Highlights of the meet:

Ador Welding is India's largest company in the welding business and has globally accepted products & services.

It has 300 plus distributors in India.

The company has International Business Division (IBD) located in Sharjah (UAE) which handles business in over 40 countries. The IBD has over 24 distributors across the globe.

The company provides automation solutions & consumables for automobile companies and its ancillaries.

Its automotive plants serves companies like Tata Motors, Hindustan Motors, Maruti Suzuki, Ashok Leyland, Force Motors, Yamaha, Bajaj Auto, Mahindra & Mahindra, International Auto, Wheels India, etc.

In Defence the company serves caters to Army Base Workshop (512, 505, EBW, Dumdum, Siligudi), Ordnance Factories, ARDE, RNDE, Shipyards (Goa, Cochin, L&T, Hindustan, Pipavav, etc), Walchandnagar Industries and HWF, Avadi.

Under infrastructure segment it supplies welding automation products and consumables for the development of the infrastructure. In infrastructure it caters to Metros (Delhi, Kolkata, Bangalore, Chennai and Mumbai) and Airports (has catered to Delhi T3 and Bangalore). In infrastructure it has supplied to major infra companies such as Shapoorji Pallonji, Indiabulls, PES Engineering, L&T, etc.

In mining the company is instrumental in setting up the structure and process operation for mines. Its clients include Coal India, Nalco, Bharat Gold Mines, Indian Rare Earths, Vedanta, Sesa Goa, Chowgule Mining and Salgaonkar Mining.

For Nuclear Plants the company provides welding solutions for welding high-alloy austenitic materials, high-temperature materials and capillary tubes. Its clients for Nuclear Plants are BARC, Kalpakkam, Narora and Kaiga nuclear plants.

It also serves other infra sectors such as railways, Refineries, Oil and Gas, Pipelines, Ship Building, Steel Plants, Thermal Power and Wind Power.

Oil and Gas industry accounts for 23% of its sales. This is followed by Heavy Engineering (15%), Chemicals & Fertilizers (13%) Power (12%), Shipbuilding (9%), Infra and Auto (8%) and Railways (5%).

In power the company is seeing growth in wind power because of the government of India's push on the renewable energy. The company is seeing good growth and good demand for those some products it has developed for this segment.

In defence it is seeing a lot of new things happening. It has developed a couple of products for the application in defence.

Within defence, Navy is doing very well. The company has developed products for Navy which are approved.

Market Size for Consumables is Rs 2300-2500 crore for the organized market and Rs 800-1000 crore for the unorganised market.

Market Size for Equipment business is Rs 300-400 crore for the organized market and Rs 300-400 crore for the unorganised market.

During the September 2016 quarter return on tangible net worth improved from 1.6% to 2.4% y-o-y and from 0.6% q-o-q.

During the September 2016 quarter RoCE improved from 4% to 5% y-o-y and from 2% q-o-q.

The company will focus on increasing market share Strategy for achieving growth.

It will focus on strategic manufacturing and strategic sourcing to improve profit margins.

It hopes to increase manufacturing effectiveness by reduction in process loss and increased productivity.

New product launched will be done by having strategic associations.

It will continue to exploring new geographies.

More focus will be on expanding capabilities in Project Engineering Business to address new products/client.

Its Project Engineering Business Provides Engineering, Process Design and Project Management services since 1980 to Indian and Overseas Customers/

PEB division has State-of-art fabrication facility in Pune with "R" & "U" stamp certification

PEB division product range includes Flare Systems & Components, Process Equipment, Industrial Application, LSTK Turnkey Projects, etc.

The company secured new order worth Rs 108 crore for its Project Engineering (Consumable) business. This project is to be completed by April –May 2017. Up to 30% of Rs 108 crore order is expected in FY 2017.

This new order will have less than normal margin but the management will strive to achieve 8% margins for this order.

It bid for this order to penetrating in the overseas market.

Hence forth the company will bid only for large orders (but with better margins). It has already bid for 3-4 such large orders the status of which will be known only by March 2017.

On like to like basis (apart from this Rs 108 crore order) margins in second half of Equipment Business will improve by 100 basis points.

Volume growth will be good in equipment going forward. It hopes to achieve 8-10% volume growth.

GST will play a good role in welding industry as the organized market hopes to eat into unorganized market business to some extent.