Royalarc Electrodes IPO Details

Royalarc Electrodes Limited is a company incorporated in Mumbai, Maharashtra, on January 15, 1996, as “Royalarc Electrodes Private Limited” under the Companies Act, 1956. It was later converted to a public limited company on March 9, 2005, and the name was changed to “Royalarc Electrodes Limited.” In June 2023, the company further changed its name to “Royal Arc Electrodes Limited.”

The company specializes in the manufacturing of welding consumables, including welding electrodes, flux-cored wire, MIG/TIG wires, and various ancillary products. These products are primarily used across industries such as railways, roadways, airport infrastructure, refineries, shipyards, mines, sugar industries, telecom, and thermal power stations.

The company operates from a highly advanced manufacturing facility in Zaroli, Umbergaon, Gujarat, which spans 25,082.61 square meters. The facility is equipped with advanced machinery and quality assurance equipment to ensure products meet international standards. The company’s products undergo stringent testing and certification, including certifications from organizations like the American Bureau of Shipping (ABS), Indian Boilers Regulation (IBR), and Bureau of Indian Standards (BIS).

Royalarc Electrodes Limited manufactures and supplies welding products made from materials like MS strips, MS wire, SS strips, SS wire, nickel wire, and ferro alloy powder. The company's manufacturing processes include wire drawing, cutting, powder mixing, and baking. It has ISO 9001:2015 certification and caters to both domestic and international markets, exporting to over 20 countries.

The company’s raw materials are procured from domestic suppliers, and the cost of raw materials consumed accounted for a significant portion of its revenue over the past years.

In terms of products, the company offers various types of welding electrodes, flux-cored wires, and MIG/TIG wires, with each product serving different industries and applications. While MIG/TIG wires were historically manufactured in-house, the company has temporarily switched to trading these products based on market demand, with an installed manufacturing capacity of 60 MT per month for MIG/TIG wires.

The company is led by experienced promoters with deep knowledge of the welding consumable industry and has a workforce of 144 employees, including skilled labor and management. The business is characterized by strong client relationships, with a majority of its business coming from repeat clients.