About M & B Engineering Limited

BUSINESS OVERVIEW

M & B Engineering is among India’s leading Pre-Engineered Buildings (PEBs) players, with an installed capacity of 103,800 MTPA for PEB structures and 1.8 million square metres per annum for self-supported roofing solutions as of March 31, 2025 (Source: CRISIL Report).

The business operates through two primary divisions:

• Phenix Division, offering comprehensive solutions for PEBs and complex structural steel components.

• Proflex Division, focused on self-supported steel roofing systems.

The company provides turnkey project solutions encompassing design, engineering, manufacturing, and erection across industrial and infrastructure sectors, serving over 2,000 customer groups across industries such as manufacturing, food & beverages, logistics, power, textiles, and railways.

As of March 2025, over 9,500 projects have been executed under both divisions. Key achievements include:

• 1,600+ projects under Phenix involving 640,000 MT of PEBs and structural steel across 22 countries.

• 7,900+ projects under Proflex, covering 18.5 million square metres of roofing in India.

Notable clients include Adani Group companies, Tata Advanced Systems, Intas Pharmaceuticals, Alembic, Arvind, Haldiram, Lubi Industries, and many others. Strong customer relationships are reflected in repeat orders and partnerships spanning over 15 years.

Key projects include:

• 285,000 sq. m. PEB installation for a textile plant in Madhya Pradesh

• 125,000 sq. m. for a global appliance brand in Noida

• 57,000 sq. m. warehouse for an e-commerce major in Ahmedabad

• 84-metre clean span sugar storage facility in Gujarat

• PEB with retractable roof for a shipyard in Kolkata

• International PEB projects in Texas and New Jersey, USA

• 300+ railway projects, including the 1.4 km self-supported roofing at Hubli station and roofing for Vande Bharat depots

Manufacturing facilities are located at Sanand, Gujarat (operational since 2008) and Cheyyar, Tamil Nadu (operational since 2024), with a combined installed capacity of 103,800 MTPA. The Proflex Division operates a fleet of 14 mobile manufacturing units, enabling wide geographic coverage for roofing projects.

The Sanand facility is the only PEB manufacturing unit in India certified by the American Institute of Steel Construction (AISC) and is also recognized by RDSO, FM Global, NABL, and the Indian Navy.

The company’s in-house design and engineering team of 98 professionals uses software like STAAD PRO, TEKLA, MBS, ZWCAD, and BricsCAD, while operations are supported by SAP-H4 Hana. A project management team of 149 employees ensures on-site execution excellence.

A pan-India presence is maintained through a marketing head office in Ahmedabad and regional offices in major cities including Mumbai, Delhi, Bengaluru, Chennai, Hyderabad, and Pune, among others.

The management team comprises industry experts in PEB and roofing, supported by experienced promoters with a combined experience of over 150 years in structural engineering. This leadership, along with skilled personnel and a strong execution record, positions M & B Engineering to capitalize on future industry growth.

As on March 31, 2025, the Company had 1,631 permanent employees. The Bankers to the company are ICICI Bank Limited, Kotak Mahindra Bank Limited, Standard Chartered Bank, HDFC Bank Limited, Bank of Baroda and Axis Bank.

INDUSTRY ANALYSIS

Overview of the Structural Steel Industry

Structural steel is a premium grade of steel widely used in sectors like construction and power due to its exceptional strength and versatility. In the construction sector, structural steel accelerates project timelines while enhancing the durability and load-bearing capacity of buildings. Its high strength-to-weight ratio allows for lighter, more cost-efficient structures by reducing material requirements. Additionally, structural steel’s adaptability into varied shapes provides flexibility in design and construction.

Types of Structural Steel

Structural steel is classified into:

• Rolled Steel: The dominant segment, rolled in continuous molds without joints. It includes:

  • Channels

  • Beams

  • Angles

• Fabricated Steel: Created through cutting and bending rolled steel to achieve customized forms. It offers greater design flexibility but is more time-intensive and expensive due to the labor involved.

Structural steel components such as I-beams, C-beams, and hollow sections can be tailored to specific architectural and structural needs, whether used as the primary building framework or as reinforcement.

Benefits and Applications

Steel offers advantages like:

• High strength and ductility

• Design versatility

• Sustainability due to recyclability

• Compatibility with RCC for cost-effective strengthening

To prevent corrosion, structural steel is often treated via galvanization. Rolled steel is popular in residential buildings due to its strength, while hollow sections are preferred in commercial settings for aesthetics and performance. Fabricated steel is gaining traction in infrastructure projects due to its customizable nature.

