Man Industries (India) Limited

Man Industries (India) Limited

CMP : 56.6 FY 2016 EPS 14.5
Company website : MAN INDUSTRIES (INDIA) LTD.

Man Industries (India) Ltd. is a member of the Man Group of India Incorporated in 1988.

It is a leading manufacturer and exporter of large diameter Carbon Steel Line Pipes for various high pressure transmission applications for Gas, Crude Oil, Petrochemical Products and Potable Water. The Company has state-of-the-art manufacturing facilities for LSAW & HSAW Line Pipes and also for various
types of Anti-Corrosion Coating Systems.

MIIL has state-of-the-art manufacturing facilities located at Anjar in Gujarat and Pithampur in Madhya
Pradesh spread over 200 acres of land for Longitudinal Submerged Arc Welded (LSAW) & Helically Submerged Arc Welded (HSAW) Line Pipes and also for various types of Anti-Corrosion Coating Systems.

The total installed capacity is upto 1 million tonne - 50% in LSAW and balance 50% in HSAW are
located at Anjar in Gujarat and Pithampur in Madhya Pradesh. The plants are situated at prime strategic locations in the vicinity of the ports. MIIL has 7 MW windmills in Gujarat.

Historical Data in a nutshell

Key Concern

442 Cr Debt equal to a debt equity ratio of 0.91

Key Risks

Decline in crude prices furher could hamper any potential pipeline capacity expansion and E&P projects denting demand for pipes.

, any volatility in steel prices may affect the company’s profitability as HR coils account for 70% of the total cost of raw materials.

Decline in plate prices used to manufacture LSAW plates could erode the cost competitiveness of HSAW pipes, whose capacity has been expanded.

Any delay in order execution could affect MAN’s earnings.

Disclosure : Added a Tracking Position


any update on Man industries ? why last few quarter performance deteriorate any news ? however in last one month price is appreciated , any good news ?

Any landbank held by maninfraprojects in Mumbai?

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Anyone can explain Man Industries(MIIL) and Man Infra(MIPL) De-Merger saga?
As per my understanding …

  1. MIIL share holders will get MIPL shares in the ratio of 1:1

  2. It doesn’t have any effect on MIIL valuation after May 6th


Ratio is 1: 8 I.e for every 8 share of Man industries,1 share of Man infra will be issued.

Is there any update on the De-Merger on Man Industries?

As per con call yesterday:

  1. Good news can be share in next 2 to 3 weeks regarding corporate action for marino shelter.

  2. Order book of 1400cr will be executed in next 2 qtr or most FY21.

  3. Margin should improve from here.

  4. revenue of 3500 to 40000 cr. can be achieved without any capex.

  5. No payment default foreseen from customers, as all customers are NAVRATNA like IOC, BPCL, GAIL, HPCL etc.

  6. Looking for including sizes of pipes (which they can not produce currently) in their portfolio which caters to city gas networks.

Disclosure: Invested.


With market cap of approx 350 cr. Received new export order of 405 cr. Order book of 1800 cr.
Things are getting interested here.

Disclosure: invested


@Prasadwakchaure Found any info?

@chikspat Why do you think it is interesting? What’s new/unusual/big about it?

  1. Revenue increase without capex can lead to kick in operation leverage.
  2. De merger of marino shelter can lead to value unlocking of land parcel.
  3. In current situation, where new projects are very less, new order of 405 cr provide support in terms of revenue visibility. Once cycle turns and new projects start, increase in order can further boost top and bottom line.
  4. Nal se Jal can be a good opportunity site, where cemented pipes are used, which have higher margin.

Risk: They always have something as forex gain/loss. This part many times ruins/make results. Need a hedging stratergy.

Disclosure: Invested.


Recent order approx 370 cr. for domestic companies is good for company with market cap of 415cr. Total order book is approx. 1800 cr.
FINALLY, Management was able to walk the talk and de merger announced.
However I do not have any idea of what Man Infraprojects Ltd. Does anybody know how this is up to in terms of what they do? revenues, etc?

Disc: Invested.

