Welcast Steels Limited , a manufacturer of hi-chrome grinding media used in cement, mining, and thermal power plants, has announced the permanent closure of its manufacturing facility in Bengaluru's Peenya Industrial Area. The closure, set to take effect on December 15, 2025, follows a decision made by the company's Board of Directors during a meeting held on October 15, 2025.

Reasons for Closure

The company cited several factors contributing to this significant decision:

1. Outdated technology leading to high production costs
2. Unviable operations
3. Consistent decrease in capacity utilization over recent years
4. Economic unfeasibility of modernizing the facility due to:
   • High investment requirements
   • Space constraints

Financial Impact

The closure of this facility, which has been operational since 1972, will have a substantial impact on the company's finances:

As evident from the table, the Bengaluru plant accounted for the entirety of Welcast Steels' revenue and net worth during the last financial year.

Closure Process

In compliance with Section 25-FFA of the Industrial Dispute Act, 1947, Welcast Steels will observe a 60-day notice period before the final closure. The company has officially informed the BSE Limited of this development, as required under Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) 2015.

Company Statement

In its official communication, Welcast Steels emphasized the long-standing nature of its challenges: "Since last so many years, there has been consistent decrease in capacity utilization. The running of the industrial establishment has become economically unviable."

This closure marks a significant turning point for Welcast Steels Limited, potentially requiring a strategic reassessment of its business model and future operations in the hi-chrome grinding media market.

Welcast Steels Limited , a manufacturer of alloy steel cast grinding media, has announced its financial results for the quarter ended June 30, 2025, along with significant leadership changes at the helm of the company.

Financial Performance

The company reported a net loss of ₹29.42 lakhs for the quarter, showing an improvement from the ₹58.10 lakhs loss recorded in the same quarter of the previous year. However, revenue from operations decreased to ₹2,278.46 lakhs, down from ₹2,436.88 lakhs year-over-year.

Key financial highlights for Q1 FY2026:

Despite the decrease in revenue, Welcast Steels managed to reduce its losses by nearly 50% compared to the same period last year. This improvement can be attributed to a reduction in total expenses, which decreased from ₹2,567.31 lakhs to ₹2,359.62 lakhs.

Leadership Changes

In a significant development, Welcast Steels announced changes in its top leadership:

1. CEO Resignation: Mr. V.V.R. Mohana Rao has resigned from his position as Chief Executive Officer due to health reasons, effective July 31, 2025.

2. New CEO Appointment: The company has appointed Mr. Gangadurai M. as the new Chief Executive Officer, effective August 6, 2025.

Mr. Gangadurai brings a wealth of experience to his new role, with 48 years in the foundry industry. He holds a Bachelor's degree in Metallurgy Engineering and an MBA. Prior to joining Welcast Steels, he served as General Manager - Operations at AIA Engineering Ltd., Trichy, which is the holding company of Welcast Steels.

Company Overview

Welcast Steels Limited specializes in manufacturing alloy steel cast grinding media, with its operations based solely in India. The company is a subsidiary of AIA Engineering Limited, which holds 74.85% of Welcast Steels' share capital.

The financial results were approved by the company's Board of Directors at a meeting held on August 6, 2025, and have been subjected to a limited review by the statutory auditors.

As Welcast Steels navigates through challenging market conditions, the appointment of an experienced industry veteran as CEO could potentially bring new strategies to improve the company's financial performance in the coming quarters.