McNally Bharat Engineering Company Share price and Fundamental Analysis

Company History

McNally Bharat Engineering Company Limited (MBE) is one of the leading Engineering Companies in India, which was incorporated on 10th July 1961 under the name of McNally Bird Engg. Co. Ltd as a joint venture between McNally Pittsburg, USA and Bird & Co. The Company, headquartered at Kolkata engaged in providing Turnkey solutions in the areas of Power, Steel, Alumina, Material Handling, Mineral Beneficiation, Coal washing, Ash handling and disposal, Port Cranes, Civic and Industrial water supply etc. The turnkey construction activity of the company is managed by its Projects division also based at Kolkata through separate SBU's that assume responsibility for each activity from concept to commissioning. MBE also manufactures a range of equipment largely employed in the above activities, which are undertaken at two factories under the Products division of the company. The Projects divisions at Kolkata as well as the Products division are both ISO 9000 certified.

MBE had designed and built the longest cross country conveying system in India during the year of 1968 for 800 TPH coal handling plant of thermal power station at Talcher, Orissa. In the year 1970, the first indigenously designed mineral beneficiation plant in India for beneficiation of fluorspar was built by the company for Gujarat Mineral Development Corporation Ltd at Kadipani, Gujarat. Also in the same year, MBE had built the first Carbon Paste Plant indigenously, for Indian Aluminium. The Company's name was changed from McNally Bird Engg Co Ltd to the present name McNally Bharat Engineering Company Limited in the year 1972. In the year 1979, MBE had built the first indigenously designed 700 TPH Coal Washery for Bharat Coking Coal Ltd. at Sudamdih, Jharkhand. The Company's control was taken over by the Williamson Magor Group in the period of 1980. During 1995-1998, Projects and Products Divisions of the company awarded ISO 9001 certification, this was constituted by RWTUV, Germany. In 1998, the company had entered into Open cast mining sector and secured an order for 20,000 tph shiftable conveying system followed by orders for conveyors and Bucket wheel excavator, Spreader etc from Neyveli Lignite Corporation, Tamil Nadu. After a year, in 1999, a Joint Venture was formed with Eriez Magnetics, USA, world's leading manufacturers of magnetic, vibratory and metal detection equipment for manufacture of their products in India.

The Company had received order from Neyveli Lignite Corporation in the year 2000 for first dense phase pneumatic conveying system for ash handling in India and in 2001, MBE had obtained the first major order for Water Management in a joint venture project for combined water supply to 674 habitations in Tiruchirapally District, Tamil Nadu. During the year 2002, the company had entered into a licensing agreement with Konecranes Heavy Lifting Corporation VLC Corporation for technology transfer for design, engineering, manufacture, erection & commissioning of a range of Port Handling Equipment. In the same year of 2002, MBE had acquired 100% control over Eroterv-Waagner-Biro, Hungary, now known as EWB Kornyezetvedelmi Kft., world leader in Pneumatic conveying Technology. Designed, built and commissioned India's largest capacity Level luffing cranes in the year 2004 at Kandla Port. During the year 2005, the company had built and commissioned in global record time of 14 months a complete lead-zinc beneficiation plant for M/s Hindustan Zinc- Agucha mines, a Green Anode plant for Bharat Aluminium Company at Korba and the India's largest capacity Goliath Crane (300 MT) for Cochin Shipyard Ltd. In the same year of 2005, MBE had built and commissioned Container Handling Crane in India at Haldia Dock Complex.

During the year 2006, the company made a tie-up with TPE of Russia in steel sector for iron and steel making. MBE, a first Indian company made a association with Aluminium Pechiney (France) for building Hyper Dense Phase Alumina Conveying System at Angul for National Aluminium Company Ltd. And also in the same year of 2007, the company had entered into steel sector and awarded an order for constructing Sinter plant at Vizag by RINIL.

In January of the year 2008, the company received an order from Bharat Heavy Electricals (BHEL), Bangalore, for supply of an ash-handling system - mechanical package for DVC Mejia Phase B units 1 and 2 (2 x 500 mw) valued at Rs 289.2 million and in February, bagged a Rs 6,218.8 million order from Steel Authority of India (SAIL) for its expansion at the IISCO steel plant. MBE unanimously agreed to acquire 68.28% shareholding of Sayaji Iron & Engineering at Rs 590.1 million in May of the year 2008. During September of the same year 2008, the company bagged an order worth of Rs 1.15 bn from BHEL.

In 2010, the company bagged an order for Rs. 827 crores from Madhya Pradesh Generating Company (MPGENCO). during the same year, the company bagged orders for the supply under Pre Treatment Plant Package as well as one order for Inland Transportation, Insurance, Erection, Testing, Commissioning and Guarantee Tests of Pre Treatment Plant Package for Vindhyachal Super Thermal Power Project, NTPC Ltd, stage IV (2X500 MW). The total value of the order is Rs. 33.77 Crores including taxes and duties.

In 2011, the company bagged various orders such as Rs. 115.56 Crores from Neyveli Lignite Corporation Limited, Rs. 379 Crores from Steel Authority of India Ltd, Rs. 27.99 Crores from Steel Hindalco Industries Ltd, Rs. 109.25 Crores from Bhavnagar Energy Company Ltd, Rs 197.33 crore Bharat Heavy Electricals Limited (BHEL), Essar Projects and Maharashtra State Power Generation Co. Ltd.

In 2012, the company received order worth a total value of Rs 66.42 crores from various vendors. The company also bagged two orders worth Rs 70 crore from VISAPower Ltd, two orders worth Rs. 35.44 crore from various vendors, Rs 177 cr orders from NTPC, Unitech Hi-Tech Structures Ltd. The company also received an order from Bihar State Electricity Boardworth Rs. 115.50 crore for manufacturing, supply, erection, inland transportation and insurance of equipment, materials and mandatory spares for Ganga Water Supply Package for Barauni Thermal Power station.

In 2014, the company bagged order worth Rs 305.13cr from various vendors.