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Concall highlights:
Orderbook of 1600 cr. executed over next 8 months.
600 cr revenue per quarter in FY21.
Pledge shares with SBI will be released soon as it was for project guarantee.
Interim dividend of 2rs/share. First time interim dividend declared.
Promotor will use warrants after having regulatory approvals. Increase promoter holdings.
No capex plan for capacity addition. 90% revenue from Oil and gas, 10% revenue from water segment.
Marino shelter, having 6 acre land parcel in talks with developer for development have income from rent etc.
MAN INFRA, List of share holder given to court to push them to issue man infra shares. Listing can happen in this FY.
New compliance officer appointment.
Many times used word: will reward share holders.

Need help:
They are paying approx. 10 cr. per quarter for bank credit lines of 1000-1500 cr. Is it normal?
When an investor suggest, buy backs are more tax efficient, they said we consider, but we can not comment more.

Disclosure: Invested.

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Management Interview held on 29th October, 2020
Key Higlights:

  • The growth will continue and the next quarter numbers will be better than this.
    • The first quarter was affected by the COVID, the second was free from COVID and the growth will continue in the next three to four quarters.
    • Growth will be there in both, the turnover and the profitability.
  • Our order book is very comfortable for the third and fourth quarter.
  • Seeing the kind of work that is coming to our country in the oil and gas sector and on the export front the growth will continue, therefore we do not need any new loan at present.
  • The 41% pledged shares has been released.
    • The company took a loan from the State Bank of India in form of working capital, particularly for a project of IOCL.
    • The loan has been repaid and maybe in the next four to five days, the holdings will be released. No equity has been pledged in the market at present.
    • We will give a declaration in the stock exchanges as soon as they come back to us.
  • We have around 240 Cr cash at present.
    • Shareholders have been rewarded in the recent past and they will be rewarded in the future as well.
    • We have announced a 40% dividend this week, which is Rs 2 per share, which is interim for this year. We will reward further.
    • The company will increase the range of value-added products and the cash will be utilized there. Going ahead, it will benefit the shareholders more.
  • Orders worth Rs 1,200-1,300 crore of this Rs 1,600 crore will be completed in the next two quarters.
  • The remaining Rs 400-500 crore is an order for the next year and we have participated in the bids worth Rs 16,500 crore, which is in India as well as in the export market.
  • Our 60-70% business is related to exports.
  • Our order book is quite comfortable for the year that will start after March 2021.

