Electrode Mfg. Business Raising Funds In Vishakhapatnam
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Product / Service
Manufacturing of all types of welding electrodes.
Clientele type
Servicing various industries with a dedicated distributor network, they maintain a presence across four states: Uttar Pradesh, Andhra Pradesh, Karnataka, and Tamil Nadu, encompassing approximately 20 distributors in their network.
Premises
OWNED
Premise Size: 500 yards
Market Value (in INR): 6,000,000
The land holds a value of 30 lakhs, while the building itself is appraised at an additional 30 lakhs, making the combined property worth 60 lakhs.
Asking Price Includes
They are offering a 50% ownership stake in the business and are open to multiple investors to collectively raise a total fund of 4 crores.
Reason
The deal rationale is rooted in the necessity to offer credit terms to clients, which necessitates initial capital. Consequently, securing funds will help them to take more orders.
Other Details
Welding electrodes enjoy consistent demand across industries such as construction, automotive, and manufacturing. Their adaptability to various welding processes and industry requirements makes them a reliable choice. Their Stringent quality standards ensure the production of dependable welding electrodes. They Tailor products to cater to specific applications and foster connections with niche markets. Expanding product lines to include related welding equipment or safety gear can diversify revenue streams. The owner brings 12 years of industry expertise, backed by a mechanical engineering background and an MBA master's degree. The team comprises 10 members, including 1 Marketing Director, and the remainder consists of skilled manufacturing staff. The plant boasts a manufacturing capacity of 4 tonnes per month, with the current production rate standing at 1.5 tonnes monthly. In the current scenario, an investment of 25 lakhs is essential for the production of 1 to 1.5 tonnes, primarily allocated to the procurement of raw materials and maintaining inventory.
Business Tags
₹10 to ₹200 Cr
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