BUSINESS BRIEF
The company is a Tamil Nadu-based manufacturer and supplier of high-quality steel pipes and tubes, catering primarily to industrial and construction applications across South India. Strategically located near Chennai, the facility benefits from strong logistics connectivity and proximity to key industrial and infrastructure hubs.
The business specializes in the production of Mild Steel (MS) pipes, Galvanized Iron (GI) pipes, and structural tubes (square and rectangular), along with customized fabrication solutions. Its products are widely used in construction, fire protection systems, and industrial infrastructure projects.
The manufacturing unit is equipped with advanced high-frequency solid-state welding technology, enabling precision production and consistent quality. The plant operates with a production capacity of approximately 12–15 tonnes per hour, translating to a daily output of 150–200 tonnes.
Products & Services
- Hollow Sections: Mild Steel (MS) square, rectangular, and round hollow section pipes.
- Structural & Industrial Pipes: Fire system pipes, fabrication structures, and gas pipes.
- Stainless Steel Products: SS ERW (Electric Resistance Welded) pipes, slot pipes, square pipes, and structural tubes.
- Galvanized Pipes: GI pipes for durable, corrosion-resistant applications
Additional Information
- Revenue mix:
- 45% Heavy Fabrication
- 30% Precision Machining
- 15% Industrial Equipment
- 10% Other Services
- Strong EBITDA improvement from ~4.8% (FY22) to ~18.6% (FY24)
- Asset-backed business with ₹25 Cr valuation (land, building, P&M)
- Located in SIPCOT industrial zone with strong infrastructure
Proposal
Industry
Industrial goods manufacturing
Sub Industry
Metal Processing and Fabrication (Precision Engineering) & Industrial Machinery & Equipment Manufacturing
Nature of Business
B2B
Sector
Manufacturing (Own Brand)
Reason for sell-off
Strategic Realignment or Pursuing New Opportunities
Location
India
Region
Southern
Open For Dilution
51-75 % (Majority)
Top Customer
Deal Size
INR 13 - 25 Cr
Justification
Asset-backed valuation (~₹25 Cr including land, building, and plant & machinery) 9+ acre industrial land with long-term lease (82 years remaining) Established 14-year operational track record Strong EBITDA growth and improving margins Fully operational facility suitable for immediate scale-up Strategic location in SIPCOT industrial cluster Optional partnership structure reduces entry risk
Business Operation Information
Financial Information |
2025 (in INR Cr) | 2024 (in INR Cr) | 2023 (in INR Cr) |
|---|---|---|---|
Sales |
9.50 | 9.15 | 7.69 |
EBITDA |
|||
PAT |
