Shares of Man Industries (India) will remain in focus after the company announced the completion of its acquisition of Saudi Arabia-based National Pipe Company Limited (NPC) through its wholly owned subsidiary, Man International Steel Industries Company (MISIC).
The acquisition has been completed at a total cost of around USD 102 million, equivalent to nearly Rs 1,000 crore.
According to the company’s filing, NPC is an established manufacturer of HSAW and LSAW pipes in the Kingdom of Saudi Arabia and operates integrated manufacturing facilities in Dhahran and Dammam. The company has an installed manufacturing capacity of around 430,000 metric tonnes per annum.
Man Industries stated that the acquisition is aligned with its international expansion strategy and is expected to strengthen its global presence in the pipe manufacturing sector. The company added that the deal will provide access to infrastructure, energy, desalination and industrial opportunities across Saudi Arabia and the broader Middle East region.
NPC caters to oil and gas pipelines, water transmission, infrastructure and industrial projects and serves customers including Saudi Aramco, Saudi Water Authority, Saudi Water Partnership Company, Water Transmission & Technologies Co., Kuwait Oil Company, Qatar Petroleum and global EPC contractors such as McDermott, L&T, Saipem, Subsea7 and Hyundai E&C.
The company also highlighted that NPC is a profit-making and debt-free organisation with an existing order book from Aramco and other reputed customers.
Man Industries further said the Saudi facility will also include an external and internal coating plant going forward to cater to rising demand for coated pipeline solutions in the region.
As per the disclosure, MISIC has acquired 100% equity stake and control in NPC.
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