Manaksia Steels Expands CRC Capacity with ₹100 Crore Investment

Manaksia Steels Limited is set to expand its Cold Rolled Coil (CRC) production capacity at its Haldia, West Bengal facility. The company announced plans to install a new "6-Hi Reversible Cold Rolling Mill," which will add 250,000 tonnes per annum (TPA) of capacity. This investment of approximately ₹100 crore is expected to bring the total CRC capacity at Haldia to 370,000 TPA upon completion. Funding for the project will come from a mix of debt and internal accruals. The expansion is scheduled to be finished by Q4 FY 2027-28.

Meeting Growing Demand

This expansion aims to meet rising demand for CRC products. The increased output will support the company's own needs and boost sales in both domestic and international markets.

Company Background and Recent Performance

Manaksia Steels, part of the Manaksia Group, is a Kolkata-based steel manufacturer with operations in West Bengal. The company focuses on flat steel products, including cold-rolled steel coils and sheets. Its current CRC capacity at the Haldia plant is 120,000 TPA.

Manaksia Steels has pursued growth through expansions. In July 2025, it announced a ₹40 crore plan for a second colour coating line at Haldia, expected operational by Q4 FY2025-26. However, the company has experienced operational difficulties, such as low capacity utilization, which was around 46% in FY25, and sensitivity to raw material price swings. Despite these issues, Manaksia Steels reported strong first-quarter results for July 2025, showing increased consolidated net profit and sales volume.

Potential Risks and Governance Watchpoints

Manaksia Steels operates in a competitive steel market influenced by commodity price volatility. The company has faced challenges including slow sales growth, low capital efficiency, and underutilization of its facilities.

Additional concerns involve governance. The broader Manaksia group has encountered regulatory scrutiny, with SEBI penalizing related entities for synchronized trading. Investors should also monitor the fairness and terms of related-party transactions, given the significant interest from the promoter group.

Industry Peers

Manaksia Steels competes in the Indian steel industry against major players such as JSW Steel, Tata Steel, Steel Authority of India Limited (SAIL), and Jindal Steel and Power Limited (JSPL). These companies also produce value-added steel products, including cold-rolled steel, for industries like automotive and construction.

Looking Ahead

Investors will be watching for progress on the installation of the new rolling mill and adherence to the Q4 FY 2027-28 completion target. Updates on the financing mix, trends in CRC market demand, and the company's operational performance, including capacity utilization and profitability following the expansion, will also be key indicators.