Man Industries Ltd. AR 2020 notes

  • Manufacturing of LSAW pipes, spirally welded pipes and coating systems.
  • Man Industries Ltd. is one of the largest Manufacturers and Exporters of LSAW and HSAW pipes in India with a total installed capacity of 1 million tonnes. MIL has two plants: one plant in Anjar, Kutch District of Gujarat and other in Pithampur, Madhya Pradesh. Anjar plant facilitates easy transportation to two major ports Kandla and Mundra as well as provides good connectivity to the road network. Both facilities put together spread across ~150 acres of land. The Company’s facilities hold internationally accepted quality standards laid down by the American Petroleum Institute (API) which is a mandatory requirement to produce high pressure line pipes for hydrocarbon applications.
  • Products
    • Longitudinal Submerged Arc Welded Pipes (LSAW): Diameters ranging from 16” to 56”; maximum Pipe Length12.20 meters, and a total capacity of 500,000 tonnes p.a.
    • Helically Submerged Arc Welded Pipes (HSAW): Diameter ranging from 18” to 130”, maximum Pipe Length-18 meters, and a total capacity of 500,000 tonnes p.a.
    • Coating: Single layer FBE, Internal blasting & painting, Coal tar Enamel
  • Clients
    • Domestic Clients: GAIL, IOCL, HPCL, BPCL, ONGC, Reliance, Adani, EIL, BHEL, L&T, Petronet India Ltd. and many more.
    • International Clients: SHELL, Kinder Morgan, Energy Transfer USA, Kuwait Oil Company, Hyundai Engineering & Construction Ltd., Petro Bangla - Bangladesh, NPCC-Abu Dhabi, PETROBRAS-Brazil and many more.
  • Net sales and other income for the standalone entity decreased to ₹ 1,77,561 lakhs from ₹ 2,23,601 lakhs in the previous year with decrease of 20.59%. The operating profit (PBDIT) witnessed a decrease of 8.58% from ₹ 19,738 lakhs in 2018-19 to ₹ 18,046 lakhs in 2019-20. The profit after tax (PAT) showed a decrease of 5.93% at ₹ 5,398 lacs from ₹ 5,738 lakhs in the previous year.
  • Good to see top 10 employees of the company drawing handsome salary and all are outsiders.
    Mr. Ashok Gupta - CFA - Rs. 94.74 lac
    Mr. Rajat Gupta - President Marketing - Rs. 87.91 lac
    Mr. Rajat Singh Bhatia - VP Operations - Rs. 59.31 lac
  • Forex Earnings - Rs. 410 cr
    Forex Outgo - Rs. 919 cr
  • Oil & Gas Industry
    • Government proposal for Expansion of National Gas grid to 27,000 km from 16,000 km generates an additional opportunity of 11,000 km pipeline worth ~ Rs 63,800 Cr out of which the opportunity size for large diameter pipes holds to ~ Rs 47,800 Cr. This indicates higher demand for companies like us.
    • There are also policy measures and pricing reforms being taken to boost the use of natural gas. The gas grid expansion, coupled with the liberal policies introduced over the last few years, will revive investor confidence in the upstream sector, leading to more investments and opportunities.
  • Water Sector
    • Har Ghar Jal scheme will give a major boost to large diameter Line pipe industry in the near to medium term as the. The total Planned Government spending counts to Rs. 3.5L Cr on this scheme in next 5 years, out of which the opportunity size for large diameter pipes would trickle down to ~ Rs. 1.4Lcr.
    • National RIver Linking - The total Planned Government spending is estimated at Rs. 5.6L Cr out of which the opportunity size for large diameter pipes is ~ Rs. 1.1LCr.
  • Covid Impact
    • Towards the end of the year, your Company’s operations were impacted due to the COVID-19 Pandemic. As per the directives of Government, both our manufacturing were shut down as India went into lockdown on 25th March. Subsequently, after restrictions were lifted, we started our operations from 15th April in a phased manner and have been following mandatory social distancing/ sanitization guidelines.
  • Audit Qualification
    • Contravention to Indian Accounting Standard Ind AS 110: Consolidated Financial Statement. Financial Statements of Merino Shelters Private. Limited., wholly owned Subsidiary have not been consolidated.
    • During the year the holding company has paid excess managerial remuneration of Rs. 335.75 lakhs in accordance of provision of section 197 read with schedule V to the Companies Act 2013.
  • Other Points
    • During the year, your company became the first Indian company to export 80-inch diameter 18-mtr-long pipe with 24 mm thickness for a prestigious water sector project opening up new global opportunities.
    • Tax disputes totalling Rs. 50.67 cr.
    • Rs. 77.95 cr of Non Current Advances under dispute.
    • Bad debts write-off of Rs. 8.93 cr in P&L.
    • Variation in Raw Material Prices: The Company maintains a back to back Raw Material arrangement with the supplier and quotations are taken at the time of tendering for the order.
    • Company manages the forex risk through booking of forward contracts in the range of approximately 50% of our projected sales and also the company enjoys natural hedge in the form of raw material imports
  • Disputes and Penalties from Secretarial Audit Report
    • There are disputes between the promoter groups pending adjudication before various judicial authorities regarding the title/ownership of the shares. Further, the said dispute, regarding the right to receive dividend on such shares between the promoter shareholders group has also been observed by NCLT and NCLAT recently. In view of the same, the Company has deposited and kept in abeyance the final dividend payable to one of the groups for the FY 2014-15, 2015-16, 2016-17,2018-19 and 2019-20 (interim dividend) in the unpaid dividend account with ICICI Bank and for the FY2017-18 with IndusInd Bank.
    • The Company had preferred an appeal before Securities Appellate Tribunal (SAT) against the order passed by SEBI in the matter of enquiry proceedings conducted against the Company and its officials, wherein SEBI has passed an order (SEBI order No. ASK/AO/62/2014) dated March 28, 2014 imposing penalty of Rs. 25,00,000 (Rupees Twenty Five Lacs only) jointly and severally on the Company, some of its Directors and erstwhile Compliance Officer in terms of Section 15 HB of the SEBI Act for charge of alleged violations of Regulation 12 (2) and (3) read with Clause 2.1 of the Schedule II of PIT regulations for delay in disclosure of price sensitive information to the exchanges. As per the information provided by the officers of the Company, the Company has received an order of SAT dismissing the said appeal. The Company has preferred an appeal to the Supreme Court against the order of SAT.
    • The SEBI vide its order No. Order/BD/VS/2019-20/5246 dated 30.10.2019 has imposed a penalty of Rs. 5 Lakhs on the Company for alleged violation of non-disclosure by the Company under Reg. 7(2)(b) of SEBI (Prohibition of Insider Trading) Regulations, 2015, in respect of trading in the Shares of the Company by JCM Promoter Group of the Company. The management of the Company has represented that the Company has preferred an appeal before Securities Appellate Tribunal (SAT) against the said SEBI Order and has refuted all the alleged violations. The aforesaid appeal is pending before SAT.
    • The SEBI vide its order dated 21.12.2018 has imposed a penalty of Rs. 10 Crores, payable jointly and severally, on three promoters of the Company viz, Mr. Nikhil Mansukhani (belonging to RCM Group) and Mrs. Anita Mansukhani and M/s JPA Holdings Pvt. Ltd (both belonging to JCM Group) in respect of acquisition of shares of the Company and allotment of shares to them pursuant to conversion of warrants during the period June 01, 2010 to September30, 2010, in violation of the provisions of Regulation 11(1) read with 2nd proviso to Regulation 11(2) the SAST Regulations, 1997 resulting in the shareholding of the promoters exceeding the threshold limit of 55% without complying with provisions of the SAST Regulations. The Management of the Company has represented that there are two promoter Groups in the Company RCM Group and JCM Group. The two promoter groups have been into legal disputes at various Forum. It was further represented by the management that entities belonging to both the promoter groups were aware about the issue and allotment of the warrants but the threshold was breached due to undisclosed acquisition of Shares by Mr. J.C. Mansukhani of the JCM Group. Mr. Nikhil Mansukhani, promoter (belonging to RCM Group) has preferred an appeal before Securities Appellate Tribunal (SAT) against the said SEBI Order. The aforesaid appeal is pending before SAT.