Market Size and Trends

• Global Market:

  • Demand fell slightly from 1,783 MT in 2022 to 1,767 MT in 2023, and further to ~1,750 MT in 2024 amid global economic uncertainties and weak construction activity.

  • A modest recovery is expected in 2025 (1,745–1,795 MT), driven by infrastructure investments outside China and momentum in regions like MENA and ASEAN.

• India Market:

  • Structural steel market grew from ₹504 billion in FY19 to ₹1,009 billion in FY25 (CAGR of ~12%).

  • Projected CAGR of 11–12% from FY25 to FY30, supported by:

    • Infrastructure push

    • Affordable housing and urbanization (e.g., PMAY, smart cities)

    • Automotive and power sector demand

    • Transmission towers and renewable energy applications

Overview of Pre-Engineered Buildings (PEBs)

Pre-engineered buildings (PEBs) are gaining traction as a modern alternative to traditional construction. PEBs offer faster, cost-effective, and environmentally sustainable construction, particularly amid labor shortages and rising automation in the construction sector.

Key Advantages

• Lower material waste

• Controlled manufacturing enhances quality

• Safer and faster construction timelines

• Reduced onsite labor

• Energy-efficient and recyclable components

PEBs are widely used across:

• Industrial sectors (automotive, cement, paper)

• Infrastructure projects (warehouses, data centers, hangars)

• Commercial and institutional buildings (offices, schools, hospitals, theatres)

Construction Phases

1. Design Phase: Site readiness, design finalization, and approvals

2. Fabrication Phase: Off-site manufacturing of components for faster assembly

3. Installation Phase: Onsite assembly of pre-manufactured components

This modular approach significantly reduces project duration and resource consumption.

Market Size and Outlook

• Market grew from ₹130 billion in FY19 to ₹210 billion in FY25 (CAGR ~8.3%)

• Expected to reach ₹330–345 billion by FY30 (CAGR 9.5–10.5%)

• Growth drivers:

  • Industrial and infrastructure investments (e.g., logistics hubs, expressways)

  • Rising awareness and benefits of PEBs

  • Higher salvage value and scalability

Export Trends

• PEB exports surged from ₹35.8 billion in FY19 to ₹90.5 billion in FY25 (~17% CAGR)

• Imports grew only ~1% over the same period, indicating strong domestic manufacturing capacity and global competitiveness

Segment-Wise Market Share

• Industrial/Manufacturing: Largest segment with 53–55% share in FY25, slightly declining to 50–52% by FY30

• Infrastructure: Growing share from 37–39% in FY25 to 39–41% by FY30

• Building Segment (Residential, Commercial): Stable at 8–9%

Overview of Self-Supported Steel Roofing

Self-supported steel roofing is an advanced structural solution that eliminates the need for internal supports (like purlins and trusses), enabling large, unobstructed spans. These roofs reduce material and labor costs while providing increased usable space and structural efficiency.

Comparison with Conventional Roofing

• Self-Supported Roofing:

  • No internal columns/supports needed

  • Cost-effective in the long run

  • Faster installation and minimal maintenance

• Conventional Metal Roofing:

  • Requires dense support grid (purlins, channels)

  • More material and labor intensive

Applications

Used extensively in:

• Warehouses

• Rail yards

• Cement and food processing plants

• Manufacturing units

• Sports complexes, convention centers

Growth Drivers in India

1. Industrial Warehousing Boom:

   • Post-COVID e-commerce growth fueled demand for Grade A/B warehousing

   • Need for quick delivery has prompted the construction of fulfillment centers near urban areas

2. Flexible, Efficient Storage:

   • Self-supported roofing enables large, flexible layouts

   • Cost and time savings during construction

3. Long-Term Demand Outlook:

   • Net absorption of 40–45 million sq ft in FY24

   • Demand growth estimated at 19–24% in FY25

   • CAGR of 11–16% projected between FY25–FY29 for top 8 Indian cities

The rising need for omni-channel retail strategies and faster product delivery cycles is expected to sustain demand for self-supported roofs in logistics, retail, and industrial warehousing.

