Arm Welders to expand operations, foray into new product lines

Arm Welders, a supplier of welding equipment and automation solutions to the automotive and other sectors, is on the lookout for a new, 2 lakh square feet facility in Pune, as it looks to combine its existing three plants. 

This strategic move will enable Arm Welders, which has a turnover of Rs 100 crore, to pursue new product lines and explore opportunities in additional sectors. 

Currently, the company operates a 20,000 sq. ft. facility that integrates production of welding guns, a corporate office, design centre, and R&D. A nearby 50,000 sq. ft. plant focuses on manufacturing machines and automation systems, while a separate 8,000 sq. ft. unit handles critical parts machining.

Expanding operations 

The company seeks to expand its portfolio into specialised welding solutions like laser welding and special materials welding technologies, besides its core business in sheet metal welding for automotive including giants like Tata Motors, Mahindra & Mahindra, Toyota, and Volkswagen in addition to catering to the railways. 

“This would be an added capacity for us to expand with joint ventures in different segments," said the CEO, Brijesh Khanderia, adding that the market potential for Indian automotive welding and automation currently stands at over Rs 1000 crore. 

The company has witnessed impressive growth, averaging a CAGR of 35-40% over the past three years. Looking ahead, Arm Welders maintains a bullish outlook, aiming for 30% growth in the current year and a sustained minimum CAGR of 20-25% over the next five years. The company's current employee strength stands at around 180 people.   

Solidifying presence in Vietnam, market expansion on the table

Arm Welders is betting on the Vietnamese market to increase exports to 20-25% of revenues. The company which supplied welding guns for the Skoda Project in Vietnam, aims to further solidify its position in the country, as it gets an early mover advantage in a market dominated predominantly by Japanese and Chinese players.

Skoda is putting some plants in Vietnam for whichArm Welders will be supplying welding guns to a third party doing the automation work for the Skoda project. 

The company has also set sights on Thailand and Indonesia next, with the possibility of expansion to Latin America and other geographies as well. 

"The vision is to make Arm Welders a global supermarket in the next five years, which will always have a product that one wants," Khanderia noted.

Focus on new age materials 

With an increased impetus towards electric vehicles and the rise of alternative fuels, Khanderia acknowledged the unique welding challenges posed by new age materials.

Lightweight alloys, high-sensitivity materials, and the widespread adoption of aluminium in lightweight vehicle segments all demand a departure from traditional steel welding approaches.

These new materials necessitate precise welding techniques and specialised venting methods. To address this, Arm Welders boasts a dedicated R&D department continuously developing products specifically tailored for welding these next-generation materials. Their R&D team conducts extensive research, experimentation, and trials to ensure their products deliver optimal performance when working with these novel materials.

The company also designs and manufactures its own controllers, the "brains" of the machines that regulate current delivery and monitor the welding process. This in-house control system fosters seamless integration with the welding guns, ultimately optimizing the entire welding experience, he explained.  

Prior to 2011-2012, the company relied heavily on the automotive industry, generating 90% of its revenue from this sector. However, they further diversified into other underserved segments like railways, furniture, construction, and general fabrication. This strategic move identified unmet needs and positioned Arm Welders as a solution provider, offering complete turnkey projects to non-automotive industries as well. 

Today, Arm Welders operates as a diversified entity with three distinct verticals. The product vertical supplies welding equipment, while the automation vertical delivers complete turnkey projects. Recognising the criticality of after-sales support, it also maintains a dedicated spares and services vertical, to minimise customer downtime.