Madhav Copper Limited (MCL), a prominent entity within the **Madhav Group**, is a specialized manufacturer of high-purity copper products and advanced winding wires. Headquartered in **Bhavnagar, Gujarat**, the company operates a world-class manufacturing facility with **ISO 9000:2015, ISO 14001:2015, and ISO 18001** accreditations. The company is currently undergoing a strategic transformation, transitioning from a traditional metal manufacturer to a technology-driven enterprise. In **March 2026**, the Board approved a rebranding initiative to change the company name to **M Tek Copper Limited**, signaling a pivot toward technical excellence and next-generation industrial applications. --- ### **Specialized Product Portfolio & Metallurgical Standards** MCL operates in a single business segment (Ferrous and Non-Ferrous Metal products), utilizing **100% LME registered grade ‘A’ copper cathode** and **99.997% pure ETP and OFC grade copper**. Its products are engineered for high-speed **automatic coil winding** and **CNC machines**. | Category | Specific Products | | :--- | :--- | | **Primary & Semi-Finished** | **Copper Rod**, **Oxygen Free Copper Rod**, **Bare Copper Wire**, **Copper Strips** | | **Fabricated & Profiles** | **Copper Bus Bars**, **Copper Profiles**, **Fabricated Components** | | **Insulated Conductors** | **Enameled Copper Wire**, **Paper Covered/Insulated Conductor**, **Fiberglass Copper Conductor** | | **Specialized Winding** | **Poly wrap submersible winding wire** | **Quality Control Infrastructure:** * **Oxygen Control:** Maintains oxygen content at **< 5 ppm** using dedicated **Oxygen Analyzers**. * **Precision Testing:** Utilizes PC-based equipment for **Dielectric Dissipation Factor (Tan d)** measurement and **Spectrometers** for metallographic analysis. * **Mechanical Integrity:** Employs **torsion tests** to ensure flawless copper rods for downstream processing. * **International Compliance:** Products meet global standards including **IS, IEC, NEMA, BS, ASTM, EN, and JIS**. --- ### **Operational Infrastructure & Capacity Expansion** The company’s manufacturing works are located at **Plot No. 58/B, Survey No. 346-47, Nr. Kobdi, Bhavnagar**. Recent capital expenditure has significantly enhanced the facility's value-added capabilities. * **New Copper Furnace:** Recently commissioned to enable the production of **Oxygen-Free Copper Rods** and **Copper Bus Bars**. * **Technological Upgrades:** Ongoing investments in **rolling mills**, **extrusion lines**, and upgraded **casting technology**. * **Energy Efficiency:** The company monitors power consumption as a critical operational metric. **Energy Consumption Metrics:** | Metric | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | | **Electricity Units Consumed** | **957,750** | **118,655** | | **Total Power Cost (INR)** | **99.28 Lakhs** | **26.11 Lakhs** | | **Average Rate per Unit (INR)** | **10.37** | **22.01** | --- ### **Strategic Growth Pillars & Market Positioning** MCL is positioning itself to capitalize on a projected **5% global CAGR** and a **7%–8% domestic growth rate** in copper demand, driven by the global energy transition. * **Sector Diversification:** Targeting high-growth industries including **Electric Vehicles (EVs)**, **Renewable Energy**, and **Green Hydrogen**. EVs require **4x more copper** than internal combustion engines. * **Digital Transformation:** Implementing **ERP, MES**, and real-time production monitoring to optimize costs. * **Global Footprint:** Expanding export reach into the **Middle East, Africa, and Southeast Asia**. * **ESG Integration:** Focusing on the **Circular Economy** by increasing **copper scrap procurement** and adopting **renewable energy** at select units. --- ### **Supply Chain & Related Party Ecosystem** MCL leverages the **Madhav Group’s** ecosystem for raw material security and operational support through arm's length transactions. * **Madhav Steels / Madhav Industrial Corporation:** Key partners for the purchase and sale of **copper scrap** and ship-breaking activities. * **Transaction Limits:** Shareholders approved related party transactions with 'Madhav Steels' for an aggregate value not exceeding **Rs. 100 Crores** for the **2025-26** period. * **Backward Integration:** Exploring strategies to secure raw material access and mitigate dependence on imports. --- ### **Financial Performance & Recovery Trajectory** Following a period of disruption where revenue fell to **zero in FY 2022-23** due to external investigations, MCL has demonstrated a sharp recovery. | Metric (₹ in Crore) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :---: | :---: | :---: | | **Turnover** | - | **35.50** | **0.00** | | **Profit Before Tax (PBT)** | **3.45** | **1.16** | **(5.27)** | | **Net Profit After Tax (PAT)** | **4.69** | **1.23** | **(4.41)** | | **Reserves and Surplus** | **32.14** | **27.45** | - | **Capital & Debt Profile:** * **Profitability:** Achieved **66% YoY growth** in net profit in **FY 2024-25**. * **Banking Facilities:** Maintains working capital facilities with **Bank of Baroda** and **Bank of India**. * **Asset Security:** Term loans are secured by **Plant & Machinery** and **Factory Buildings**. * **Dividend Policy:** Currently **retains all earnings** to fund expansion; no dividends declared recently. --- ### **Risk Factors & Regulatory Environment** MCL operates in a high-sensitivity environment characterized by commodity volatility and stringent regulatory oversight. **1. Regulatory & Legal Challenges:** * **GST Investigation:** Operations were halted in **FY 2022-23** due to a tax evasion probe. Registration was restored in **April 2023**. * **Income Tax Penalties:** Faced a penalty of **₹3.07 Crore** for **AY 2018-19**; a new Show Cause Notice was issued in **March 2025**. * **SEBI Oversight:** Received an **Administrative Warning** in **November 2024** regarding **Material Related Party Transactions**. A **Settlement Application** regarding GST disclosures is pending as of **May 2025**. **2. Market & Financial Risks:** * **Commodity Pricing:** High dependency on **LME copper prices** and copper concentrate imports. * **Credit Rating:** CRISIL downgraded the company to **CRISIL B/Negative** in **May 2023**, citing liquidity stretches. * **Working Capital:** Target to maintain **Gross Current Assets below 120 days**. **3. Governance Transitions:** * **Auditor Resignation:** Statutory Auditor **M/s Nirav Patel & Co.** resigned in **July 2025** due to internal restructuring. * **Leadership:** Continuity is maintained through the re-appointment of **Chairman Nilesh Patel** and **MD Rohit Bhikhabhai Chauhan** through **2027**.