BUSINESS STRENGTHS

Leading PEB Player with Significant Installed Capacity
Among the top players in India’s Pre-Engineered Buildings (PEB) industry, with an installed capacity of 103,800 MTPA for PEB structures and 1,800,000 sq. m. per annum for Self-Supported Roofing solutions (as of March 31, 2025). A robust track record of 9,500+ executed projects provides scale-driven cost efficiencies and pricing power. (Source: CRISIL Report)

Comprehensive Product and Service Suite
Offers end-to-end ‘design-led-manufacturing’ solutions, including design, engineering, manufacturing, testing, and installation for PEBs, structural steel components, and self-supported steel roofing. Operations are driven by the combined strengths of Phenix and Proflex divisions.

Diverse Industry Relationships and Strong Order Book
Maintains long-standing ties with clients across sectors, contributing to a strong order book of ₹8,428.38 million (as of June 30, 2025). Key clients include Adani Group entities, Tata Advanced Systems, AIA Engineering, Intas Pharmaceuticals, Arvind Limited, and Haldiram Foods, among others.

Strategic Manufacturing Infrastructure
PEB manufacturing units are strategically located with in-house design and engineering capabilities, supplemented by 14 mobile units for self-supported roofing systems, ensuring operational agility and nationwide reach.

Experienced Leadership and Domain Expertise
Promoted and managed by professionals with deep expertise in PEB and structural steel, and self-supported roofing segments. Leadership involvement spans critical functions such as business development, engineering, manufacturing, and quality control.

Consistent Financial Performance
Demonstrates a solid financial track record, supported by a strong balance sheet and sustained profitability—ensuring access to financing and supporting business continuity.

BUSINESS STRATEGIES

Leverage Leadership in Domestic PEB Market
Capitalize on the strong position in the Indian Pre-Engineered Buildings (PEB) segment to benefit from the sector’s expected CAGR of 9.5–10.5% between FY25–FY30, driven by investments in infrastructure, warehousing, and logistics. Simultaneously, reinforce presence in the self-supported steel roofing market.

Expand Manufacturing Capabilities in Phenix Division
Establish a strategically located manufacturing facility to reduce logistics costs and mitigate risks related to transportation damage and project delays, thereby improving cost competitiveness and ensuring efficient delivery of PEB components.

Grow Export Revenue by Targeting Key Global Markets
Focus on increasing exports to regions like the USA, UK, and Saudi Arabia, supported by global PEB market growth (projected at $32–35 billion by 2029) and India’s rising export trend (CAGR of ~17% from FY19–FY25). The USA alone contributed to ₹50.4 billion in exports in FY25, highlighting outsourcing trends to Indian PEB manufacturers.

Pursue Strategic Alliances and Inorganic Growth
Explore acquisitions and partnerships that provide synergies, expand the product portfolio, increase distribution reach, and support entry into new geographies or business categories, thereby strengthening overall market leadership and financial performance.

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1. Manufacturing Facility Risks

The business is heavily reliant on two strategically located manufacturing facilities in Sanand, Gujarat and Cheyyar, Tamil Nadu. Any shutdowns, equipment failure, labour issues, pandemics, or political instability could disrupt operations. The Sanand facility had a utilization rate of 63.27% in FY25, while the Cheyyar facility, commissioned in May 2024, operated at 23.34%. Additionally, fatal incidents at project sites pose safety and reputational risks.

2. Product and Segment Dependency

A majority of revenue is derived from the design, manufacturing, and installation of pre-engineered buildings (PEBs) under the Phenix Division and self-supported steel roofing under the Proflex Division. A decline in PEB demand may adversely impact revenue and profitability.

3. Customer Concentration Risk

In FY25, 57.32% of revenue came from repeat customers, while 42.64% came from the top five customer groups. Any loss or reduction in repeat business could negatively affect operations and cash flow.

4. Supplier Concentration & Steel Price Volatility

82.69% of raw material procurement costs in FY25 came from the top five suppliers. The business is highly dependent on steel, sourced both domestically and internationally, making it vulnerable to price volatility, availability issues, and geopolitical disruptions. Fluctuating steel prices due to demand-supply shifts and trade factors could impact margins and cost structure.

5. Losses in Foreign Subsidiary

Subsidiary Phenix Construction Technologies Inc. incurred losses in FY23 and FY24 due to a reduction in order inflows and inability to cover fixed costs. Continued underperformance may have a material adverse impact on the group’s overall financial position and future prospects.

Summary:
M & B Engineering faces significant operational risks stemming from its manufacturing dependence, customer and supplier concentration, volatile raw material costs, and subsidiary performance. These factors can materially impact the company's business continuity, profitability, and financial health.