M&B Engineering IPO

M&B Engineering Limited IPO Strengths

• A Market Leader in PEB and Roofing Solutions

M&B Engineering Limited is a key player in India’s PEB and self-supported roofing industry, holding a 75% market share. With operations in 22 countries, it leverages integrated manufacturing, customer-centric solutions, and economies of scale to maintain leadership and expand its presence in global markets, including the US.

• Comprehensive Solutions in PEB and Roofing

M&B Engineering Limited offers specialised products and services, integrating design, engineering, manufacturing, and testing to ensure high safety and performance standards. With expertise in PEBs, structural steel components, and self-supported roofing, the company caters to diverse customer needs through its Phenix and Proflex divisions.

• Strong Customer Relationships and Diverse Industry Presence

M&B Engineering Limited holds an order book of ₹7,666.78 million, serving industries through its Phenix and Proflex divisions. With 9,400+ executed projects, it maintains long-term relationships with key clients like Adani Green Energy and Tata Advanced Systems, ensuring revenue stability, market goodwill, and sustained growth.

• Strategically Located Manufacturing Facilities and Market Leadership

M&B Engineering Limited operates two PEB manufacturing units in Gujarat and Tamil Nadu, serving diverse regions efficiently. With an installed capacity exceeding 100,000 MTPA for PEBs and 1.8 million square metres for self-supported roofing, it holds a 75% market share in India’s self-supported steel roofing sector.

• Experienced Leadership and Professional Management

M&B Engineering Limited is led by experienced promoters and a professional management team with deep industry expertise. Their hands-on approach ensures efficient business operations, strategic growth, and market leadership in self-supported steel roofing. Specialised teams across divisions enable adaptability, quality assurance, and effective response to evolving industry trends.

• Strong Financial Performance and Growth

M&B Engineering Limited has demonstrated a sustained track record of financial excellence. According to the CRISIL Report, the company achieved one of the highest OPBDIT and PAT CAGRs among peers between FY 2022 and FY 2024, with 38.0% and 67.3%, respectively. In FY 2024, it recorded a return on equity of 19.7%, making it the best performer among listed players. The company’s strong financial position, profitability, and access to financing provide a competitive edge, ensuring sustainable growth and market leadership.

More About M&B Engineering Limited

Industry Leadership and Installed Capacity

M&B Engineering Limited is one of India’s leading providers of Pre-Engineered Buildings (PEBs) and Self-Supported Roofing solutions. As of December 31, 2024, the company has:

• An installed PEB capacity of 103,800 MTPA

• A self-supported roofing capacity of 1,800,000 square metres per annum

According to the CRISIL Report, M&B Engineering holds a 75% market share in India’s self-supported roofing segment. The company also recorded one of the highest OPBDIT and PAT CAGRs between Fiscals 2022 and 2024 at 38.0% and 67.3%, respectively.

Business Divisions and Services

M&B Engineering operates through two primary divisions:

Phenix Division

• Specialises in PEBs and complex structural steel components

• Provides turnkey solutions covering design, engineering, manufacturing, and erection

• Serves industries such as warehousing, logistics, textiles, power, and railways

Proflex Division

• Focuses on self-supported steel roofing solutions

• Offers mobile manufacturing units for on-site production

• Installed over 18 million square metres of roofing across 7,825 projects

Market Growth and Competitive Edge

The Indian PEB industry grew at a CAGR of 8.0% from INR 130 billion (Fiscal 2019) to INR 195 billion (Fiscal 2024). Meanwhile, the self-supported roofing market expanded at a 6% CAGR over the same period.

M&B Engineering’s competitive advantage lies in:

• Established brand presence and extensive track record

• In-house design and engineering using software like STAAD PRO, TEKLA, and BricsCAD

• SAP-H4 Hana-driven business operations

• ISO-certified manufacturing facilities

Manufacturing Capabilities

M&B Engineering operates two PEB manufacturing facilities at:

• Sanand, Gujarat (Operational since 2008)

• Cheyyar, Tamil Nadu (Operational since 2024)

The Proflex Division operates a fleet of 14 mobile manufacturing units to deliver roofing solutions across India.

Project Execution and Clientele

With over 9,400 projects executed, M&B Engineering has served 2,000+ customer groups across multiple sectors. Key clients include:

• Adani Green Energy, Tata Advanced Systems, Elecon Engineering

• Balaji Wafers, Intas Pharmaceuticals, Everest Food Products

• Haldiram Foods, Gujarat Tea Processors, Inductotherm (India)

Revenue Breakdown (Fiscal 2024)

• Phenix Division: ₹5,802.28 million (72.98%)

• Proflex Division: ₹2,145.00 million (26.98%)

• Others: ₹3.32 million (0.04%)

Certifications and Recognition

• Sanand Facility: Certified by AISC, RDSO, FM Global, and NABL

• Recognised by the Chief Engineer (Navy) for PEB structures

M&B Engineering Limited continues to drive innovation and excellence, positioning itself as a market leader in India’s PEB and self-supported roofing industry.

