Diffusion Engineers Ltd - Stock Valuation and Financial Performance

The company was incorporated under the provisions of the Companies Act, 1956 with the name “Diffusion Engineers Private Limited” pursuant to certificate of incorporation dated November 05, 1982 issued by Registrar of Companies, Maharashtra. Further, pursuant to resolutions passed by the company’s Board of Directors at its meeting held on May 06, 1995 and by its Shareholders at the extra-ordinary general meeting held on May 17, 1995, the company was converted into a public limited company. Consequently, the company’s name was changed to “Diffusion Engineers Limited” and a fresh Certificate of Incorporation dated July 03, 1995, was issued by the Registrar of Companies, Karnataka at Bangalore.

Diffusion Engineers is engaged in the business of manufacturing welding consumables, wear plates and wear parts and heavy engineering machinery for core industries. The company is dedicated to providing specialized repairs and reconditioning services for heavy machinery and equipment. Additionally, it is also involved in trading of anti-wear powders and welding and cutting machinery. It provides super conditioning process at its manufacturing facilities, a surface treatment solution for machine components that enhances wear resistance, eliminates stress and improves their repairability ultimately extending their lifespan and reducing production costs. It has developed a synergistic system of forward integration whereby it manufactures special purpose electrodes and flux cored wires which are utilized for manufacturing wear resistance plates (commonly known as wear plates). These wear plates then become an integral part of majority of large industrial equipment which are made in its 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 it in achieving efficiency in the production process and gaining competitive advantage, reducing product costs, enhancing supply chain control and reducing its dependency on third-party suppliers for its operations.

The company focuses on alloy and process development, quality and design to tailor-make products as per its customers’ needs. It presently operates from four manufacturing units, out of which Unit I, II and III are located in Nagpur Industrial Area, Hingna, Nagpur, Maharashtra and Unit IV is located in Khapri (Uma), Nagpur, Maharashtra for processing and manufacturing of its products. Each Unit is supported by necessary infrastructure for storage of raw materials, manufacturing of its products, storage of finished goods, together with quality control measures.

Business area of the company

The company is engaged in the business of providing engineering solutions to customers both in domestic and international market. It provides a wide range of products and services including manufacture of special welding consumables, wear plates and heavy engineering equipment for core industries and provide special and customized repairs and reconditioning services of heavy machinery and equipment. It is also involved in trading of anti-wear powders and welding and cutting machinery. 

Key awards, accreditations & recognitions 

• 2019: Best Employer Brands by Employer Branding Institution.
• 2019: Vidharbha Udyog Gaurav Awards for outstanding contribution to industrial development of Vidharbha.
• 2019: India SME 100 Award.
• 2019: Brand Leadership Award by World Marketing Congress.
• 2020: ET Industry Leaders – MSME 2020 has felicitated the company for exemplary contribution being a MSME for Industrial Engineering.
• 2021: National Accreditation Board for Testing and Calibration Laboratories accredited the company’s factory at T-5 and T-6 with ISO/IEC 17025:2017 certificate for General Requirements for the Competence of Testing & Calibration Laboratories.
• 2022: Great Place to Work Certification.
• 2023: Great Place to Work Certification.
• 2023: National Accreditation Board for Testing and Calibration Laboratories accredited the company’s factory at T-5 and T-6 with ISO/IEC 17025:2017 certificate for General Requirements for the Competence of Testing & Calibration Laboratories. 

Key events and milestones

• 1982: Incorporated as a Private Limited Company.
• 1993: Commenced manufacturing of welding electrodes.
• 1994: Acquired land (in part) for manufacturing facility at Unit I.
• 1995: Converted from Private Limited Company to Public Limited Company.
• 1995: Acquired land (in part) for manufacturing facility at Unit I.
• 1995: Acquired a subsidiary company, Diffusion Super Conditioning Services Private Limited.
• 1997: Commencement of production of flux cored wires and wear plates.
• 2000: Acquired land (N-78) for manufacturing facility at Unit II.
• 2006: Acquired land (N-79) for manufacturing facility at Unit II.
• 2011: Acquired land (Khasra no. 35 and 36) for manufacturing facility at Unit IV.
• 2012: Acquired land (Khasra no. 38/1, 38/2 and 38/3) for manufacturing facility at Unit IV
• 2012: Established subsidiary company, Diffusion Hernon Adhesive and Sealant Private Limited.
• 2012: Invested in overseas joint venture company, LSN Diffusion Limited (United Kingdom).
• 2013: Established subsidiary company in Singapore, Diffusion Engineers Singapore Pte Ltd.
• 2013: Invested in an associate of subsidiary in Singapore, Mecdiff Sdn Bhd (Malaysia).
• 2014: Established a step-down subsidiary company of Singapore Subsidiary in Philippines, Diffusion Wear Solutions Philippines Inc.
• 2015: Acquired land for manufacturing facility at Unit III.
• 2016: Set up and commenced operations at Unit IV.
• 2017: Crossed turnover of Rs 1,000.00 million.
• 2019: Crossed turnover of Rs 1,500.00 million.
• 2022: Undertook expansion of manufacturing facility at Unit IV.
• 2023: Crossed turnover of Rs 2,000.00 million.
• 2024: Acquired leasehold land (Plot Nos. 33-B/1/1/ & 33-B/1/1/Part, MIDC, Hingna, Sonegaon District, Nagpur, Maharashtra) for the Proposed Facility.