Man Industries Expects 30-35% Revenue Growth From Existing Facilities In FY26, Says MD Mansukhani
The company is currently undertaking two major greenfield expansions—one in Saudi Arabia and another in Jammu and Kashmir—with both facilities expected to go live by the third quarter of FY26.
Steel pipe manufacturer Man Industries Ltd. is eyeing a strong growth trajectory despite challenging times during the financial year ending March 2025.
The company expects a 30-35% rise in revenue from its existing facilities in the next financial year, with the momentum continuing into 2026-27, where growth could touch 40%, according to Managing Director Nikhil Mansukhani.
“FY27 is a step-up year. FY25 was slightly flattish because steel prices were corrected by almost 20-25%. For FY26, we are looking at almost 30-35% growth from the existing facilities and the projects at hand. FY27 would be a big step up, between 30-40%, of our top-line growth with both new facilities coming online,” Mansukhani told NDTV Profit.
The company is currently undertaking two major greenfield expansions—one in Saudi Arabia and another in Jammu and Kashmir—with both facilities expected to go live by December. The Saudi project entails a capital expenditure of Rs 600 crore, while the Jammu and Kashmir unit is pegged at Rs 550 crore, bringing the total investment to Rs 1,100-1,150 crore.
Explaining the Saudi expansion, Mansukhani highlighted a strong long-term demand and high import duties that make local presence crucial.
“Saudi Arabia has a new law in which they're charging 20% on all imports. On top of it, when we ship large-diameter pipes from here, we incur freight costs of almost $100 to $200 per tonne," he said, adding, "All the Saudi players, whether competitors or local manufacturers, are booked out for the next 2-3 years. We see a large demand in Saudi Arabia for at least seven to eight years. The facility will be operational by Q3 FY26.”
The Jammu and Kashmir expansion, on the other hand, is driven by government incentives under the New Central Sector Scheme (NCSS), making it a financially attractive proposition, the top executive noted.
“Under the NCSS grant, we are getting almost three times our machinery investment, plus a 6% interest subsidy on bank borrowings. Power costs, which account for nearly 70% of operational expenses, are also significantly lower in Jammu at Rs 4.5 per unit, compared to Rs 9 in Gujarat, where we initially planned the plant. It’s a major cost advantage, and transportation costs will remain manageable,” Mansukhani explained.
According to Mansukhani, even without these incentives, the company expects margins of 18-22% at the Ebitda level. Factoring in government grants, the project’s internal rate of return translates to a payback period of just three years, making it a high-return investment.
Shares of Man Industries ended Friday’s session 1.1% higher at Rs 267 on the NSE, even as the benchmark Nifty 50 slipped 0.31%.
