Man industries promoted by Rameshchandra Mansukhani was incorporated on March 19, 1988 has its aluminium extrusion plant at Pithampur, MP. Man Industries (India) Limited is the flag ship company of Man Group of UK is a leading manufacturer of large diameter SAW Line Pipes and Coating Systems for high pressure applications like transportation of Oil, Gas and other Petrochemical products.

Company is an ISO 9001, ISO 9002, ISO-14001 and ISO-18001 certified and all its facilities hold valid API Licenses for production of high pressure line pipes for hydrocarbon applications. Company plants are located at Pithampur, MP and Anjar (Kutch), Gujarat. Company commenced its operations with manufacture of aluminium extrusions in 1988; the company's diversification into manufacture of SAW/Spiral pipes in 1994 is presently contributing more to the company's turnover than the aluminium extrusion division.

The pipes division of the company which includes both Saw Pipe manufacturing facility and Spiral Pipe and Coating are also located at Pithampur, MP near to the aluminium extrusion plant. The company has Collaboration agreement with Chr. Haeusler, Switzerland for API-grade longitudinally welded SAW pipes. The SAW pipe division at Pithampur, can manufacture pipes of diameters between 18 inches and 60 inches and thicknesses between 6 mm and 25.4 mm and of lengths upto 12 mtr. Company is eligible to bid for major trunk line projects both in domestic and as well in international level as it has upgraded its facilities to meet international quality standards. Company has world’s most advanced technology in this highly specialized and high priority area. The latest pre stressed 3 Roll Bending Process from Heausler, is being used to manufacture pipes of matchless profile, strength and toughness. The collaborators have given a performance guarantee for the plant in terms of production parameters and adherence to all International Standards including API / NACE.

Products & Services—

Company has manufacturing facility for Spiral SAW Pipes along with facilities for various corrosion preventive coatings on line pipes such as FBE/3 layer Polyethylene Coating, Coal tar Enamel Coating, Internal & external Cement mortar and internal epoxy Lining, Aluminium extrusions. In addition to the above, the facility of a COLD EXPANDING MACHINE is also available at the works. EXPANDER is imported from Romania to meet the mandatory/optional requirements of oil & gas industry. With a state-of-the-art online plate UT Machine, an automated Roll Bending Mill, equipped with CNC & PLC Controls, state of art Internal and External Welding Units, On line real time Radioscopy, advanced CNC Hydrostatic testing, on line X-ray / Ultrasonic M/c. etc., it supply quality and flawless steel pipes confirming to API / NACE international standards, to meet global demand of a large diameter of range from 18" to 60" meant for critical applications.

Recent developments—

Company bagged Rs 13.40 billion orders from Middle East during the current year. The latest international order has been allotted to the Indian company amidst stiff international bidding. The order has to be executed in the current financial year. With the latest order of Rs 13.40 billion, the company’s total order book stands about Rs 20 billion. Company is exploring the possibilities to set up a manufacturing unit in the US at USD 200 million. Company had plans to start the said facility two years back and had even bought the required land. However, the company was forced to postpone the proposal, as seven US and Indian companies entered the market at the same time. Since then, a global recession has further depressed demand. Steel pipe mills also, as a rule, do not operate at more than 60 per cent of capacity. However, with a recovery underway, MIIL’s interest in the US scheme has renewed. Company would look for an investment opportunity of $200 million to produce approximately 300,000 tons of steel pipes of different diameter, gauges and sizes.

Company keeping pace with its progressive role and strong order book positions will make it grow at very sustainable rate in future. At CMP, stock is trading at 9.65 P/E multiple of its FY2011 estimated EPS. We recommend investors to “BUY” “Man Industries” for medium to long-term investment horizon.