Midwest Ltd (MAINBOARD)

IPO Details

About Company

Incorporated in 1981, Midwest Limited is engaged in exploration, mining, processing, marketing, distribution, and export of natural stones. The company is a leading producer and exporter of Black Galaxy Granite, a distinctive variety known for its golden specks.

Operations and Infrastructure:
The company operates 16 granite mines across six locations in Telangana and Andhra Pradesh, producing multiple granite types such as Black Galaxy, Absolute Black, and Tan Brown.
It also runs two processing facilities — one in Telangana and one in Andhra Pradesh — for large-scale granite cutting, polishing, and finishing.
Additionally, Midwest has developed a resource base at 25 locations across Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu to support future mining expansion.

Global Presence:
Midwest Limited has a strong international footprint, exporting to 17 countries across five continents.
Key export markets include China, Italy, and Thailand, with major clients such as MP STENEKO AB (Sweden), GI-MA STONE SRL (Italy), Quanzhou Xingguang Stone Co., Ltd. (China), The Xiamen Group (China), and King Marble and Granite Co. Ltd. (Thailand).

Strength

Strong Distribution Network: Midwest has an extensive distribution system backed by long-term contracts and interest-free advances, ensuring steady raw material supply and effective sales across multiple territories.

Captive Premium Quarries: The company owns exclusive Black Galaxy granite quarries in Chimakurthy, providing access to a high-value stone widely used in luxury and landmark projects.

Advanced ERP Integration: Midwest was the first in the industry to adopt an SAP-based ERP system integrated with real-time machine sensors, enhancing efficiency and reducing manual intervention.

Weakness

Regulatory Investigation Risk: A CBI notice received by Promoter Mr. K.R.R. Reddy regarding BEML Midwest Limited could impact the company’s reputation and management focus if further actions arise.

Reserve Estimation Uncertainty: Actual natural stone reserves may differ from estimates, and price or cost changes could make certain mines uneconomical to operate.

Approval and Compliance Risk: The company’s operations rely on timely regulatory approvals, and any delay or failure in obtaining or renewing them could disrupt business activities.