By targeting efficient hydrogen gas delivery, the company anticipates overcoming a critical obstacle in transitioning to a hydrogen-based ecosystem.
India’s Momentum in Renewable Energy: A Green Power Revolution
India has emerged as a leading force in renewable energy, with its capacity exceeding 180 GW, positioning it as the world’s fourth-largest player in both wind and solar power. The country’s renewable capacity, surpassing 180 GW last November, stands as a testament to its significant presence in the global renewable energy landscape. Solar power contributes 72 GW, wind power constitutes 45 GW, and large hydro adds 47 GW, collectively making up more than 40% of the country’s total installed capacity.
This remarkable surge in green power is not only meeting the energy needs of homes and industries, but it is also making substantial waves in stock markets, coinciding with India’s ambitious climate goals.
Renewable-energy stocks have enjoyed an exceptional performance, delivering returns ranging from 100% to 270% in 2023, illustrating the investor enthusiasm for this sector. Furthermore, the emergence and growth of the green hydrogen sector have attracted numerous companies, including Man Industries, signaling the evolution and diversification of the renewable energy landscape in India.
| Man Industries (India) Ltd: Consolidated Annual Results | |||||
| (All figures In Rs.Cr.) | Mar-19 | Mar-20 | Mar-21 | Mar-22 | Mar-23 |
| Sales | 2,221.71 | 1,759.28 | 2,080.20 | 2,138.63 | 2,231.34 |
| Other Income | 22.43 | 16.96 | 30.79 | 37.08 | 51.89 |
| Operating Profit | 198.85 | 184.5 | 235.88 | 217.67 | 176.76 |
| Interest | 64.49 | 64.42 | 52.8 | 37.3 | 41.03 |
| Depreciation | 45.93 | 52.32 | 46.38 | 45.4 | 45.35 |
| Taxation | 29.59 | 9.75 | 35.84 | 33.38 | 22.38 |
| Net Profit / Loss | 58.84 | 55.5 | 100.85 | 101.58 | 68 |
Man Industries: Pioneering Diversified Initiatives
The Man Group, established by the Mansukhani family in the 1970s, represents a diversified conglomerate, with its flagship entity, Man Industries (India) Ltd, incorporated in 1988. The company’s primary operations encompass the manufacturing and coating of Large Diameter Carbon Steel pipes, alongside engagements in infrastructure development, real estate, and trading.
Man Industries (India) Ltd’s pursuit of global excellence is underscored by its expansion, integration, and continual growth. Notably, the company operates three cutting-edge manufacturing facilities, including two facilities situated in Anjar, Gujarat, equipped with two LSAW line pipe units, two HSAW line pipe units, and one ERW unit, in addition to various Anti-Corrosion Coating Systems. Another facility in Pithampur, Madhya Pradesh, furthers the company’s manufacturing capacity, boasting a total installed capacity exceeding 1.15 Mn+ MTPA.
As a cornerstone entity within the Man Group, UK, Man Industries (India) Ltd specializes in the manufacturing, processing, and trading of submerged arc-welded pipes and steel products, a testament to its diversified operations and visionary approach within the renewable energy and infrastructure sectors.
The Company’s keen involvement in the evolving green hydrogen sector positions it as a pivotal player in India’s journey towards sustainable and innovative energy solutions, reflecting the company’s commitment to embracing progressive and environmentally conscious initiatives in the renewable energy landscape.
Man Industries Expands into Green Hydrogen Transport
Man Industries, a leading provider of longitudinal submerged arc welded line pipes for various industries, has expanded its offerings to include hydrogen transportation pipes. With a robust global reach and a strong clientele including GAIL, IOCL, HPCL, and international names like SHELL and Hyundai Engineering & Construction Ltd., the company has positioned itself as a key player in the hydrogen transport sector.
Green Hydrogen Advancements
In a strategic move to capitalize on the growing hydrogen market, Man Industries aims to annually deliver up to 5 lakh tons of hydrogen from its existing setup, with minimal capital expenditure. Nikhil Mansukhani, the Managing Director at Man Industries, emphasized the successful testing of their pipes for safe hydrogen transportation, conducted by a leading European research and development center, RINA Consulting – Centro Sviluppo Materiali S.p.A., Italy.
Industry Revolution and Stock Performance
Mansukhani believes that hydrogen is a game-changer in the alternative fuel sector and envisions a revolution in the energy industry. The company’s stock price has surged by an impressive 287% in the last year. He also highlighted the substantial opportunity presented by the emergence of transport pipelines for hydrogen, especially in alignment with the global shift towards achieving Net Zero carbon emissions by 2050.
Addressing Hurdles in Hydrogen Transition
By venturing into the production of hydrogen transportation pipes, Man Industries aims to address a significant challenge in transitioning to a hydrogen-based ecosystem – efficiently transporting hydrogen gas to the point of use. This strategic expansion positions the company to play a vital role in enabling the widespread adoption of green hydrogen as an alternative, sustainable energy source.
Man Industries, a Key Player in Green Hydrogen Sector
With India’s hydrogen generation market estimated to reach $22-23 billion by 2030, the green hydrogen sector is gaining prominence on the global stage. Mansukhani, a representative of Man Industries (India) Ltd, asserted, “The demand for hydrogen is significant until 2050, although it’s too early to pinpoint specific figures. MAN is ready to efficiently engage in upcoming global hydrogen initiatives.”
