MAN Industries (India) Limited (BSE: MANINDS), one of India’s leading manufacturers of large-diameter carbon steel line pipes, is pleased to announce that its wholly owned subsidiary, MAN International Steel Industries Company (MISIC) in Saudi Arabia, has acquired 100% National Pipe Company Limited (NPC) one of the Kingdom of Saudi Arabia’s most established API large-diameter carbon steel line pipe manufacturers, with its plant located in Dhahran and office in Al Khobar, Eastern Province, Kingdom of Saudi Arabia.
Transaction details
MAN Industries (India) Limited, through its wholly owned subsidiary MAN International Steel Industries Company (MISIC), has acquired the 100% of National Pipe Company Limited (NPC), Saudi Arabia, for a total cash outflow of USD 102 Million (~INR 1,000 Crores). NPC carries a strong balance sheet with cash and liquid assets of USD 83 million comprising cash and bank balances of USD 38 million, trade receivables of USD 13 million and finished goods inventory of USD 32 million, and a net worth of USD 158.63 million, reflecting the inherent asset strength of this acquisition.
NPC is a profit-making, debt-free, API-certified large-diameter SAW pipe manufacturer with an established order book comprising active orders from Saudi Aramco and other marquee clients, full regulatory approvals in place, and 100% of its assets acquired making this a fully operational, revenue-generating asset from Day 1. The Company holds API 5L and API 2B certifications, is ISO 9001:2015 certified, and has been a Saudi Aramco Approved Vendor for over two decades.
“This is a defining moment in MAN’s global journey. In a single transaction, we have acquired 430,000 MTPA of API-certified capacity, a blue-chip customer base anchored by a 20-year Aramco relationship, and a debt-free balance sheet at a valuation that is a fraction of where comparable assets trade. Based on NPC’s current earnings profile and order book, we expect the investment to yield a payback in approximately 1.5 years a return profile that, alongside the strategic fit, reflects the disciplined approach we have taken to capital deployment. We are entering this market at the start of a multi-decade infrastructure supercycle, and this acquisition accelerates our Saudi platform by years, not quarters.” — Mr. Nikhil Mansukhani, Managing Director, MAN Industries (India) Limited.
National Pipe Company Limited (NPC) is established in Dhahran, Al Khobar, Eastern Province, Kingdom of Saudi Arabia. NPC operates two world-class pipe mills across a total plant area of ~100 acres freehold land with a combined installed capacity of 430,000 MTPA.
Pipes are manufactured to API 5L Grade B upto X80, API 2B, ASTM, BS, ISO and DIN standards. NPC’s previous shareholders comprised NPC Management Company a joint venture between Nippon Steel Corporation, Japan and Sumitomo Corporation, Japan and other Saudi shareholders.
NPC’s Key Clients: Saudi Aramco, Saudi Water Authority (SWA), Saudi Water Partnership Company (SWPC), Water Transmission & Technologies Co. (WTTCO), KOC (Kuwait), Qatar Petroleum and leading global EPC contractors including McDermott, L&T, SAIPEM, Subsea7, Hyundai E&C and others.
