NewMalayalam Steel SME IPO Details, Financials, Valuation & Peers

NewMalayalam Steel Limited, incorporated in 2017, specializes in the manufacturing of galvanized pipes, tubes, and sheets under the established brand name Demac Steel. The company was formed by acquiring the business of M/s. Demac Steel, marking its growth as a manufacturer in Kerala’s construction industry. Focused on addressing the unique needs of Kerala's climate, the company's products provide rust-resistant and long-lasting solutions for households and the construction sector. With a well-established dealer network, NewMalayalam Steel has solidified its market presence in Kerala, selling products to contractors, retailers, and through promoter-linked channels like Jaihind Steel Private Limited.

Key Points:

• Business Focus:
  • Manufacturing of galvanized pipes, tubes, and sheets with applications in roofing, construction, and household structures.
  • Products are designed to combat Kerala’s inclement weather, offering durability and heat/leakage resistance.
• Manufacturing Capacity:
  • Initial capacity of 3,500 MT (2018) expanded to 4,000 MT (2019) with electric resistance welding tube mills.
  • Manufacturing unit located in Thrissur, Kerala.
• Market Presence:
  • Strong dealer network across Kerala for efficient product distribution.
  • Products are sold to local contractors, retailers, and the promoter group entity Jaihind Steel Private Limited for further trade.
• Sustainability Initiatives:
  • A solar plant with 489.77 kWp capacity supplies electricity to the manufacturing unit, reducing operational costs and promoting green energy.
  • Excess energy is sold to the Kerala State Electricity Board under net metering arrangements.
• Brand Positioning:
  • Positioned as a preferred brand for galvanized products in Kerala due to stringent quality control and effective marketing strategies.
  • Investments in aggressive sales and marketing initiatives have strengthened the company's reach and customer loyalty.