Jindal Saw

Considering its diversified product portfolio of pipes supplied to customers in the auto, power, water, sewage and oil and gas sectors, Jindal Saw is well placed to take the advantage of rising demand in the user industry, especially in India wherein the potential is huge. The revival in crude oil prices and investments, particularly in the export market, would also benefit Jindal Saw.

The company currently has an order book of about Rs 3,400 crore (including export order worth Rs 1,200 crore), which provides good visibility for the medium-term. The domestic pipes industry is growing on account of the demand from the water and oil and gas sectors. The new gas discoveries and increased capex on exploration and production activities has led to new orders coming in. GAIL is expected to finalise three new pipelines and could award orders for about 1 million tonnes of pipes over the next 12 months, including orders for 400,000 tonnes of saw pipes by March 2010.

Jindal Saw is expanding its capacities and setting up 200,000 tonne ductile pipe capacity and 100,000 tonne HSAW capacity, which will be operational by June 2011 and December 2010, respectively. On the back of its expansion plans and opportunities in the sector, its revenues and earnings are expected to grow at about 18-20 per cent annually, over the next 2-3 years.