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Profitable Steel Business Investment Opportunity in Vijayawada, India

Business that manufactures MS steel pipes is planning for back-end expansion in the steel industry.
This Business is on a Premium Plan
Established 5-10 year(s)
Employees 10 - 50
Legal Entity General Partnership
Reported Sales USD 3 million
Run Rate Sales USD 5.5 million
EBITDA Margin 30 %
Industries Steel
Locations  Vijayawada
Local Time 11:01 PM Asia / Kolkata
Listed By Business Owner / Director
Status Active
Overall Rating
Partial Stake Sale
USD 11.4 million for 40.0% stake (Native Currency: INR 1,000,000,000)
Reason: Funds are required to set up the new machinery, for construction of the new building and working cap... View More
Includes physical assets worth USD 3.4 million
Interested to connect with advisors
Name, Phone, Email
Not disclosed
Business Name
Available after connect
User Verification
Documents
Pitch Deck
Steel Pipes
GST Certificate
Business Overview
- We are a well established business engaged in the manufacturing of steel pipes in South India.
- Source the raw material from 4 suppliers in Raipur and we have a strong relationship with them.
- We have a production capacity of 6,000-7,000 MT per month for the steel pipes.
- Our products are used in the furniture and construction industry, we are supplying our products to 100 clients in Andhra Pradesh and Karnataka. We plan to enter the market in Tamil Nadu and Kerala.
- The revenue reported last year was low due to the pandemic situation but now we are back on track.
- We have acquired land of 7.1 acres in Andhra Pradesh to start the manufacturing of billet which is used as a raw material in steel products, HR strip, and to expand our pipe manufacturing.
- Have identified the suppliers for raw materials with the quotation as well.
- The production capacity for the new plant for billet and HR strips will be 1 lakh MT per year.
- Currently, we are operating as a partnership but are in the process of getting incorporated as a private limited entity, the entire business and the assets will be transferred to that entity along with this investment.
- We have over 20 years of trading experience and 10 years of manufacturing experience in this industry.
Products & Services Overview
Engaged in the manufacturing of MS steel pipes that are in various shapes like round, square, and rectangle.
Plan to start manufacturing MS billet and HR strips of various sizes.
Assets Overview
Land of 7.1 acres, 3 mills that are used as the present pipe manufacturing machinery, building of 200*80 ft. and stock shed of 20*160 ft.
Facilities Overview
We operate on a 7.1 acres of land out of which only 1 acre is utilized at the moment. The land is owned by the business. The built up are includes a building of 200*80 ft. and a stock shed of 20*160ft.
Capitalization Overview
Not Disclosed
Recent Activity
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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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