Steel Casting Foundry Business For Sale In Coimbatore

About Business

Business Overview

Established as a reputed supplier of steel castings, this foundry business serves a wide spectrum of industries with a one-stop solution for all stainless steel casting requirements. The facility is ISO 9001:2015 certified. All grades of steel castings are supplied, meeting both national and international standards.

The business includes a fully equipped foundry, enabling the delivery of high-quality steel castings tailored to customer needs. Clients span both domestic and international markets, with strong repeat business driven by consistent quality and on-time delivery.

Key Capabilities and Facilities

Specializes in valve castings, with the capability to manufacture custom castings as per client requirements.
Produces steel castings from 5 kg to 2750 kg in single-piece weights.
Operates with two furnaces of 3 MT and 500 KG capacities.
Average monthly production stands at 125 MT, scalable to 175–200 MT.
Current monthly turnover is approximately INR 3 crores (~USD 353,000), with a potential to increase to INR 4–5 crores under full load.

Regulatory Approvals and Certifications
All necessary government approvals and certifications are in place:

GST registration
Factory license
Pollution Control Board clearance
Import/Export license
Employees’ Provident Fund (EPF)
Employees’ State Insurance (ESI)
NABL accreditation

Memberships Include:

Engineering Export Promotion Council (EEPC)
Indian Institute of Foundrymen (IIF)
National Small Industries Corporation (NSIC)
Tamil Nadu Electricity Consumers’ Association

Infrastructure Overview
The facility includes:

Office building
Mechanical and chemical testing laboratories
Melting and pouring zones
Two furnaces (3 MT and 500 KG)
Knockout and fettling areas
Pattern storage
Sand reclamation plant
Staff canteen

Current Business Position

Orders in hand: Approximately 600 MT, valued at INR 15 crores.
These orders alone can keep the foundry operational for the next 3–4 months, offering a stable runway for new ownership.
Minimum profit from these orders is projected at INR 3–4 crores.
Moulding box assets, worth INR 1 crore, are excluded from the primary valuation.
Customer base, both domestic and international, will be fully handed over. These are long-term clients with ongoing order placements.
Together, the orders in hand, moulding assets, and customer base contribute an additional value of INR 4–5 crores, increasing the total business valuation to INR 25 crores.

Profitability and Growth Potential

Estimated monthly profit margin: 15–20%, equating to INR 40–50 lakhs
Annual net profit: INR 5–6 crores (~USD 575,000–700,000)
Export margin potential: Additional 10% with increased international sales
Ownership of the foundry ensures uninterrupted supply, strengthening market presence both locally and globally
The business offers substantial long-term growth opportunities in valve casting and other sectors aligned with market trends

Clientele type

Industries Served
The foundry caters to a diverse range of sectors, including:

Oil and Gas
Valve Manufacturing
Power Plants
Mining
Earthmoving Equipment
Heavy Engineering Casting
Copper Smelting

Major Clients
The company has built long-standing relationships with several reputed national and international clients, including:

AMPO Valves – India & Spain
JC Valves – India
ControlSeal Valves – Netherlands
BHEL – India
ILP – India
NLC – India
Vector Valves – Spain
LM Pumps – Germany
PASAR – Philippines
Mount Isa Mines – Australia
Kansanshi Mines – Zambia

Premises

OWNED

Premise Size: 2.70 ACRES

Market Value (in INR): 12.00 Cr

The business operates from a self-owned premises spanning 2.7 acres, providing ample space for current operations and future expansion.

Asking Price Includes

The proposed sale includes the entire business, comprising:

Ownership of land and premises

All plant and machinery

Ongoing customer orders and relationships

Established brand goodwill

Reason

The promoter is seeking to exit the business due to commitments in other ventures and not able to dedicate full-time attention to the foundry operations.

Licenses

CERTIFICATIONS: ISO 9001:2015 CERTIFIED BY TUV NORD • PED 97/23 EC ANNEXURE 1 PARA 4.3 • IBR WELL-KNOWN FOUNDRY • API 20A FOUNDRY QUALIFICATION • WELDER QUALIFICATION: APPROVED WPS & PQR ASME & EN STANDARDS • NABL (NATIONALLY ACCREDITED LAB FOR TESTI

More Details

The business is led by a promoter with over 40 years of experience in the engineering industry. The operations are supported by a dedicated and skilled workforce of 64 employees.