components and dissimilar joints.

• Non-Ferrous Electrodes: Suitable for copper and copper alloys, bearings, impellers, and propellers.

• Low Heat Input Electrodes: Primarily used in railway components, tanks, pipes, and sheet metal works.

• Cutting and Gauging Electrodes: For piercing and cutting ferrous and non-ferrous metals.

• MIG Wires: For welding stainless steel plates, sheets, pipes, and tubes used in chemical, fertilizer, and refinery applications.

Growth and Financial Performance

The company has consistently expanded through product diversification and technological upgrades. Notable milestones include:

• 2000 – Factory approval by the Bureau of Indian Standards.

• 2004 – Factory approval by the Research Designs and Standards Organisation.

• 2009 – Relocation to Dhulagarh with increased capacity and diversification into Mild Steel MIG Wire.

• 2014 – Establishment of Unit II in Bahadurgarh, Haryana.

• 2021 – Introduction of advanced technology for Stainless Steel MIG Wire production.

• FY 2023–24 – Relocation of Unit II to Jhajjar, Haryana, enhancing production efficiency.

In FY 2024, the company reported significant revenue growth driven by a strategic shift towards high-margin products like Stainless Steel MIG Wires and Electrodes.

• Total Revenue increased from ₹15,087.13 lakhs in FY 2023 to ₹19,382.12 lakhs in FY 2024 (+28.5%).

• SS MIG Wires revenue doubled (+106.1%), with volumes increasing by 112%.

• MIG Wires (excluding SS) grew by 29.9% in revenue and 32.5% in volumes.

• Electrodes achieved a steady growth of 4.3% in revenue and 5.9% in volumes.

• Trading revenue rose by 42.9%, supported by profitable trading of wire rods and other products.

This performance highlights strong market demand, effective product mix optimization, and higher sales conversion from inventory, reinforcing the company’s position as a leading player in the welding consumables industry.

As of February 28, 2025, the company have an employee base of  95 permanent employees. The Banker to the company is ICICI Bank Limited.

INDUSTRY ANALYSIS

Assessment of the Welding Consumables Industry

Welding consumables play a crucial role in multiple industries, enabling the production of high-quality and durable products. While they may seem like small components, the choice of the right consumables—such as wires and electrodes—directly impacts the strength, integrity, and appearance of the final weld.

Welding Consumables Market in India

In India, manufacturing heavily depends on welding as the most effective method for joining metals. No other process offers such wide-ranging benefits. Welding consumables—materials that enable the joining of two metals or alloys—determine the overall quality and strength of the weld joint. The choice of consumable depends on the type of base metal, the welding technique applied, and the final product’s application.

Key Product Segments

Filler Wires are essential for reinforcing weld joints, ensuring durability and minimizing the risk of cracks under stress. Available for MIG, TIG, and SAW welding, filler wires come in different forms:

• Solid wires, often copper-coated to prevent oxidation, improve conductivity, and extend tip life.

• Flux-cored wires, which create protective shielding during welding to guard against contaminants.

• Metal-cored wires, filled with alloys and stabilizers, offering advantages like higher productivity, reduced fumes, and cost efficiency.

Choosing a filler metal with a composition similar to the base material reduces porosity, cracking, and distortion, ensuring a more reliable weld.

Welding Electrodes are metallic rods that melt under intense electrical heat to join base metals. They are available in three main types:

• Bare electrodes, used in applications where coatings are unnecessary.

• Lightly coated electrodes, providing enhanced performance compared to bare types.

• Shielded arc electrodes, with a thick coating that protects the weld pool from oxides and nitrides, enabling stronger and higher-quality welds.

Electrode coatings improve insulation, allow the use of high current, speed up the welding process, and make overhead and vertical welding more efficient.

Market Size and Growth Drivers

The Indian welding consumables market was valued at US$ 1.17 billion in 2023 and is expected to reach US$ 1.57 billion by 2028, growing at a CAGR of 6.1%.

Growth is being driven by massive infrastructure development, including roads, bridges, ports, and airports, which require reliable welding solutions for structural stability. Additionally, the expansion of industries such as heavy engineering, energy, oil & gas, shipbuilding, railways, power, transportation, and automotive is boosting demand.

Government initiatives like the National Infrastructure Pipeline (₹111 lakh crore investment between FY20–25), along with industrial reforms such as ‘Make in India’ and ‘Atmanirbhar Bharat’, are expected to accelerate India’s push towards becoming a global manufacturing hub, thereby fueling the demand for welding consumables.

BUSINESS STRENGTHS

1. Technical Expertise: A deep understanding of electrode manufacturing processes, materials, and technology.

2. Quality Control: Ability to produce high-quality electrodes consistently, meeting industry standards and customer specifications.

3. Innovation: Capacity to innovate new electrode designs, materials, or production techniques, staying ahead of competitors and addressing evolving market demands.

4. Customization: Flexibility to customize electrodes according to specific client needs, offering tailored solutions.

5. Supply Chain Management: Efficient management of the supply chain, ensuring timely sourcing of raw materials and components.

6. Distribution Network: Strong distribution channels ensuring widespread availability of products.

7. Customer Service: Excellent customer service and technical support, building long-term relationships with clients.

8. Research and Development: Investment in R&D to continuously improve products and explore new opportunities.

9. Cost Efficiency: Streamlined manufacturing processes leading to cost efficiency and competitive pricing.

10. Brand Reputation: A positive reputation built on reliability, performance, and customer satisfaction.

BUSINESS RISK FACTORS & CONCERNS

1. Dependence on Domestic Market
A significant majority of revenue is generated from the domestic market, with limited sales in Bangladesh and Nepal. Any downturn in domestic demand or failure to maintain a broad customer base could adversely impact revenues and market share.

2. Geographic Concentration of Manufacturing Facilities
All manufacturing operations are concentrated in Dhulagarh, West Bengal and Jhajjar, Haryana, with planned expansion in West Bengal. Localized social unrest, natural calamities, policy changes, or disruptions in these regions could materially affect operations. Additionally, shutdowns or slowdowns at approved facilities may halt production of certain products, leading to revenue loss and customer non-compliance.

3. Operational and Production Risks
Manufacturing activities are exposed to risks such as political instability, workforce productivity issues, regulatory compliance, equipment failure, power and water disruptions, industrial accidents, and pandemics. Machinery breakdowns or delays in rectification may increase costs, disrupt production cycles, and delay customer deliveries.

4. Raw Material Dependency
The business relies heavily on critical raw materials such as wire rods and rutile. Any supply chain disruption, shortage, or price volatility can directly impact production costs, profitability, and cash flows.

5. Revenue Concentration in West Bengal
A substantial portion of revenue comes from West Bengal—70.01% (Feb 28, 2025), 72.94% (FY 2024), 69.63% (FY 2023), and 64.61% (FY 2022). Adverse developments such as competition, reduced demand, natural calamities, political instability, or policy changes in this region could significantly affect revenue, cash flows, and financial performance.

Summary :
The operations of Classic Electrodes (India) Limited face risks primarily due to dependence on the domestic market, geographic concentration of manufacturing facilities, raw material availability and price volatility, and high reliance on revenue from West Bengal. Any disruptions across these areas could materially affect business performance and financial stability.