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Small Iron & Steel Store for Sale in Mumbai, India

50+year old private ltd company up for sale along with its pre-leased warehouse in Mumbai.

Established 50-60 year(s)
Employees 2 - 5
Legal Entity Private Limited Company
Reported Sales USD 84 thousand
Run Rate Sales USD 44 thousand
EBITDA Margin Nil
Industries Rented Commercial Properties + 1 more
Locations  Mumbai
Local Time 10:40 PM Asia / Kolkata
Listed By Business Owner / Director
Status Active
Overall Rating
Full Sale
Asking Price: USD 940 thousand (Native Currency: INR 90,000,000)
Reason: The main Director of the Company who ran the business is no more, so the current owners have decided... View More
Includes physical assets worth USD 730 thousand
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Business Overview
- Established over 50 years ago, this Private Ltd Company, along with its warehouse located in Mumbai but has been currently leased out for another company whose tenure ends in a year.
- We specialize in the trading of high-quality steel tubes: MS tubes, ERW resistance tubes, and CDW tubes, mainly catering to the automotive, construction, and heavy machinery sectors.
- Our operations attracted around 200 walk-in customers daily, mainly B2B clients looking for wholesale, but we also catered to retail customers too.
- Our customer base includes suppliers and manufacturers of automotive parts, manufacturers of heavy machinery, and manufacturers of steel furniture like beds.
- We generate steady revenue through trading margins on our steel products and rental income from a pre-leased warehouse.
- The average order value from our clients is about INR 50,000 with no minimum purchase requirement.
- Recently, the owner has been scaling back on sales and operations while focusing on a smooth exit from the business and the steel business is currently operating with on an average of INR 50,000 per month.
- This is a great investment opportunity for buyers who have experience in steel tubes business and are looking for a well-established company with a strong customer base and steady income streams.
- In this transaction, the company and its assets are being transferred. The warehouse, which is company-owned and can also be rented out, is currently leased and will be transferred to the buyer. Once the lock-in period of the current tenant’s term ends, the buyer can decide whether to continue renting it out or keep it for their own use, as the company is not currently utilizing it.
Products & Services Overview
The business currently earns most of its income from renting out its warehouse, but the business specialized in the trading of high-quality steel tubes: MS tubes, ERW resistance tubes, and CDW tubes, mainly catering to the automotive, construction, and heavy machinery sectors.
Assets Overview
- Tangible assets: Company-owned but pre-leased warehouse worth approximately around INR 7Cr (according to the market value) which is currently rented under a "Leave and Licence Agreement".
- Intangible assets: the brand value of the company, good will, customer relationship, private limited incorporation, reputation for selling the best quality steel tubes.
Facilities Overview
No facility is being currently used for the business purpose, as we have dialled down the sales, we are maintaining a minimum sales working from owners own premise.
However, a company-owned warehouse of about 5,000 sq. ft. is currently rented out under a "Leave and Licence agreement" with a pre-leased sale clause. The rent is presently INR 3 lakh per month, with potential for increase. The total term is 4 years, with a required 3-year lock-in, and we’re currently in the second year.
Capitalization Overview
The company is run by a mother-daughter duo who own all the shares. The share capital stands at INR 10 lakh, split into 1 lakh shares worth INR 10 each, with no loans outstanding.
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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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