I) Top clients are all from re coating & replacement of damaged electrodes from chlor alkali industry in india, viz GACL, DCW, DCM Shri Ram, chemfab alkali & Grasim, Aditya Birla chemicals. However as a matter of policy, names of clients are not disclosed.
There is pricing power, coz of technology & lack of competitors. Denora technologies provide, durability ( long life) of electrodes along with high or optimum output ( production of chlor alkali is maximized) with minimum energy consumption.
Of there are several small desi competitors, doing this work, for small scale chlor alkali producers, but virtually all major chlor alkali manufacturers in india, have AMC with Denora India for re coating & replacement of damaged electrodes.
Prospects of this division is linked to chlor alkali industry in india. When there is demand for chlor alkali, with producers running multiple shifts, life of electrodes gets reduced & needs Re coating & replacement, conversely in a situation of glut or low demand, re coating orders are delayed.
Again, there is economies of scale in operation. When there is surge in demand for re coating, economies of scale comes into play, & profit margin goes substantially higher, when there are sparse orders, operating costs are substantially higher & not viable. Therefore the company has a habit of bunching or accumulating orders & doing the work, when economies of scale are obtained. However emergency orders are attended immediately, even in sparse season, but then the operations are not viable for Denora India.