MMP Industries - SME exchange to NSE

MMP Industries manufactures atomized aluminium power (AAP), Pyro & Flake aluminium powder, aluminium paste, aluminium foil, aluminium conductors and some other products too where aluminium is the main raw material

It’s products are used in multiple industries like paints, mining, pigments, pesticides, explosives etc

The company has recently moved out from the SME platform and is now listed on the NSE


  • RM prices are passed on almost immediately, i.e. 10-15 days. It is basically an aluminum converter & processor
  • 26% JV with Toyal (Japan) - commenced in Feb 2018. It is the only tie-up that Toyal has worldwide. This capacity is in excess of its capacity in china, japan & usa put together. This JV might also help MMP market its own products through Toyals worldwide distribution
  • Market leader in its niche categories = 60% in explosives, 70% in AAC Blocks, 70% in pesticides
  • Value migration from traditional bricks to AAC Blocks will occur at a quicker pace once real estate picks up


  • Company is bit of an unknown entity. We don’t have a track record of its past performance across business cycles
  • It’s subsidiary, Star Circlips (26% holding) makes auto fasteners, the performance of which is impacted due to the auto slowdown

Promoter holding is at 73%. Son & daughter in law are both into the business. Old bridge’s Kenneth Andrade has a decent stake in the company

The company is debt free, ROE’s have been 15%+ and profits have grown very well in the past five years. IPO money has been used to put up capacity which should come on stream very soon.

Views Invited

Disclosure: Invested


What is their market share and competition scenario?
Japanese companies would only do JVs with very able and competent companies.
Makes and interesting case to investigate further.

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I have mentioned the market share in my post above. As mentioned it is 60% in explosives, 70% in AAC Blocks, 70% in pesticides
As far as competition goes - paraphrasing what the promoter said in an interview
* Entry barrier is our industry is underestimated - People put up capacities but realize they don’t get customers. Our strength is that we work very closely with ours clients to customize, provide variety, quality and service, hence providing a very specific and cost effective overall solution
Competition is primarily from unorganized players

Also some of their clients are Siporex, HIL, Ultratech (for AAC Blocks), UPL & Excel industries (for aluminium phosphides), Solar industries & gulf oil (for explosives) and Coal India. They claim to have not lost clients and have very old relationships with all. Also the new announcement with regards to privatization of coal production, might be a positive for them since imports will reduce which will mean them possibly tying up with new Indian players

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Business model is good
Independent directors are also reputed company board members
SSGR is 30%-40% which is very good
Found nothing suspicious in AR ( Apart from some promoters are paid under the heading of “Professional Legal Fees”)
Future prospects are good
Overall business seems to be good.

As all products are aluminium based, Anyone who understand Aluminium commodity cycles plz provide your valuable insights.

Anyone knows or talked to management will be great, plz put your remarks.

Not Invested

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