About Super Iron Foundry Limited

Business Overview

Super Iron Foundry Limited is a leading manufacturer and exporter of municipal castings, ductile iron pipe fittings, ductile iron automotive castings, ductile iron agricultural castings, railway castings, and cast-iron counterweights. The company specializes in producing high-quality iron castings used in infrastructure development, particularly in roadway construction, stormwater drainage systems, telecom networks, and sewerage systems.

Founded in 1988 and headquartered in Kolkata, West Bengal, Super Iron Foundry has built a reputation for engineering excellence, quality control, and global market reach. The company operates a state-of-the-art manufacturing facility in Durgapur, West Bengal, which is equipped with modern robotic automation systems and high-precision molding lines.

Super Iron Foundry’s key products include:

• Municipal Castings – Access covers, gully grates, and drainage components used in urban infrastructure projects.
• Ductile Iron Pipe Fittings – Components used in water supply and sewage systems.
• Automotive Castings – Parts used in heavy-duty vehicles and industrial machinery.
• Agricultural Castings – Rollers and counterweights for agricultural equipment.
• Railway Castings – Cast iron components for railway infrastructure.
• Industrial Counterweights – Used in cranes, elevators, and heavy industrial machinery.

With a global client base spanning Europe, the Middle East, and North America, the company exports a significant portion of its products to high-growth infrastructure markets such as UAE, Qatar, Italy, Germany, France, Switzerland, the UK, and the USA​.

As on December 31, 2024, Company has 189 employees on payroll. The Bankers to the Company is UCO Bank and State Bank of India.

Industry Analysis

The global foundry industry plays a critical role in the manufacturing and infrastructure ecosystem. It supports industries such as construction, automotive, transportation, and industrial machinery.

1. Global Foundry Industry Overview

• The global castings market is projected to grow at a CAGR of 6.4% from 2024 to 2030 due to increasing demand in automotive, railways, and construction.
• The total size of the foundry industry worldwide is estimated at USD 200 billion, with Asia-Pacific dominating the sector due to cost-efficient production in India and China.
• Key trends include sustainability, automation, and lightweight materials, with industries moving towards high-strength and corrosion-resistant iron products​.

2. Indian Foundry Industry Overview

• India is the second-largest producer of castings globally, with an industry size of USD 20 billion and an expected growth to USD 25 billion by 2025.
• The industry comprises 4,500+ foundries, of which 85% are small-scale, 10% medium-scale, and 5% large-scale.
• Government initiatives like ‘Make in India’, Smart Cities Mission, and Atmanirbhar Bharat are boosting domestic production​.

3. Market Trends and Key Drivers

• Smart Cities and Urbanization: Rising demand for municipal castings and drainage solutions.
• Infrastructure Expansion: Increased investments in highways, railways, and metro projects.
• Sustainability & Circular Economy: Focus on recyclable materials and energy-efficient manufacturing.
• Technological Advancements: Adoption of robotic casting, digital twin technology, and AI-based quality checks.

4. Competitive Landscape

• The Indian foundry industry is highly fragmented, with major players focusing on export-oriented growth.
• Super Iron Foundry competes with leading global players like Electrosteel Castings, Kirloskar Ferrous, and Ashok Iron Works.
• Market share in terms of revenue and profitability is dominated by large-scale, high-tech foundries​.

Business Strengths

1. Diverse and High-Quality Product Portfolio
   • Super Iron Foundry offers a wide range of products (500+ SKUs) that cater to multiple industries, including infrastructure, automotive, railways, and water management.
   • The company’s castings adhere to international standards like EN124, making them globally competitive​.
2. Global Market Leadership in Municipal Castings
   • The company exports 95% of its products, with a strong clientele in the UK, Germany, France, and the Middle East.
   • It supplies major infrastructure projects worldwide, including Saudi Arabia’s Roshn Project and Murcia Housing Project​.
3. Advanced Manufacturing Capabilities
   • The Durgapur facility is ISO-certified and equipped with automated molding lines and precision robotic arms for higher efficiency and quality control.
   • Focus on cost reduction and energy efficiency, ensuring sustainability in production​.
4. Strategic Location and Supply Chain Advantage
   • The Durgapur plant is located in West Bengal’s mineral belt, ensuring cost-effective access to raw materials.
   • Efficient logistics with port connectivity facilitates smooth exports​.
5. Strong Financial Performance
   • Revenue from operations (FY 2024): ₹15,482.99 lakh.
   • Profit after tax (FY 2024): ₹394.06 lakh.
   • Consistent order book and growing demand from infrastructure projects ensure revenue stability​.

Business Strategies

1. Geographical Expansion
   • Strengthening market presence in Saudi Arabia, UAE, and Qatar, where mega infrastructure projects are creating demand.
   • Penetrating the Indian market, leveraging the Smart Cities initiative and railway expansion projects.
2. Technological Innovation
   • Adoption of robotic automation, AI-driven quality control, and predictive maintenance systems to enhance productivity.
   • Green manufacturing initiatives to align with global sustainability standards​.
3. Product Diversification and New Market Segments
   • Expanding into high-margin industrial and heavy engineering castings.
   • Developing lightweight and high-strength cast iron components for electric vehicles (EVs).
4. Cost Optimization and Supply Chain Efficiency
   • Implementing lean manufacturing and waste reduction strategies to improve profit margins.
   • Strengthening supplier partnerships to ensure stability in raw material pricing​.

Risk Factors and Concerns

1. High Dependence on Exports (95% Revenue from Overseas)
   • Any economic downturn or trade policy changes in Europe and the Middle East may impact revenues.
   • Geopolitical tensions and currency fluctuations could increase business risks​.
2. Raw Material Price Volatility
   • The prices of pig iron, scrap, and alloys fluctuate based on global demand-supply dynamics.
   • The company’s profitability is sensitive to inflation in raw material costs​.
3. Regulatory and Compliance Risks
   • The foundry industry is subject to environmental and pollution control regulations.
   • Compliance failures could lead to legal penalties or production shutdowns​.
4. Intense Competition from Domestic and International Players
   • Large foundries in India, China, and Germany may offer competitive pricing, impacting margins.
   • The need for continuous R&D and process improvements to maintain competitive advantage​.