Insights from the Plant Visit and Management meet
Aluminium plays a quiet yet pivotal role in everything around us. You may be surprised how this versatile metal impacts our daily lives in ways we often overlook. From the lightweight yet durable aluminium cables that power our homes and workplaces, to the aluminium powder used in AAC blocks that are shaping the very foundations of our cities, aluminium is everywhere. Also, let’s not forget the kitchen staple, aluminium foil, preserving our food, keeping it fresh and hot, while also being indispensable in packaging everyday items like curd and medicine. It’s remarkable how this metal silently powers industries, builds our homes, and even nourishes us, all while staying out of the spotlight.
This week on LEARNING OF THE WEEK, we’re sharing insights from our recent plant visit to MMP Industries (manufactures multiple products using aluminium) production facilities at Umred, Nagpur. We had the opportunity to witness firsthand the meticulous processes that transform raw aluminium into essential products. From their aluminium powder production to the precision in manufacturing foils, the facilities reflected the company’s commitment to quality in every step of production. Additionally, we also got an opportunity to interact with the management and gain business insights from them first hand. Let’s dive in…
MMP Industries Ltd. (MMP) – Brief Overview
Brief History and Revenue Mix (FY25)
Founded in 1973 as Semi Conductor Packages Pvt. Ltd., the company entered aluminium powders in 1984 through a technical collaboration with Belgium’s AVL and adopted the name Maharashtra Metal Powders Pvt. Ltd. In 1994, it became MMP Industries Ltd. and converted into a public limited company. Today, MMP is a leading manufacturer of aluminium powder, aluminium foils, and aluminium conductors.
Following is the scale and revenue mix of the company for FY25 (for more financial details, refer to Attachment I & II):
(Source: Company, Bastion Research)
Subsidiaries, JVs and Associates
MMP has THREE wholly owned subsidiaries, ONE associate and ONE JV companies. Following is the list along with basic details:
1. MMP Electricals Pvt. Ltd. (WOS): This is MMP’s entry into composite insulators used in high voltage transmission lines and substations, especially where harsh weather can defeat traditional insulators. This adds the missing piece so MMP can offer a full transmission solution across conductors, cables, and insulators..
2. MMP Cables Pvt. Ltd. (WOS): This is MMP’s foray into LV power cables, serving domestic, commercial, and industrial electrical systems. This builds MMP’s presence in end-use cable solutions.
3. MMP Alutech Pvt. Ltd. (WOS): MMP also aims to achieve backward integration into wire rod manufacturing to lift margins in cables and conductors and reduce dependence on external suppliers. Planned investment: Rs 13 to 15 Cr.
4. Star Circlips & Engineering Ltd. (Associate): Manufacturer of circlips, retaining rings, washers, shims, and formed components for the auto and auto-components industry. MMP holds ~26.1%.
5. Toyal MMP India Pvt. Ltd. (JV): Joint venture with Toyo Aluminium, Japan to produce special-grade aluminium pastes. MMP holds 26%.
Installed Capacity and Expansion Plans
MMP Industries Ltd has FOUR production facilities (Units) situated in and around Nagpur. The total land that the company possesses is 100 acres, out of which 60 acres are currently utilized with the balance kept for future expansions. Here are the details:
Unit I (Maregaon, Bhandara) – Manufacturing of Aluminium Powders and Conductors/Cables.
Unit II (Hingna, Nagpur) – Manufacturing of Aluminium Powder
Unit III (Umred, Nagpur) – Manufacturing of Aluminium Powder and Foils
Unit IV (Umred, Nagpur) – Manufacturing of Composite Insulators
Following is the installed capacities (in MTPA) of MMP across product segments. Additionally, the company is also undertaking expansion in “Pyro & Flakes Powder” and “Conductors/Cables”. As per the guidance provided in Q1 FY26, both these projects will be commissioned by Q3 FY26.
(Source: Company, Bastion Research)
Leadership Team
The leadership team consists of the Bhandari family and professionals who are responsible for efficiently running the show at MMP Industries Ltd.
(Source: Company, Bastion Research)
MMP Industries Ltd. (MMP) – Plant Visit Insights
During our visit to Umred, Nagpur, we got an opportunity to witness the production of “Aluminium Powder”, “Aluminium Foil” and “Composite Insulators”. Following are the insights that we collected:
1. Aluminium Powder Facility
Aluminium Powder is a fine, granular material produced from high-purity (99.7%) electrolytic-grade Aluminium ingots using advanced atomization and milling techniques. Following are its applications and MMP’s clientele:
(Source: Company, Bastion Research)
Production Process – Aluminium Powder
Step 1 – The production process starts with taking high-purity (99.7%) electrolytic-grade Aluminium ingots, which are sourced from leading companies like NALCO and BALCO. These ingots are melted to liquid, which is converted to powder form.
Step 2 – The converted powder gets graded based on “Fineness” using a special grading process.
Step 3 – After grading, the powder goes into the ball mill. In this process, the powder gets further finer. MMP has multiple ball mills, which are responsible for undertaking this step.
Step 4 – Now, the powder is stored in containers for stabilization. The stabilization time depends on the “grade.”
Step 5 – In the process of stabilization, due to it being stored in a container, the power gets certain properties that come from the container and are not required by the end customer. To mitigate this impact, this step of “Mixing” is undertaken which makes the powder usable by the end customer.
Step 6 – As a last step, the powder is tested for various properties in a testing lab. Each lot gets tested before getting dispatched to the customer. MMP manufactures FOUR different grades of aluminium powder based on the end application.
(Source: Company, Bastion Research)
Other Important Insights
MMP sells this product directly to the end customer. The company has not engaged any distributors for the sale of aluminium powder. The existing customer base of the company is 500+.
