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Newly Established Pipes & Valves Company Investment Opportunity in Rajnandgaon, India

New mild steel pipes and tubes manufacturer in India seeking investment to begin full-scale operations.

Established 0-1 year(s)
Employees 2 - 5
Legal Entity Private Limited Company
Reported Sales Nil
Run Rate Sales Nil
EBITDA Margin Nil
Industries Pipes & Valves
Locations  Rajnandgaon
Local Time 12:15 AM Asia / Kolkata
Listed By Business Owner / Director
Status Active
Overall Rating
Partial Stake Sale
INR 2 crore for 50.0% stake (Native Currency: INR 20,000,000)
Reason: One of the partners have decided to retire.
Includes physical assets worth INR 4 crore
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Business Overview
- The business is a newly established mild steel pipes and tubes manufacturing unit with a planned production capacity of 72,000 tons per annum.
- Registered with the Ministry of Corporate Affairs (MCA), the company is currently non-operational and aims to begin operations within six months of receiving investment.
- The manufacturing facility includes four tube mill units with manual cut-to-length machines, capable of producing 8–10 pipes/tubes (2.5mm–4mm thickness) per minute.
- The plant is situated on long-term industrial lease land measuring 3,200 sqm, featuring a 1,300 sqm shed that houses the core production setup.
- The facility is built to meet the growing demand for mild steel pipes and tubes in construction, infrastructure, and industrial sectors across India.
Products & Services Overview
Top-selling product/service will include mild steel pipes and tubes designed for construction, infrastructure, and industrial applications, offering high strength and consistent quality.
Assets Overview
Tangible assets owned by the business include:
- Established plant and land valued at INR 2 crore.
- Factory infrastructure, raw materials, and machinery worth INR 5 crore.
Due to the urgency to commence operations, the owners are offering investment at a discounted valuation of INR 4 crore.
Facilities Overview
- The manufacturing facility comprises four tube mill units equipped with manual cut-to-length machines, capable of producing 8–10 pipes/tubes (2.5mm–4mm thickness) per minute.
- The plant has a total production capacity of 72,000 tons per annum.
- The unit operates on long-term industrial lease land spanning 3,200 sqm, with a 1,300 sqm shed structure housing the manufacturing operations.
Capitalization Overview
- The business is backed by Bank of India with credit facilities that include a term loan of INR 5 crore (excluding a 30.04% margin) and a cash credit limit of INR 2.25 crore (excluding a margin of INR 75 lakhs).
- A total of INR 2.63 crore has been raised and infused as margin money in the company.
- The company will be debt free in the next 4 years.
- The business is owned by two partners from the same family.
Recent Activity
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2 Investors contacted this Business this month. Register below to connect now!
Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct.
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