Man Industries (India) Limited announced the acquisition of 100% equity stake in National Pipe Company Limited (NPC), Saudi Arabia through its wholly owned subsidiary International Steel Industries Company (MISIC).

Transaction Details

  • Acquirer: International Steel Industries Company (MISIC), wholly owned subsidiary of Man Industries Ltd
  • Target: National Pipe Company Limited (NPC), Kingdom of Saudi Arabia
  • Transaction Type: Acquisition of 100% equity stake
  • Total Consideration: USD 102 million (~INR 1,000 crores)
  • Mode of Financing: Mix of Debt USD 70 million and USD 32 million Equity
  • Regulatory Reference: Announcement under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Target Company Overview (NPC)

  • Business: Manufacturer of HSAW (Helical Submerged Arc Welded) and LSAW (Longitudinal Submerged Arc Welded) pipes
  • Annual Production Capacity: 430,000 MT (250,000 MT HSAW + 180,000 MT LSAW)
  • Pipe Size Range: HSAW OD 20" - 88" (upgradable to 120"), LSAW OD 24" - 60", Wall Thickness 6.4 mm - 45 mm
  • Certifications: Saudi Aramco Approved Vendor List (AVL) since 2005, certified for API 5L Gr. B through X80
  • Manufacturing Capabilities: Fully integrated plants with testing including hydrostatic, ultrasonic, X-ray & magnetic particle testing
  • Key Clients: Saudi Aramco, McDermott, L&T, SAIPEM, Subsea 7, Hyundai E&C, Sapura, Petrofac, Lamprell, NPCC, S.S.E.M.

Financial Information (CY2025)

  • Revenue: SAR 792.7 million (USD 211.4 million)
  • Gross Profit: SAR 214.1 million (USD 57.1 million)
  • Gross Margin: 27.0%
  • EBITDA: SAR 196.7 million (USD 52.5 million)
  • EBITDA Margin: 24.8%
  • EBIT: SAR 164.9 million (USD 44.0 million)
  • EBIT Margin: 20.8%
  • PBT: SAR 162.0 million (USD 43.2 million)
  • PBT Margin: 20.4%
  • PAT: SAR 143.5 million (USD 38.3 million)
  • PAT Margin: 18.1%
  • Tax Rate: 11.4%

Balance Sheet & Liquidity

  • Cash & Bank Balances: SAR 142.5 million (USD 38.0 million)
  • Trade Receivables: SAR 48.8 million (USD 13.0 million)
  • Finished Goods Inventory: SAR 120.0 million (USD 32.0 million)
  • Total Cash & Liquid Assets: SAR 311.3 million (USD 83.0 million)
  • Net Worth: SAR 594.9 million (USD 158.6 million)
  • Debt Position: Zero debt (debt-free company)

Return Ratios (CY2025)

  • ROE: 25.7%
  • ROCE: 29.5%
  • ROA: 22.5%

Orderbook Status

At the time of acquisition, NPC carried an order position of USD 120 million (₹1,130-1,150 crore), with L1 status secured in certain additional orders and a healthy bid pipeline.

Acquisition Valuation Multiples

  • EV/EBITDA: 1.5x
  • EV/Revenue: 0.4x
  • Price/Book: 0.7x
  • P/E: 2.7x

Strategic Rationale

  • Market Access: Immediate entry into Saudi Arabia's regulated O&G supply chain with established AVL status with Saudi Aramco
  • Capacity Scale: 430,000 MT combined HSAW+LSAW adds critical scale; existing NPC + Man Group capacity crosses 1.2M MT
  • Saudi Vision 2030 Alignment: Positioned to capture Kingdom's accelerating investment in energy infrastructure, water transmission, petrochemicals and city gas distribution
  • Integrated Player: NPC combined with MISIC's Dammam coating facility positions MAN as fully integrated, end-to-end pipeline solutions provider in Middle East
  • Margin Accretion: Expected to structurally re-rate consolidated group's margin profile from sub-10-12% to sustainable 15-17% band

Future Plans

  • Planned Expansion: External & internal coating mill with FBE, 3LPE, epoxy coatings capacity addition to serve Saudi pipeline demand
  • Infrastructure Upgrade: Led by MAN Industries post-acquisition
  • Capacity Target: Combined MAN India (1.20+ MTPA) + NPC (430,000 MTPA) = ~1.60+ MTPA capacity positioning among top global large-diameter SAW pipe manufacturers
  • Revenue Projection: KSA operations expected to contribute ~45-50% of consolidated group revenue by 2030

FY2030 Financial Projections

  • KSA Peak Revenue: INR ~4,000 crore with 18-20% EBITDA margin and 12-15% PAT margin
  • India Operations: INR ~4,500 crore revenue with 12-14% EBITDA margin and 6-8% PAT margin
  • Consolidated: INR ~8,500 crore revenue with 15-17% EBITDA margin and 9-12% PAT margin

Disclaimer

The presentation contains forward-looking statements based on management beliefs and assumptions, subject to risks and uncertainties. Financial information is based on available data as of presentation date, with NPC's historical financials subject to audit confirmation. Projected financials represent management estimates and are not guarantees of future performance.