MSL’s seamless long journey of 25 years has been a remarkable story of growth, achievement and creation of substantial value for its shareholders. MSL was incorporated in 1989 when management observed a great demand for seamless pipes in the domestic market. The first 7” Seamless Plant was commissioned in 1992 in technical collaboration with Mannesmann Demag Huttentechnik, Germany. The plant imported from USA was set up in Nagothane in the Raigad district of Maharashtra. The area had dual advantage – firstly tax benefits for 10 years and secondly the proximity to the port eased supply to domestic market and exports to other countries. It took five years to strengthen our hold in the market and earn substantial profits. In 2000, MSL ventured into manufacturing of large diameter Electric Resistance Welded (ERW) pipes by establishing a 21” ERW Plant adjacent to its seamless pipes plant at Nagothane with an annual capacity of manufacturing 200,000 tpa. The plant imported from Mannesmann Demag Huttentechnik (MDH), Germany was first-of-its-kind plant in India capable of manufacturing ERW pipes up to 21’’ outer diameter.
The growth story continues as the company imports a 14” Seamless Plant from Youngstown, Ohio in 2004. The plant was set up at a capex of Rs150 crore in record time of two years.
Realizing the need of technology partnering in specialized area, the company entered into a joint venture with Hydril
Corp of USA for manufacturing of premium joint connections. Hydril Corp of USA has since been taken over by Tenaris of Argentina. The joint venture agreement however remains intact. This was followed by setting up a coating plant by using latest technology 3 layer PE/PP coating near to the existing facility at Nagothane at a capex of Rs25 crore. The 3 layer PE/PP coating would facilitate coating internally and externally for 14’’ diameter pipes and prevent corrosion for cross country applications.
As on January 2008, MSL acquired 6’’ seamless pipe plant in Romania with an installed capacity of 200,000 TPA. The commissioning of this plant near Mangaon (Maharashtra) at capex of Rs250-300 crore takes our total capacity to 6,00,000 metric tonnes per annum.
MSL has also diversified into renewable energy development in synergy with our growth momentum and commitment to green power. An initiative in this direction is a 7 MW wind power project at Satara in Maharashtra and a 5 MW solar power project in Rajasthan. Meanwhile, we have acquired 20% stake in an iron ore mine in Brazil few months back and also plan to set up a billet plant.
The 25 years journey has been an interesting story of cost cutting activities, management issues, customer service, caring for the society and employees. A journey of giving back to the society by means of ensuring sustainable development of its employees, the society and the environment it operates in. All these factors are being managed in a delicate and holistic way.