Industry Outlook

Market Growth & Demand Drivers

The Indian construction sector is experiencing robust growth, driven by:

• Infrastructure development – Expansion of highways, airports, and industrial zones

• Urbanisation & industrial expansion – Increasing demand for modern, sustainable structures

• Government policies – Initiatives like Make in India, Smart Cities Mission, and PM Gati Shakti are boosting the demand for Pre-Engineered Buildings (PEBs) and self-supported roofing solutions

PEB Industry Trends & Future Growth

• The Indian PEB market has grown at a CAGR of 8%, reaching INR 195 billion in Fiscal 2024

• Rising adoption in warehousing, logistics, railways, and power sectors is fueling expansion

• Automation & advanced design software are improving manufacturing efficiency and project execution

Projected Market Growth (2025-2030)

• PEB market CAGR (2025-2030): Estimated at 9-11% due to increasing infrastructure spending

• Future market size: Expected to surpass INR 350-400 billion by 2030

Key growth drivers:

• Demand from logistics, e-commerce, and industrial manufacturing

• Growing use of sustainable and energy-efficient buildings

• Increasing FDI in warehousing and real estate

Self-Supported Roofing Market: Future Insights

• The self-supported roofing segment grew at a CAGR of 6%, reflecting strong demand from FMCG, pharmaceuticals, and food processing industries

• Mobile manufacturing units are increasingly using on-site roofing solutions, reducing logistics and installation costs

Market CAGR (2025-2030): Expected at 7-9%, driven by:

• Cost-effective & durable construction techniques

• Rising industrial investments in flexible and modular roofing solutions

• Government incentives for green & sustainable construction

How Will M&B Engineering Limited Benefit

• Market Leadership: Holding 75% market share in self-supported roofing, M&B Engineering is positioned for strong growth as demand rises.

• Growth in the PEB Industry: With the PEB market projected to grow at a 9-11% CAGR, M&B Engineering will gain from increasing infrastructure investments.

• Expansion in Self-Supported Roofing: The 7-9% CAGR in this segment will boost Proflex Division’s revenue, expanding its on-site roofing solutions business.

• Support from Government Initiatives: Policies like Make in India and Smart Cities Mission will fuel demand for PEBs and roofing solutions.

• Manufacturing Capacity Advantage: With 103,800 MTPA PEB capacity and 1,800,000 sq. m roofing capacity, M&B Engineering can efficiently meet rising industry needs.

• Technology-Driven Operations: Advanced software like STAAD PRO, TEKLA, and SAP-H4 Hana enhances design, execution, and project efficiency.

• Strong Clientele & Reputation: Serving Adani, Tata, and Balaji Wafers, M&B Engineering benefits from repeat business and industry credibility.

• Mobile Manufacturing Expansion: The 14 mobile units enhance flexibility, reducing logistics costs and improving project execution across India.

• Increase in FDI and Industrial Growth: Increased foreign direct investment (FDI) in warehousing and real estate will boost demand for PEBs and roofing solutions.

• Financial Growth and Profitability: M&B Engineering’s 38% OPBDIT CAGR and 67.3% PAT CAGR from Fiscal 2022-2024 indicate strong profitability and expansion potential.

Peer Group Comparison

Name of the Company	Face Value (₹)	Revenue from Operations (₹ Million)	Basic EPS 2024 (₹)	P/E	RONW (%)	NAV (₹)
M & B Engineering Limited	10.00	7,950.60	9.17	–	19.68%	46.61
Peer Groups
Pennar Industries Limited	5.00	31,305.70	7.29	23.27	11.22%	64.95
Bansal Roofing Products Limited	10.00	1,055.84	2.69	34.73	12.84%	20.94
HIL Limited	10.00	33,749.66	46.15	63.12	2.78%	1,661.39
Everest Industries Limited	10.00	15,754.52	11.42	101.11	3.01%	378.37
Interarch Building Products Limited	10.00	12,933.02	58.68	21.04	19.40%	308.43

Key Strategies for M&B Engineering Limited

• Leveraging Market Leadership in the Domestic PEB Industry

M&B Engineering Limited aims to capitalise on its strong position in India’s Pre-Engineered Buildings (PEB) market. With the industry projected to grow at a robust 10-11% CAGR until 2029, the company intends to strengthen its leadership in the self-supported steel roofing market, supported by increasing investments in infrastructure.

• Expanding Manufacturing Facilities for Enhanced Serviceability

To improve operational efficiency and reduce logistical expenses, M&B Engineering Limited is expanding its manufacturing facilities. The strategic commissioning of the Cheyyar facility enhances its serviceability in southern India, ensuring optimised project execution and strengthening its market presence in new geographical regions.

• Boosting Export Revenue with a Focus on Global Markets

M&B Engineering Limited aims to increase export revenue by targeting key international markets, including the USA, UK, and Saudi Arabia. With India’s PEB exports rising at a CAGR of 19.1%, the company plans to leverage its competitive pricing, quality adherence, and manufacturing capabilities to strengthen its global footprint.

• Geographical Diversification to Reduce Market Dependency

Recognising the need for geographical diversification, M&B Engineering Limited plans to expand into regions where it currently has limited presence. This strategy minimises dependence on specific markets, allowing the company to capitalise on opportunities across India while catering to the expanding reach of its existing clientele.