### **Overview** Manaksia Coated Metals & Industries Ltd. (MCMIL) is a leading Indian manufacturer and exporter of high-performance coated metal products, specializing in **Pre-Painted Galvanized Steel (PPGI/PCM)** and **Plain Galvanized Steel (GI)**, with an expanding focus on **Alu-Zinc coated steel**. Established in 2010 and headquartered in Kutch, Gujarat, the company operates a technologically advanced manufacturing facility strategically located near **Kandla and Mundra Ports**, enabling efficient logistics for domestic and international markets. MCMIL serves diverse sectors including **construction, automotive, home appliances, FMCG, HVAC, refrigeration, and general engineering**, with a growing emphasis on high-margin niche applications such as pre-engineered buildings, cold storages, bus bodies, and architectural facades. The company exports to **44 countries** across Europe, Africa, the Middle East, and Latin America, with exports accounting for over **70% of operational revenues in H1 FY26**, and is now strategically expanding its footprint in premium European markets. --- ### **Strategic Product & Business Model Shift** MCMIL is executing a deliberate shift from commoditized steel products toward **higher-margin, value-added coated steel**, particularly **pre-painted Alu-Zinc**, driven by the following strategies: - **Revenue Mix Transformation**: - Pre-painted steel coils accounted for **over 74% of total revenue in H1 FY26** (₹380.20 crore out of ₹470.11 crore), up from 78% in FY24. - Revenue from pre-painted steel grew from **₹438.60 crore in FY23 to ₹582.21 crore in FY25**, while galvanized steel declined from ₹180.42 crore to ₹170.01 crore. - Q1 and Q2 FY26 saw pre-painted steel contribute **₹182.98 crore and ₹197.21 crore**, respectively, reflecting sustained momentum. - **Back-to-Back Business Model**: Over 80% of MCMIL’s operations are **hedge-protected against commodity price fluctuations**, minimizing raw material cost volatility. The company maintains long-term contracts with **OEM clients**, including global leaders such as **LG, Whirlpool, and St. Gobain**. - **Niche Market Focus**: MCMIL has pivoted to **specialized, high-growth end-uses** such as HVAC systems, refrigeration units, home appliances, clean rooms, and modular construction, commanding **premium pricing and improved margins**. --- ### **Capacity Expansion & Technological Transformation** MCMIL is implementing a **three-phase capex program** to scale capacity, enhance product mix, and strengthen backward integration: #### **Phase 1 (FY25–FY26)** - **Alu-Zinc Coating Line Conversion**: - Upgrading the existing galvanizing line to produce **100% Alu-Zinc coated steel**, increasing capacity from 132,000 MTPA to **180,000 MTPA** (36% increase). - One of only **four Indian producers** of Alu-Zinc, a product with **4–6x superior corrosion resistance** and **3x longer lifespan** vs. conventional GI. - **Captive Solar Power Plant (7 MWp)**: - Expected to reduce grid power dependency by **50–55%**, lowering energy costs to **₹2–3/unit** (vs. ~₹9 grid cost), improving EBITDA and enabling **"green steel" branding**. - **New Coil Slitting Line (30,000 MTPA)**: - Targets customization needs of **OEMs in white goods and automotive** industries, enabling precision cuts and improved quality. #### **Phase 2 (Early FY27)** - **Second Color Coating Line (CCL-2)**: - Adds **150,000 MTPA capacity**, increasing total color coating output to **236,000 MTPA** (over 170% growth). - Equipped with **2-coat-2-bake system, RTO ovens, and 3-color printing** capability for **wood, marble, and custom finishes**. - Designed for **appliance-grade coatings** with paint systems: **RMP, SMP, SDP, and PVDF**. #### **Phase 3 (FY27/FY28)** - **Backward Integration into Cold Rolled Steel (CRM Complex)**: - **300,000 MTPA Hitachi 6Hi Cold Rolling Mill**, supported by pickling line, ARP, slitter, and edge trimmer. - Will reduce input costs and strengthen gross margins through **vertical integration**. #### **Overall Impact**: - Total coated steel capacity: **86,000 → 236,000 MTPA** (+174%). - Total steel production capacity: **108,000 → 300,000 MTPA** (~300% expansion over 3 years). - Expected to drive **~50% YoY