§1What this business is
Electrode-quality steel wire is straightened, cut to length and stored. The flux is mixed to a formulation in a dry blender and wet mixer and pressed into cylindrical slugs. The slug goes into the extrusion press while the cut wires are fed from a hopper; the press coats each wire with flux, a conveyor carries the electrodes away, and they are tip-cleaned, baked in an oven, printed and packed. Buyers are fabricators, workshops, construction contractors and hardware dealers.
Capacity: 1,800 MT a year.
§2Is it right for you?
Who it is for
A metallurgist or welding-trade person who can test electrodes and sell to fabricators and dealers.
Who it is not for
Someone without technical knowledge of welding or a way to test weld quality.
Advantages
- Every workshop, fabricator and building site uses electrodes
- A consumable product, so buyers reorder all the time
- Large output from a small team
Drawbacks
- Flux formulation and baking decide weld quality — hard to get right
- Big brands dominate industrial buying
- Steel wire and mineral prices move often
- High investment (₹78.1 lakh)
Skills you need
- Flux formulation and mixing
- Running the extrusion press
- Baking and moisture control
- Weld testing and certification
Why difficulty 4/5: Technical flux recipe, weld testing and strong brand competition.
§3Market
Who buys
- Fabrication shops and engineering workshops
- Construction and structural steel contractors
- Hardware and welding-supply dealers
How it sells
- Welding-supply and hardware dealers
- Direct supply to large fabricators and projects
Good to know
- Electrodes are sold in sealed packets because they must stay dry.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Automatic slug press, 90 MT | — | — |
| Wire straightener | — | — |
| Dry blender, 1 MT | — | — |
| Wet mixer | — | — |
| Steel hoppers and containers | — | — |
| Oven with trolley | — | — |
From: NSIC project profile — Welding Electrodes — private guide — confirm locally
- Core steel wire, 4 mm
- Sodium silicate
- Potash
- Rutile and dextrin
- Iron powder and fluoride
- Starch powder
- Mica
From: NSIC project profile — Welding Electrodes — private guide — confirm locally
Suppliers in Building Business Bazaar
Bengal Ferro-Alloy and Steel Ltd · Kolkata →F.X.P. Minerals · Kollam →Machine Tools England Through Machine Tools India (P) Ltd. · Kolkata →Mysore Iron and Steel Ltd · Jamshedpur →Sooraj Trading Corporation · Indore →Special Machines · Karnal →Weld Crafts (P) Ltd · Bengaluru →
In our raw material database
§5Licences & registration
- Udyam registration
- GST registration
- Consent to establish and operate from the State Pollution Control Board
- Factory licence if your worker count crosses the Factories Act limit
- BIS certification to IS 814 (covered electrodes), which industrial and government buyers commonly ask for — also check the current Quality Control Order list
§6Schemes & subsidies
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
CGTMSE for a loan without collateral; Stand-Up India for SC/ST and women founders. At ₹78.1 lakh the project is above the PMEGP and MUDRA limits.
§7Money
How the investment is worked out: The NSIC profile prints one figure for machinery and equipment plus 3 months' working capital (raw material, utilities and salary): ₹78.1 lakh. It gives no split between the two, and land and building are not included.
Working capital: Working capital for 3 months (raw material, utilities and salary) is inside the ₹78.1 lakh total; the profile prints no separate figure.
Year not printed on the NSIC profile (an older NSIC Training-cum-Incubation Centre sheet) — check current machinery and material prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: EEPC India
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker before shipping.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Poor welds damage the brand fast
- Moisture spoils stored electrodes
- Price war with large brands
- Dust from mineral handling
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working welding electrodes unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Welding Electrodes?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.