Man Industries bullish on Gulf after US-Iran truce

The US-Iran truce is turning out to be timely for Indian construction firms operating in the region, as rebuilding in the aftermath of the crisis is estimated to cost as much as $50 billion. Companies with a presence in the Middle East, such as Man Industries (India), are set to capitalise on this. The Indian carbon steel pipe producer recently acquired Saudi Arabia-based National Pipe Company for $102 million.

"One outcome of the geopolitical environment is that countries are increasingly prioritising energy security and self-sufficiency," managing director Nikhil Mansukhani told ET in an exclusive interaction. "We are already seeing significant demand emerging from Saudi Arabia, Abu Dhabi, Iraq, and neighbouring regions."

The buyout of National Pipe Company includes $83 million in cash and liquid assets and an order book of around $120 million for the current fiscal, making it a "highly attractive plug-and-play acquisition," Mansukhani said. He anticipates investments in oil, gas and water infrastructure picking up in the West Asian region.


While the crisis has brought in additional infrastructure requirements for the Middle East region, these regions – and Saudi Arabia in particular – are already in the midst of a major capital expenditure.

In 2024, Goldman Sachs estimated that Saudi Arabia is likely to invest $1 trillion across six key sectors by 2030. This includes upstream and downstream energy, renewable energy, metals and mining, clean hydrogen, carbon capture, digitalization and transportation and logistics.

With National Pipe Company, Man Industries can hit the ground running without the gestation period typically associated with greenfield projects, approvals and customer onboarding – their products are already approved by large players such as Saudi Aramco and American Petroleum Institute among others.

As compared to a typical bid book of Rs 11,000 – 14,000 crore, the combined bid book for Man Industries will range from Rs 25,000 to Rs 30,000 crore.

“Projects are already under execution and we expect visible contribution starting from Q1 itself, with stronger momentum in Q2 and Q3 as new orders move into execution,” Mansukhani said. “This acquisition fundamentally changes MAN Industries’ scale, profitability profile, and global positioning,”

From a revenue of around Rs 2,000 – 2,500 crores two years back, the company is aiming for revenues of Rs 6,000 – 7,000 crores in the near-term, with profit in the range of Rs 400 – 500 crore. It will also get a profitability boost from this buyout given that manufacturers in Saudi Arabia operate in the range of 15 – 25%, as compared to 10 – 13% in India, which remains a highly competitive and price-sensitive market.

“Saudi Arabia is a protected and localisation-driven market with ‘Made in Saudi’ policies, import duties, and freight advantages that support significantly stronger margins,” Mansukhani said.