A Brief about MSL

• Leading manufacturer of Seamless &ERW Carbon & Alloy Steel Pipes & Tubes in
India.
• Is an ISO9001:2000 Company and having API (5CT&5L) and IBR Licenses.
• Plant is located at Nagothane, about 100Kms. From Mumbai Port.
• Both Seamless & ERW Plants are first of its kind in India and are having Technical
Tie-up with SMSMEER (earlier known as MANNESMANNDEMAG) of Germany.
• “CPE Technology”, used for Seamless Pipes &Tubes production (upto7”OD), is the
world renowned technology.
• “Plug Mill Technology”, used for Higher Dia Seamless Pipes & Tubes production
(from7”to14”OD), is the most reliable technology, in higher dia segment.
• High Frequency Induction Welding Technology, is used for ERW Pipes & Tubes
(upto21”OD).
• Has made a strategic business decision of foraying into Wind Power Generation
business for captive consumption leading to low cost of Power Generation &
substantial saving thereby.
 Installed Capacities

At Raigad (Maharashtra)
• 3,50,000 MT p.a. of Seamless Pipes (from 1/2 ” to 14” OD)
• 2,00,000 MT p.a. of ERW Pipes (from 6” to 20” OD)
+ External / Internal Coating Facility (from 1” to 48” OD)
Share Holding and Capital
Structure
Domestic Market Share of MSL
Customers of MSL
 An overview of Indian Pipe and
Tube Industry
Types of Size Major Domestic Players Main Application
Pipes Raw
Material

SEAMLES 1/2” – Round Maharashtra Wide Application

S 14” Steel Seamless in High Pressure
Billets Indian Seamless Oil & Gas
Tubes Exploration &
Jindal Saw Drilling, Boiler,
BHEL, Automobiles,
Remi Metals Process,
Pipelines,
Refineries

ERW 1/2 ” – HR Coils Maharashtra Low Pressure

20” Seamless Application Cross
Jindal Pipes Country Line
 Demand Drivers for Indian Pipe
and Tube Industry
• E & P projects: The GoI in its efforts to reduce crude imports has formulated
the New Exploration Licensing Policy (NELP) for exploration and production
of oil & gas. The GoI has awarded 256 blocks till date and the number is set
to increase to 330 by 2010.
• Pipeline network of India for oil & gas transport being lower at 17,576 kms
as on April 2009, (32% penetration level) it represents a huge scope for
growth for the pipe industry.
• Increased efforts by the Government of India (GoI) on infrastructure
development for laying pipelines for oil & natural gas transport- e.g
National Gas Grid project
• City gas pipe is currently available in 10 cities and the coverage is expected
to grow to 40 cities in the next five years, entailing an investment of Rs.
250-300 bn.
• In addition to the above, the replacement demand from the US and
European countries, having a vast pipeline infrastructure, will be huge.
• Water & sewage transport and irrigation facilities- For the Eleventh Five
Year Plan, the GoI is aiming to add 11 mn hectares of irrigational facilities,
entailing an investment of Rs.1,580 bn
Demand Drivers
 Strengths of MSL
• Globally competitive due to lower manufacturing cost and
ability to meet stringent International Quality Standards.
• Major Domestic Customers includes Cash Rich Public Sector
Undertakings of Oil & Gas Sector.
• Only Indian manufacturer of Seamless Pipes for Tubing &
Casing beyond 9-5/8” to 14” OD.
• Only Indian manufacturer of ERW Pipes beyond 16” to 21”
OD Pipe, a competitive product over SAW Pipes in that
range (for Cross Country Line Pipe Application).
• Cash Rich & Debt Free Company.
• MSL casings are well accepted in USA market as “MAHA”
Brand and is also having a Global presence in various
countries of the world ranging across Middle East and Far
East.
• Limited number of Manufacturers Internationally for higher
OD Seamless Pipes.
• Presently enjoying “AA+” Rating from CRISIL & ICRA.
 What can go wrong
• Delay in backward integration project.
• Imports & Dumping of pipes & tubes from China.
• Volatility in Steel prices.
 Valuation
Avg Cash Flows of last 6 yrs 226.97 cr
Assuming a Interest Cover of 3 75.65 cr
times,
Interest payment
Assuming a interest rate of 9 %, 840.64 cr
Debt capacity of the company
Reserves and Surplus 2252.30 cr
Market Cap 3092.94 cr
No. of shares outstanding 7.05 cr
Value per Share 438.50 Rs
Current Market Price per Share 396.50 Rs