2 weeks ago
MAN Industries bets on overseas expansion amid Gulf pipeline demand
A big Indian company that makes steel pipes wants to grow in other countries over the next five years.
These pipes carry oil and gas, which many countries need.
Countries near the Gulf want new pipelines so their energy can travel safely without passing through dangerous waters.
The company's leader, Nikhil Mansukhani, says they will move machines they already own to other countries instead of building expensive new factories.
This saves a lot of money.
The company already sends most of its pipes to other countries.
It recently bought a pipe factory in Saudi Arabia.
It is also hoping to help rebuild Iran someday if the conflict there ends.
The company expects to earn 30-40% more money this year.
It thinks demand for its pipes will stay strong for many years.
MAN Industries plans aggressive overseas expansion over the next five years, deploying underutilised manufacturing equipment instead of building new plants.
Exports already account for 70-80% of the company's revenue, with Saudi Arabia emerging as a production hub after the acquisition of National Pipe Co. in May.
The company's tender pipeline stands at about ₹24,000 crore, with 70-75% linked to oil and gas and the rest to water infrastructure.
Managing director Nikhil Mansukhani expects 30-40% revenue growth this year, moderating to 25-30% annually over the following four years.
MAN Industries is positioning for a possible Iran reconstruction boom and is on the approved lists of Saudi Aramco, QatarEnergy, Adnoc and Iraq's Basra Oil Co.
- Who
- MAN Industries, an Indian steel pipe maker led by managing director Nikhil Mansukhani
- What
- Announced plans for aggressive overseas expansion to tap rising demand for oil and gas pipeline infrastructure
- Where
- Saudi Arabia and other Gulf countries, plus South East Asia, MENA, North America and Europe
- When
- Over the next five years, with significant growth expected in the current financial year
- Why
- Gulf countries are diversifying energy transportation routes amid geopolitical risks, and a potential Iran reconstruction boom looms
Key facts
- Company
- MAN Industries
- Managing Director
- Nikhil Mansukhani
- Export share of revenue
- 70-80%
- Tender pipeline
- About ₹24,000 crore
- Unexecuted order book
- About ₹4,000 crore, expected to reach ₹5,000 crore by end of financial year
- Expected revenue growth
- 30-40% this year, moderating to 25-30% annually
- Saudi acquisition
- National Pipe Co., acquired in May
- Saudi coating facility investment
- About ₹400 crore, operational by March 2027
Quotes
Nikhil Mansukhani
Managing director of MAN Industries
“"Our goal for the next five years is not going to be through diversification, but through travelling and utilising our own equipment to the fullest."”
livemint.com
Sources
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