About Monolithisch India Limited

Business Overview

Monolithisch India is engaged in the manufacturing and supply of specialized ramming mass, a refractory consumable used for heat insulation and lining in induction furnaces at iron, steel, and foundry plants. The company also conducts occasional trading to fulfill urgent or excess customer demands.

The core customer base includes iron and steel producers in Eastern India, specifically in West Bengal, Jharkhand, and Odisha. The company’s manufacturing facility is strategically located near most customers and raw material suppliers, primarily in Bihar, Jharkhand, and Madhya Pradesh.

The main product, specialized ramming mass, is composed of alpha-quartzite and stone boulder, known for its high density, compactness, and resistance to weathering, making it ideal for creating a thermal insulation barrier in induction furnaces.

Monolithisch India offers various grades of ramming mass, such as SGB777, SLM-999, BG-77, Quartzite Grain SLM-980, and SLM-980, tailored for furnaces of different sizes and makes. All products are developed in accordance with customer specifications and required chemical compositions.

In addition to a strong domestic presence, the company has also exported products to Nepal during FY2024-25. As on March 31, 2025, the Company has 26 full-time employees, apart from the onroll employees, they also employ contract labour for different operations in the manufacturing facility. The Banker to the Company is ICICI Bank Limited.

Industry Analysis

Quartz Powder & Ramming Mass Industry Overview

The performance and efficiency of induction furnaces are significantly influenced by the quality of ramming mass, which ensures smooth operation, optimal output, and superior metallurgical control. Ramming mass is classified into three types—acidic (silica-based), basic (magnesia-based), and neutral (alumina-based). Among these, silica ramming mass, also known as quartz ramming mass, is most widely used in the steel industry’s induction furnaces due to its technical and economic advantages.

Advantages of Quartz Ramming Mass

• Low thermal conductivity, reducing energy loss and enhancing temperature resistance.

• Low expansion coefficient, ensuring stable furnace lining.

• High silica content (>98.9%), which promotes slag formation by oxidizing impurities.

• Cost-effective, being 10–20% cheaper than alumina or magnesia alternatives.

Secondary Steel Sector in India

India ranks as the second-largest producer and consumer of steel globally. The steel sector contributes approximately 2% of the national GDP and provides employment to 2.6 million people directly and indirectly. The industry is split into primary and secondary sectors based on production methods.

Role of the Secondary Steel Sector

• Utilizes the DRI-EAF (Electric Arc Furnace) and DRI-IF (Induction Furnace) routes.

• Contributes around 40% of India's crude steel output.

• Includes 333 DRI plants, 55 EAFs, 1103 IFs, and 1313 steel re-rolling mills.

• Accountable for around 50 million tonnes of GHG emissions annually.

Challenges faced by the secondary sector include:

• High emissions, reliance on low-quality inputs, and scattered operations.

• Limited technology adoption and slow post-COVID recovery, in contrast to integrated steel plants.

To meet India’s net-zero emissions target by 2070, a low-carbon transition (LCT) in this sector is essential, requiring financial and policy support for cleaner technologies.

Steel Sector Performance & Growth Trends

Recent Performance (Q1 FY25)

• Crude steel production: 36.61 million tonnes (MT)

• Finished steel production: 35.77 MT

• Finished steel consumption: 35.42 MT

Annual Performance (FY23 & April 2024)

• FY23:

  • Crude steel: 126.26 MT

  • Finished steel: 122.28 MT

  • Consumption: 119.86 MT

• April 2024:

  • Crude steel: 11.919 MT

  • Finished steel: 11.215 MT

  • Consumption: 11.076 MT

Future Outlook

• Steel output is projected to reach 500 MT by 2050, a nearly 4x increase from current levels.

• The National Steel Policy (2017) targets 300 MT steel-making capacity and 160 kg per capita consumption by 2030–31.

Major Developments

• Tata Steel to set up a 0.75 MTPA plant in Punjab using scrap-based EAF.

• SAIL supplied 30,000 tons of specialty steel for India’s first indigenous aircraft carrier, INS Vikrant.

• JSW Group and IIT Bombay formed a strategic alliance to establish a steel technology hub.

Metals & Mining Sector Growth

Key Financials & Production (FY23 – Feb 2024)

• GVA from mining and quarrying: $37.9 billion (FY23)

• Mineral production: ₹1.18 lakh crore (~$14.37 billion)

• February 2024 production highlights:

  • Coal: 966 lakh tonnes

  • Iron ore: 244 lakh tonnes

  • Natural gas: 2886 million cu.m.