In addition to its impressive global presence, with 70-75% of its sales coming from overseas markets, Man Industries is positioned as one of the largest manufacturers and exporters of large diameter carbon steel line pipes. These pipes play a crucial role in facilitating safe and efficient transportation for various industries, including oil & gas, petrochemicals, water, and hydrogen.
Marking a significant achievement, on 30th December 2023, Man Industries (India) Limited announced the successful testing of pipes for safe hydrogen transportation undertaken by a leading European Research Centre for hydrogen transport. This Hydrogen Service test ensures structural integrity and safety of the pipes, addressing critical challenges associated with hydrogen’s small molecule size permeating materials more easily than other gases.
This successful test underscores Man Industries’ commitment to innovation and sustainability, marking a critical milestone in addressing a major hurdle in the shift to a hydrogen-based ecosystem—efficiently delivering Hydrogen Gas to the point of use.
In the context of the growing market for green hydrogen and the crucial role of safe transportation, Man Industries’ involvement signifies a pivotal step towards advancing the green hydrogen agenda and contributing to the sustainable energy landscape.
Hydrogen-Transport Pipes for a Sustainable Future
Man Industries, a leading player in the hydrogen transport industry, is strategically entering the burgeoning green hydrogen market. Recognizing the vast potential of clean hydrogen as a future energy source, the company has embarked on manufacturing pipes tailored for hydrogen transportation, aligning with the global goal of achieving net-zero carbon emissions by 2050.
Expanding Market Prospects for Green Hydrogen
With the hydrogen generation market in India projected to surge to $22-23 billion by 2030, the increasing global focus on hydrogen as a clean energy solution further amplifies the opportunities. Man Industries is investing in extensive research and development efforts to position itself favorably in this high-growth sector, capitalizing on the anticipated widespread adoption of hydrogen as a prominent clean energy source.
Milestone Achievement in Safe Hydrogen Conveyance
The company recently marked a significant achievement with the successful completion of testing for secure hydrogen transport pipes. This milestone, conducted in Italy by RINA Consulting – Centro Sviluppo Materiali SPA, underscores the company’s commitment to ensuring the safe and efficient conveyance of hydrogen, solidifying its leadership in the sector.
Entered into Partnerships for Green Energy Transition
In addition to its technical advancements, Man Industries is engaging in discussions with Indian conglomerates seeking to transition to green energy. By establishing collaborations and sharing expertise, the company is actively contributing to the proliferation of green hydrogen, renewable energy, and sustainable energy solutions.
Man Industries’ proactive foray into the green hydrogen market is poised to further solidify its position as a key player in the renewable energy sector, with a sharpened focus on driving the transition towards sustainable and environmentally-friendly energy practices.
Government Initiatives to Drive Green Hydrogen Production
The Indian government is making substantial strides to bolster the production of green hydrogen, aligning with its commitment to curbing carbon dioxide emissions and positioning itself as a frontrunner in the green energy export arena.
In a major move, the government has introduced a ₹160 billion scheme, amounting to $2 billion, to incentivize and propel green hydrogen production within the country. Producers stand to benefit from incentives equivalent to at least 10% of their costs, providing crucial support for the transition to renewable energy.
Furthermore, the government aims to offer incentives starting at ₹30 per kilogram for green hydrogen production, with the goal of reducing manufacturing costs from the current ₹300 per kilogram. The initiative also entails allocating funds for the production of electrolysers, which are indispensable for green hydrogen production.
In a proactive approach, the government plans to kickstart the bidding process imminently, with the aspiration of supporting 3.6 million tonnes of hydrogen production capacity over the next three years. The auctions will be structured in tranches for the procurement of green hydrogen supply and electrolysers, contributing to market insights, technological adoption, and cost reduction within the sector.
India has set ambitious targets, aiming to derive 50% of its electricity capacity from non-fossil-fuel sources by 2030, with an eventual goal of achieving net-zero carbon emissions by 2070.
Prospects for Man Industries in the Green Hydrogen Market
Looking ahead, Man Industries anticipates generating revenues of approximately ₹40 billion in the upcoming two years. The company has actively participated in substantial bids for new ventures in both domestic and international markets, with the expectation of securing incremental orders in the ensuing months.
Capitalizing on the softening of raw material prices, the company foresees improved realizations in the third quarter, bolstering its financial outlook.
Moreover, focusing on product innovation, Man Industries is poised to develop new offerings tailored to the evolving requirements of customers in the green hydrogen industry. As a pioneering entity, the company is inclined to forge strategic partnerships with other firms and research institutions to expedite its foray into the green hydrogen sector, solidifying its establish itself as a leading participant in this rapidly growing sector.
Seizing Opportunities in Green Hydrogen Market
Man Industries, a leading player in the green hydrogen sector, is committed to expanding its production capacities to cater to the escalating demand for green hydrogen. Leveraging its substantial revenue from international operations, the company is strategically aiming to enter new markets and bolster its presence in the sector. Backed by a proven track record of efficient execution and a widespread network, Man Industries is well-equipped to capitalize on the burgeoning opportunities in the green hydrogen market.
In conclusion, with its solid groundwork and proactive approach, Man Industries is poised to assume a significant role in shaping the landscape of sustainable energy worldwide.
Disclaimer: This content is purely for informational purposes and does not constitute a recommendation for stock investment. Any decision related to investments should be made in consultation with a qualified financial advisor.
