Manufacturer of Specialty Copper Alloy Wires: Includes Real Estate and Assets

Price: $14,000,000
Annual Revenue: $20,000,000 Net Cash Flow: $2,000,000

This globally recognized, vertically integrated manufacturer of non-ferrous copper alloy wires was established more than 20 years ago and is headquartered in a major industrial hub in India. The company has grown from a modest facility into an industry leader with a monthly production capacity of 275 MT. It holds a dominant position in several niche markets, including being one of the largest manufacturers of EDM wire in India and the world’s third-largest producer of toothbrush anchor wire. The company is a trusted supplier to a diverse range of industries, from atomic energy and aerospace to fashion and fast-moving consumer goods.

Products & Services

The company specializes in the production of over 20 different types of high-precision copper-based alloy wires, including Brass, Phosphor Bronze, Nickel Silver, and specialty Bronzes. Its product portfolio includes round and flat wires in various tempers and sizes, fine wires for specialized applications, special electrode wires, and non-ferrous castings. Key product lines with the strongest margins include EDM wire, toothbrush anchor wire, Jari (decorative) wire, and high-specification phosphorus bronze mesh for critical government nuclear projects.

Operations & Facilities

The company operates from an 80,000 sq. ft. company-owned facility equipped with state-of-the-art infrastructure that is included with the sale. This includes three induction furnaces, one oil-fired furnace, six annealing furnaces, and an NABL-approved in-house testing laboratory. The operation is supported by a robust power infrastructure of 1,500 KVA and backup DG sets, ensuring uninterrupted production. A significant competitive advantage is the fully integrated, in-house process from melting and casting to fine wire drawing, allowing for superior quality control and cost efficiency.

Key Investment Highlights

  • Market Leadership: Sole or dominant supplier for critical products, including a 90% share of the NPCL/BARC-approved phosphorus bronze mesh wire market in India.
  • Proven Track Record: A loyal customer base with approximately 60% of clients retained for over 15 years, ensuring stable, recurring revenue.
  • Significant Capacity for Growth: Current operations utilize only 65% of total capacity, providing immediate, capital-light scalability to increase output and revenue.
  • Strong Financials: The company generates a robust topline with a clear path to exponential growth.
  • Government Incentives: Has benefited from significant capital subsidies and holds prestigious approvals, underscoring its operational excellence and compliance.

 Reason for Sale

The shareholders are pursuing a sale due to a generational transition in career interests, presenting a unique opportunity for a new owner to acquire a mature, profitable, and well-established business with a highly experienced and stable workforce.

Listing Details

EBITDA: $2,000,000

Real Estate: $3,000,000(Included in Price)

Location

Square Footage: 80,000

Additional Information

Competition:

The company’s main competitors are regional specialists with significantly lower production capacities and technological limitations. Key differentiators include this company’s scale, full vertical integration, proprietary manufacturing processes, and exclusive government certifications, which create a formidable barrier to entry for competitors.

Potential Growth:

Multiple, clear, and immediate avenues for growth are identified as:

  • Immediate Capacity-Led Expansion: The facility operates at only 65% capacity, with identified, high-margin opportunities to ramp production. This includes increasing production of high-margin EDM and Jari wires to full installed capacity.
  • Government Contracts: Capitalize on being the supplier for critical NPCL/BARC projects. The company has secured an initial order worth $5 million, with a pipeline of tenders offering 15% EBITA margins.
  • Exponential Financial Upside: With a current revenue of $16 million and net income of $0.5 million, near-term expansion is projected to drive revenue to $20 million with a net income of $1 million. With adequate working capital to fully utilize capacity, a topline of $50 million is achievable within a 3-year timeframe.
  • Market & Product Diversification: The unique capability of producing 20 different alloy wires allows for easy entry into new industrial segments and international markets, with existing demand from Asia and Europe.

copper
Contact Us About This Listing
  • Hidden