Esab India Limited ↗

ESAB India is promoted by ESAB group which has global presence in welding business since 1904. ESAB India started its operations in 1987 by acquiring the welding business of Peico Electronics & Electricals Limited (now Philips India Limited). Over the years, ESAB India has also acquired welding business from two more companies. The company’s main operations can be broadly divided into consumables (electrode, welding wire & flux) and welding equipment produced. ESAB India

ESAB India is a part of ESAB Group which was established in the year 1904 engaged in production of welding consumables and equipment. The group’s reach extends sales and support through their subsidiaries established in 80 countries having more than 8,700 employees and 26 manufacturing facilities across 4 continents. The group is having R&D centres in Europe, North America and India. ESAB India Limited is held by ESAB Holdings Limited, UK and Exelvia Group India BV

By virtue of being leading player in the domestic market, ESAB India has been able to manage volatility and its impact arising from its major raw material (steel). Though PBILDT margin has been impacted by volatile steel prices, it stood in the range of 11-13.5% in the past fiscals as ESAB India has been able to pass on increase in raw material prices to its customers. With relatively stable profitability and in absence of borrowings, ESAB India has been generating relatively

As on March 31, 2018, ESAB’s liquidity profile remains strong with cash balance of Rs.46.9 crore, liquid investments of Rs.124.5 crore and nil debt. However during Q3FY19, the company declared dividend payout resulting in cash outflow of Rs. 167 crore (including dividend distribution tax) due to which the company’s liquid assets reduced to around Rs.60 crore (excluding cash margin of Rs.11 crore provided as bank guarantee lien) as on 31st December 2018. Nevertheless, the

The company’s key raw materials are Mild Steel, MS Wire Rods, Non Ferrous Metals, Minerals, Chemicals and Piece Parts. Mild Steel and MS Wire Rods constitute around 50% of the total cost of Raw Materials consumed during FY18, followed by Piece Parts which constituted around 20%. The company procured most of its total raw materials from domestic sources during FY18. The Price of the raw material in India has witnessed increasing trend during FY18. The average

Both Equipment and consumables are sold to the industries such as cement, sugar, steel, fabrication, mining and power for both capex and maintenance related work on regular basis and the R&M is linked majorly to the infrastructure sector including power and railways for new and maintenance of existence projects. The welding industry’s performance is majorly linked to the core industries as well as infrastructure sector whose performances are cyclical in nature. Though,

The welding industry comprises welding equipment, consumables and welding services. The welding consumables market accounts for a significant share in the welding industry compared to welding equipment and welding services. Electrodes and filler metals are the key consumables used in various welding processes. Welding finds wide application in various industries such as automobiles, building & construction, pipelines, and oil & gas. The Indian welding industry comprises