revenue growth** and transition MCMIL into a top-tier Indian player in **value-added flat steel**. --- ### **Product & Market Advantages** - **Alu-Zinc Steel**: - **Premium product** with 55% aluminum in coating, offering **40% lighter coating weight**, **3–4x longer life**, and **up to ₹6,000/ton premium pricing**. - In high demand for **coastal, industrial, and high-humidity environments**; ideal for **pre-engineered buildings, solar racks, and architectural facades**. - Domestic demand growing at **~15% CAGR**, with limited domestic competition. - **Pre-Painted Alu-Zinc Applications**: - Roofing, wall panels, appliance casings, bus bodies, signage, guardrails, and false ceilings. - **Heat-reflective, anti-fingerprint, low-VOC coatings** gaining traction in **eco-friendly construction and premium appliances**. - **Proprietary Brands**: - **Zingalvo (GI)**: High corrosion resistance and surface quality. - **Singham (GC Sheets)**: Affordable, durable corrugated sheets. - **ColourStrong (PPGI)**: ISO 9001:2008 certified, known for vibrant, durable finishes. --- ### **Export & International Strategy** - **Export Presence**: 44 countries, with **strong traction in Europe (Germany, France, Italy, Ukraine), UAE, Brazil, Africa**. - **Europe as Growth Engine**: - Exports accounted for **70% of H1 FY26 revenues**. - Major **$24 million (₹200 crore)** 12-month contract secured in FY25 for supply to Europe. - Export order book stood at **₹320–350 crore** (Nov 2025), significantly above historical norms of ₹175–200 crore. - Strategic shift from **spot sales to long-term partnerships**, enhancing predictability. - **Competitive Edge**: Proximity to **Mundra and Kandla ports** reduces freight costs and turnaround time. **Import safeguard duties (19.5% total) on Chinese PPGI** are protecting Indian producers and boosting export opportunities. --- ### **Sustainability & Digital Transformation** - **Green Manufacturing**: - **7 MWp solar power plant** will cut carbon footprint and improve EBITDA. - **Zero-discharge infrastructure**, effluent treatment, and energy-efficient RTO-based coating lines. - **Digital Initiatives**: - Implementation of **MES (Manufacturing Execution System)** and **CRM platforms**. - Enable **real-time production monitoring, data-driven decisions, predictive maintenance, and enhanced customer engagement**. - Investments in **Level 3 automation, AI-driven systems**, and digital ordering platforms to serve OEMs efficiently. --- ### **Financial & Operational Highlights** - **Revenue**: ₹790.87 crore in H1 FY25 (+5.99% YoY). - **EBITDA Margin**: Currently ~7.7% (₹6,300/ton), projected to **rise to 10.5–11.5% (₹11,000/ton)** post Alu-Zinc transition. - **Capital Efficiency**: - Raised **₹135 crore** through preferential equity and warrants in FY25 (no long-term debt). - Funded capex with **strong balance sheet and retained earnings**. - **Sales Volume Growth**: - Total volume: **74,377 MTPA (FY23) → 102,174 MTPA (FY25)** (+37%). - Export volumes: **13,729 MTPA (FY23) → 35,837 MTPA (FY25)** (+160%). - **Domestic Demand Drivers**: - India’s per capita steel consumption expected to double (86.7 kg → 160 kg by FY31). - 9–10% steel demand growth in FY26 backed by **infrastructure spending, PLI schemes, and FDI**. --- ### **Additional Business Segments** Beyond steel, MCMIL operates diversified businesses under the **Manaksia Group**: - **Ultramarine Blue Powder (Robin Blue)**: Contract-manufactured in **Bhopal** under 100% buyback with **Reckitt Benckiser**, used as an optical brightener in detergents and paints. - **Household Products**: - Mosquito repellent coils (Green, Red, Citronella), vaporizers, and aerosols. - Plants in **Bhopal, Guwahati, and Hyderabad**. --- ### **Management & Competitive Positioning** - **Leadership**: Management team with **100+ years of combined experience**; key executives with steel industry and e-commerce expertise (e.g., Mr. Rajendra Kumar Lodhi). - **Differentiators**: - **Agility & customization** for low MOQs, fast delivery, and special finishes. - **Niche focus** unattractive to large integrated players. - **Strong OEM relationships** and embedded supply chains. - **Logistical advantage** and **energy cost competitiveness**.