Arfin India to expand its aluminium product facilities to cater to growing export demand

Arfin India, which is one of India’s leading aluminium products manufacturing companies has been consistently upgrading its product categories through innovative techniques and research to stand tall in its category. The company has consistently improved its earnings before interest, depreciation, tax and amortisation (EBIDTA) margin from 3.4 per cent in FY13 to 8.1 per cent in FY17, through cost optimisation, scale and better pricing.

The company’s newly added value added product portfolio has been contributing to overall margin increase. During 2013-17, volumes grew 22 per cent annually and revenues rose at CAGR 20%.  During FY18, it delivered a strong 40 per cent sales growth and 67 per cent increase in net profit to INR 21.7 crore.

Arfin manufactures aluminium wire rod, aluminium deox, aluminium alloy ingot, conductor and cables and other aluminium-based products. These are used in industries such as steel, power, automotive and others. The company is a key supplier to companies like Jindal Stainless, Jindal Steel & Power, Essar Steel, Tata Steel, ArcelorMittal, Steel Authority of India, JSW Steel, Banco Products, Rico Auto Industries, and Toyota etc.

Due to growing consumption in the automotive and infrastructure construction, demand for aluminium products is growing at higher pace of about 7-9 per cent. This has driven the market for Arfin India domestically and internationally. The company is eying the export market more aggressively with the addition of new international clients in FY18.  Currently, exports account for a 3 per cent of overall revenue.

To cater to the growing demand from new clients, the company is expanding its manufacturing capacities. Its wire rod capacity will be increased from 15,000 tonne at present to 20,000 tonne by FY19 and alloy ingot capacity will be boosted from 6,000 tonne to 18,000 tonne by FY19. It recently commercialised the conductor and cables facility in Q3 FY18 with a capacity of 55,700 tonne per annum. The company plans to increase the capacity to 73,600 tonne.