Newmalayalam Steel IPO

About Newmalayalam Steel IPO

Newmalayalam Steel, incorporated in 2017, is a prominent manufacturer of galvanized pipes, tubes, and sheets, serving the Kerala market under the brand name ‘Demac Steel.’ The company began its operations with a focus on addressing the construction industry’s need for durable materials that can withstand Kerala’s challenging weather conditions. In 2018, Newmalayalam Steel expanded its production capabilities by installing an electric resistance welding tube mill with a capacity of 3,500 MT at its manufacturing unit in Mala, Thrissur. The company’s products are essential in household applications, such as roofing, where galvanized pipes and tubes reduce heat, prevent leakage, and offer the advantage of enhanced durability and rust resistance.

To meet growing demand and strengthen its market presence, Newmalayalam Steel expanded its manufacturing capacity in 2019 by adding another tube mill, increasing its installed capacity to 4,000 MT. The company has established a robust distribution network across Kerala through a network of dealers, local contractors, and retailers. This extensive dealer network has been instrumental in making ‘Demac Steel’ a well-known brand in the region. Newmalayalam Steel has also entered into formal agreements with most of its dealers, offering competitive margins and fostering long-term relationships that benefit both parties. This approach has contributed to the company’s consistent market penetration and expanding customer base.

The company’s commitment to product quality is evident in its stringent quality control measures. Newmalayalam Steel operates a dedicated Quality Division at its manufacturing unit, which ensures that raw materials, semi-finished products, and finished goods meet the highest standards. The division conducts a variety of tests, including wheat analysis, to ensure compliance with customer specifications. With a well-equipped in-house laboratory and continuous monitoring throughout the manufacturing process, the company ensures that quality is embedded at every stage, from procurement to final product delivery.

Newmalayalam Steel’s vision of delivering superior quality products has enabled it to establish a solid foothold in Kerala’s construction industry. The company’s ability to adapt to market needs, invest in sales and marketing initiatives, and leverage a diversified marketing network has allowed it to build a strong brand presence. With a focus on customer satisfaction and innovative marketing strategies, Newmalayalam Steel is poised for continued growth and success in the galvanized pipes, tubes, and sheets market.

Newmalayalam Steel Limited prepares for its Initial Public Offering (IPO), the proceeds from the Fresh Issue will be allocated towards critical objectives

1. IT / Technological Upgradation of existing manufacturing facility 
2. Expansion of the existing solar facility for power generation
3. Funding of expenditure towards civil construction of new factory shed cum storage facility within the existing factory premises situated at Kerala.
4. Advertising, Marketing and Brand Building
5. Funding incremental working capital requirements of our Company 
6. Issue related expenses 
7. General Corporate purposes