Harshit Goel


Over hang on MANIND is family dispute among promoters. If MANIND manage to issue and list Man infrastructure shares as said in recent stock exchange filing. It will can be re rated. Marino shelter project commencement with developer can be additional good news.
Though Business prospect looks promising on international orders, gas pipe lines and water pipe lines, re rating will only happen when investor get confidence on promoters.

Disclosure: Invested


Doing some basic calculations at the end of september quarter (with near debt free status)
a) Cash equivalents = 238 cr
b) Company is expected to continue current performance for next 3-4 quarters
Total profit expected over next 4 quarters (by extrapolation) = 27 * 4 = 108 cr
c) Approx value of Depreciation = 12 * 4= 48 cr

So total cash in hand at the end of 4 quarters would be 238+108+48=394 cr.
Current market cap is around 400 cr.

Isn’t this company available literally for free at current valuations?


Following developments

  1. On concall management said many times that they want to reward shareholder. My guess is that after one level, cash/money do not matter much so promoters want to earn reputation, credit of good company, may be they want to show to their relatives (family dispute) that, market values us as good promoters.
  2. Subscribed to warrants as declared.
  3. Outlook revised to positive.

All in all looks company is trying best to uplift the image and reward share holders. Of course business also is on good footing. Here we can have many triggers waiting with good earning growth with image uplift

Disclosure: Invested


Do they have already allotted Shares of Man infra?