Financial Daily from THE HINDU group of publications
Sunday, Jul 17, 2005
Financial Daily from THE HINDU group of publications Sunday, Jul 17, 2005 |
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Corporate
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Outlook Healthy order book, stable input costs to drive Man Ind growth Latha Venkatraman
Mr Ramesh Mansukhani
Mumbai , July 16 A ROBUST order book, stable input costs and increased capacities are expected to drive Man Industries (India) Ltd's turnover two-fold this fiscal. The company is a manufacturer of submerged arc welded (SAW) pipes and coating systems for high-pressure oil and gas applications. "Last year was an abnormal year because input costs were erratic and margins were severely under pressure. This year should be good," Mr Ramesh Mansukhani, Chairman, Man Industries, said. The company's new manufacturing facility at Anjar in Gujarat is expected to result in substantial logistics savings because of its large export orders as well as imports of inputs. "About 75 per cent of our order book of Rs 1,000 crore is for overseas orders. Besides, we import some of the inputs especially high-grade steel. As the ports of Kandla and Mundhra are close to the manufacturing plant, we will save a lot on transportation," he said, but declined from quantifying it. For the year ended March 2005, Man Industries had reported a profit after tax of Rs 19 crore on turnover of Rs 500 crore. This fiscal, the margins should be better as steel prices have edged down and are showing signs of stabilising. Besides, turnover is expected to double on higher production. The Anjar facility would make longitudinally submerged arc welded (LSAW) pipes and helically submerged arc welded (HSAW) pipes. It will push up the company's production capacity to over 2,000 km of line pipe and over 5 million square meters of coating per annum. The company along with its domestic competitors is benefiting from the increase in global spends on pipe laying projects. "Pipelines are the lowest cost of transportation and in the next five years pipeline projects totalling two lakh kms have been identified worldwide. Indian companies should be able to get orders for at least 5,000 km," Mr Mansukhani said. The domestic market is also robust with 25,000 km of oil and gas pipe laying projects.
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