The company mostly operates on confirm orders. In terms of pricing, due to its unmatched quality and scale in India, MMP’s product commands a premium (typically Rs. 10-15/kg) compared to peers.
In FY26, MMP expects this division to grow at single-digits due to weak demand, slowdown in exports and the recent fire incident which resulted in a temporary shut-down for almost two months in Q1 FY26. This incident resulted in a volume loss of ~20%.
2. Aluminium Foil Facility
Aluminium foil is a thin sheet of aluminium metal manufactured through rolling and laminating processes, known for its versatility and excellent barrier properties. If you are still wondering, this is the same foil paper that is used in our households to pack food or is found in packaging of various edible items and medicines. Following are the applications of MMP’s foil products and its clientele:
(Source: Company, Bastion Research)
Production Process – Aluminium Foil
Step 1 – The production process starts with taking “Foil stock – 350 micron” and making its thin by reducing the same upto 7 micron based on the end product required. This process is done using a machine called “Rolling Mill.”
Step 2 – Once the thinning process is completed, the next step is to “Seperate” the material based on the requirment of a particular customer. In simple terms, this step involves cutting the material as per customer’s requirment.
Step 3 – After seperation, the foil stock goes through the “Annealing” process which results in softening of output. It is important to note that this step is only required in all end-product cases.
Step 4 – The material is then “Coated/Laminated.” This is done to give sealing characteristic to the foil. Recall the back side of your medicine packet which is sealed using foil and you can push meds out as required.
Step 5 – After giving the foil the required characteristics based on its end use, the foil is slitted as per customer requirments for the process of printing. Again, recall your medicine packet and how it has brand imprints (logo, tagline, product specs, etc.)
Step 6 – As mentioned above, printing is done as the final step before dispatching the product to customers. In cases where printing is not required, dispatch take place to the customer directly.
(Source: Company, Bastion Research)
Other Important Insights
MMP manufactures two type of foils, a) Laminated Foil and b) Blister Foil (used in push meds). The company has scaled this business from just Rs. 2 cr to Rs. 154 cr in FY25.
This is a thinly profitable (operating level) segment where the company has constantly lost money since FY21. However, this segment turned black in FY25 with a 2% operating profit. MMP believes that it has achieved a turnaround in this division.
Going forward, MMP aims to expand its offerings in this division by adding products like “Leading Foil” – found in curd packs, “Tager Foil” – found in cheese cube packing, Aluminium simi-rigid containers, etc. As per the company, this segment should only improve from here on. In fact, as per the lastest guidance, MMP is expecting this segment to register a 26% topline growth in FY26.
3. Insights on recent and upcoming forays
As mentioned, the company has planned a foray into THREE businesses with the help of THREE subsidiaries. The broader idea here is to diversify its manufacturing range from aluminium processing to the high-demand sectors of power distribution and transmission.
1. MMP Electricals Pvt. Ltd. (WOS)
Product: Composite Insulators.
Expansion Plan: Planned in TWO phases. Phase I: up to 33 kV and Phase II: up to 765 kV
CAPEX: Phase I – Rs. 17-18 cr and Phase II – Rs. 15-20 cr.
Latest Update: Phase I expansion is over, and commercial production has started from 30th June 2025. Phase II expansion is underway and is expected to be completed by Q4 FY26.
Other Important Insights
This business possesses entry barriers as this product is used by various state governments. This is a very quality-sensitive product which typically takes ~6 months to get approved. The tricky part is that each state has its own approval process.
If you imagine a typical power distribution line that consists of poles at a certain distance. Each pole has 6-12 insulators, and the distance between poles depends on the topography.
After both phases are done, this plant has the ability to do asset turns of 3.0-3.5x. Therefore, at ~Rs. 40 cr turnover, MMP can generate revenues worth Rs. 120-140 cr. Management believes that this can be achieved by FY27.
2. MMP Cables Pvt. Ltd. (WOS)
Product: LV Power Cables and Conductors
Initial Strategy: Initially, the idea of the company is to stick to 6-7 sizes and FIVE states, namely, Maharashtra, Chhattisgarh, Telangana, MP and Odisha. Additionally, this business will initially start as a B2B business with aspiration to develop a brand with the help of distribution over time.
CAPEX: Planned investment of Rs. 85-90 cr over the next 2-3 years.
Latest Update: This project was initially planned at Bhandara but is now being relocated to Butibori MIDC, where an existing factory shade will enable faster execution and 10-15% cost savings.
Other Important Insights
The idea of the company is to sell products in a bundle, with each bundle comprising cables, conductors and insulators. As per the management, this bundle can fetch MMP EBITDA margins of ~14% which is significantly higher than what the company has ever achieved.
3. MMP Alutech Pvt. Ltd. (WOS):
Product: Aluminium Wire Rod
Initial Strategy: The strategy here is to achieve backward integration which will result in improved margins, reduced dependence on external sourcing and make the supply chain more stable.
CAPEX: Planned investment of Rs. 13-15 cr subject to board approval.
Conclusion
In conclusion, our visit to MMP Industries production facilities give us a clear understanding about how the company has positioned itself as important player in the aluminium processing industry. Our visit to Umred, Nagpur, not only revealed the meticulous production processes behind their aluminium powders, foils, and composite insulators but also showcased the company’s forward-looking vision for growth and diversification.
As MMP diversifies its business into high-demand segments like composite insulators and power cables, it is strategically enhancing its value proposition in the power distribution and transmission sectors.
This visit has undoubtedly provided us with valuable insights into the company’s business model and its growth strategy. We look forward to seeing how these initiatives unfold as the company continues to capitalize on its strengths, diversify its offerings and expand its reach.
Attachment I – Growth Drivers
Attachment II – PNL Snapshot
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