  • Petroleum (crude): 23 lakh tonnes

  • Bauxite, Chromite, Limestone all saw strong Y-o-Y growth

  • Index of mineral production in Feb 2024 stood at 139.6, an 8% increase over Feb 2023

Conclusion

India’s secondary steel sector is a major contributor to the nation’s steel output but faces challenges in emissions and modernization. With rising steel demand, large-scale investments, and supportive policy frameworks, the industry is set for robust long-term growth. The quartz-based ramming mass market will benefit directly from this expansion, particularly in the induction furnace segment.

Business Strengths

1. Established Manufacturing Facility with Strategic Location
Located in Purulia, West Bengal, the manufacturing facility spans 3.5 acres and is equipped with crushing, mixing, and packing machines such as jaw crushers, roll crushers, and vibrators, with an installed capacity of 1,32,000 MTPA. The automated production process ensures minimal human intervention. Around 80.15% of raw materials are sourced from Bihar, Jharkhand, and Madhya Pradesh, ensuring cost efficiency and supply stability.

2. Strong Customer Relationships with Geographic Advantage
A loyal customer base in the iron and steel industry across Eastern India has resulted in long-standing relationships and business stability. The customer count grew from 41 in FY2023 to 63 in FY2025, with 61.44% of revenue from repeat customers and 52.46% CAGR in operational revenue.

3. Experienced Promoters and Management Team
The company is led by experienced promoters including Prabhat Tekriwal (36 years of experience) and Harsh Tekriwal (Mechanical Engineer & MBA with 7 years of experience). Leadership has contributed to strategic growth, operational efficiency, and client satisfaction.

4. Expansive Product Portfolio
The product range includes SGB-777, SLM-999, BG-77, Quartzite Grain SLM-980, and SLM-980, tailored for varied furnace sizes and specifications, developed through customer-driven innovation and precise grading techniques.

5. Robust Financial Performance
Revenue from operations grew from ₹4,187.79 lakhs in FY2023 to ₹9,734.43 lakhs in FY2025 (CAGR 52.46%), while net profit rose from ₹454.29 lakhs to ₹1,448.80 lakhs (CAGR 59.46%). EBITDA margin improved from 16.04% to 21.64%, with ROCE at 46.22% and ROE at 53.94% in FY2025, indicating strong operational leverage and capital efficiency.

Business Strategies

1. Expanding Customer Base and Deepening Existing Relationships
With a core focus on the iron and steel industry, the customer base has increased from 41 in FY2023 to 63 in FY2025, alongside a CAGR of 52.46% in operational revenue and 61.44% business from repeat customers. Continued emphasis on R&D, product quality, and timely delivery is expected to drive growth from existing clients and help enter new regional and multinational markets.

2. Geographic Expansion and Network Growth
Currently deriving over 90% of revenue from Eastern India (West Bengal, Jharkhand, and Odisha), the strategy includes penetrating new geographies and enhancing presence through the setup of a new manufacturing unit. This expansion aims to broaden the customer base, support additional demand, and strengthen market position across diverse regions.

3. Capacity Expansion and Infrastructure Development
Manufacturing capacity, currently at 1,32,000 MTPA, has been enhanced through capital investments of ₹223.01 lakhs (2023), ₹169.03 lakhs (2024), and ₹241.53 lakhs (2025). Plans are in place to establish an additional facility on ~2.60 acres in Paschim Bardhaman, West Bengal, along with further expansion via subsidiary Metallurgica India Pvt. Ltd., enabling scalability and operational efficiency.

Business Risk Factors and Concerns

1. Potential Conflict of Interest with Group Company
Mineral India Global Private Limited, a group company, operates in a similar line of business—manufacturing and supplying specialized ramming mass. Although both companies have signed a non-compete agreement (April 29, 2025) with defined operational territories, any violation or non-compliance of this agreement may adversely impact operational and financial performance, despite legal remedies being available.

2. Geographical Concentration Risk
A significant portion of revenue (over 90%) is derived from West Bengal, Odisha, and Jharkhand, and manufacturing is concentrated in Purulia, West Bengal. This exposes the business to region-specific risks, including natural or man-made disruptions, local demand fluctuations, and adverse regional developments, which may materially impact operations and revenue.

3. Dependence on Limited Product Grades
A major portion of revenue is generated from the SGB-777 grade of ramming mass. Any decline in demand for this specific grade may result in a material adverse effect on the company’s financial condition, business performance, and cash flows.

4. Industry Dependency Risk
The business is highly reliant on the iron and steel industry, which drives demand for ramming mass. Any slowdown or volatility in the metal sector, particularly in iron and steel, may lead to order cancellations, price reductions, delayed payments, and lower margins, thereby adversely affecting financial stability and growth.

Monolithisch India faces key risks from potential conflicts with a group company, geographical revenue concentration, over-dependence on specific product grades, and high exposure to the cyclical iron and steel sector. These factors can significantly affect the company’s operational continuity and financial performance.