About Company

• Established on November 5, 1982, Diffusion Engineers is engaged in the business of manufacturing welding consumables, wear plates and wear parts and heavy engineering machinery for core industries.

• With over 4 decades of experience, the company is dedicated to providing specialized repairs and reconditioning services for heavy machinery and equipment. Additionally, they are also involved in trading of anti-wear powders and welding and cutting machinery.

• They have developed a synergistic system of forward integration whereby they manufacture special purpose electrodes and flux cored wires.

• These wear plates then become an integral part of majority of large industrial equipment which are made in their heavy engineering division and are significant contributor in manufacturing of industrial equipment used in core industries like cement, steel, power, mining, engineering, oil & gas, sugar, etc.

• This forward integration helps them in achieving efficiency in the production process and gaining competitive advantage, reducing product costs, enhancing supply chain control and reducing the dependency on third-party suppliers for their operations.

• During fiscal 2021-2024, DEL has recorded 3rd highest CAGR of 21% in operating income, 2nd highest CAGR of 38% in PAT and 3rd highest CAGR of 33% in EBITDA.

• DEL presently operates from 4 manufacturing units which are located in Nagpur. They also have overseas presence through their Subsidiaries in Singapore, Turkey and Philippines, and Joint Ventures/ Associates in United Kingdom and Malaysia.

• In the last 3 fiscals, they have exported to Singapore, Uganda, Kenya, Nepal, Malaysia, Philippines, United Arab Emirates, Oman, Sri Lanka, Vietnam, Bangladesh, Tanzania, United Kingdom, Germany, Kuwait, United States of America, Indonesia, Russia, Senegal, Switzerland, Lebanon, Bulgaria, Croatia, Zambia, Nigeria.

Strengths

Competitive Strength 

• Synergistic business models focused on forward integration;

• Serving industry major players directly as well as through OEMs;

• Long-standing relationships with customers across industries;

• Consistent financial performance;

• Experienced promoters and strong management team;

• Strategically located manufacturing facilities.

Business Strategies

• Strategic expansion by venturing into nickel, cobalt and iron-based powder manufacturing for enhanced welding consumables portfolio;

• Expanding the geographical reach;

• Strategic Leasing and Maintenance Business Model for Heavy Equipment;

• Diversifying the Anti Wear Solutions and Heavy Engineering Equipment business into new Industries.

Company Promoters

Company Financials

Diffusion Engineers Limited's revenue increased by 10% and profit after tax (PAT) rose by 39% between the financial year ending with March 31, 2024 and March 31, 2023.

Objects of the Issue

The Company proposes to utilize the Net Proceeds from the Issue towards funding the following objects:

1. Funding capital expenditure requirements towards the expansion of existing manufacturing facility at Khasra No. 36, 38/1, 38/2, 38/3, Khapri (Uma), Nagpur- 441 501, Maharashtra, India (Proposed Expansion);
2. Setting up of a new manufacturing facility located at Plot Nos. 33-B/1/1/ & 33-B/1/1/Part, MIDC, Hingna, Sonegaon District, Nagpur-440 016, Maharashtra (Proposed Facility);
3. Funding working capital requirements of the Company; and
4. General Corporate Purposes.