M&B Engineering Ltd Approves Capacity Addition of 10,000 MTPA at Sanand Plant
M&B Engineering Ltd has approved a brown field expansion project focused on adding capacity for Heavy Structural steel at its Sanand Plant. The initiative aims to significantly boost the existing production capabilities within the company’s Phenix Division.The Board of Directors sanctioned the project, which involves expanding operations by 10,000 MTPA (Million Tonnes Per Annum). This addition will be made alongside the plant's current operations, targeting a completion and commissioning period by Q1 of FY28.
The Sanand Plant currently possesses an existing capacity of 12,000 MTPA for Heavy Structural Steel products, which forms part of the overall 72,000 TPA total capacity of the plant. The current utilization rate for these products is reported to be around 75 to 78%.
The expansion requires an investment of approximately Rs. 30 Crores and will be financed through a combination of Term Loan and internal accruals.
This strategic move addresses increasing market demands driven by major construction sectors in India, particularly data centers and high-rise building projects.
The rationale provided for the capacity increase highlights that India's expanding data-center market represents a USD 12 to 14 billion addressable opportunity over the next five years, supported by approximately USD 60 to 70 billion in announced investments. A similar opportunity is emerging in high-rise construction, where developers are increasingly utilizing steel for accelerated project timelines without compromising structural integrity or scalability.
The projects targeted—which require a hybrid construction approach combining Pre Engineered Building (PEB) systems with Heavy Structural Steel—allow M&B Engineering to provide comprehensive, end to end solutions. The addition of capacity strengthens the company's position across data centers and complex heavy structural applications.
Key operational details regarding the expansion are summarized below:
| Particulars | Details / Disclosure |
|---|---|
| Existing Capacity (Heavy Structural Steel products) | 12,000 MTPA (Forming part of the total capacity of 72,000 TPA of the Sanand Plant) |
| Proposed Capacity Addition | 10,000 MTPA at Sanand Plant |
| Investment Required | Approximately Rs. 30 Crores |
| Mode of Financing | Term Loan and Internal accruals |
| Commissioning Timeline | Expected by Q1 of FY28 |
MBEL Stock Price Movement
As of 2:11 PM, shares of M & B Engineering Limited are shedding value in live trading, slipping 5.38% to trade at ₹282.45. The stock has seen a volume of 1.05 million shares as it trades through the day.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.