Backed by an order-book of Rs 2,500 crore, a huge bid-book and growing export markets, SAW pipes-maker, Man Industries, is aiming to breach the Rs 2,000 crore turnover mark this fiscal.
“We are confident of achieving a CAGR of 20-25 per cent over the next three to four years. We are eyeing a Rs 2,000 crore-plus turnover in FY 10,” Man Industries’ Senior Vice-President, Corporate Affairs, K G Mantri, told PTI here.
In FY 09, the company which primarily caters to the oil and gas sector clocked a turnover of Rs 1,900 crore and PAT of Rs 47 crore. “We will clock a significant rise in our PAT in FY 10,” Mantri said.
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The company has recently upped its pipes manufacturing capacity from the earlier six lakh tonnes per annum (tpa) to one million tpa comprising of half-a-million tonnes each of HSAW and LSAW pipes.
Man Industries presently has a robust order-book position of Rs 2,500 crore and a bid-book size of Rs 5,000 crore.
The company is focusing strongly on overseas markets and earns 75-80 per cent of its total revenue from these markets with the domestic market contributing only around 20-25 per cent to its total revenue.
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“There are more opportunities in overseas markets.
Margins in the domestic market are low because of unhealthy competition,” Mantri said.
The company’s overseas markets are primarily in the Middle-East, South-East Asia, the US and Africa.
“There is a tremendous growth opportunity in Africa.
India has emerged as a major global hub for large diameter pipes and in the last six-years, India has captured more than 30 per cent of the global export market,” Mantri said.
The company has no fund-raising plans and while it was interested in inorganic expansion, there was no acquisition proposal on its radar presently, he said.