Jindal India Commissions 240,000-Ton Pipe Mill in West Bengal; Indian Pipe Industry Bullish on Growth Prospects

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Researched by Industrial Info Resources (Sugar Land, Texas)--Jindal India Limited (Howrah, West Bengal), a flagship company of the B.C. Jindal Group and one of the leading manufacturers of black and galvanized steel pipes and tubes in India, recently commissioned a pipe mill in West Bengal. The new medium-diameter electric-welded pipe mill, with a capacity of 240,000 tons per year, is located at Jangalpur Works in Howrah, West Bengal.

The pipes produced at the new mill range from 6.625 inches (168.3 mm) to 20 inches (508 mm) in diameter with a wall thickness of 0.125 inches (3.2 mm) to 0.562 inches (14.3 mm). The length of the pipes span from five to 18 meters produced at a max welding speed of 45 meters per minute. The manufactured pipes at the mill conform to ASTM, API, BS, DIN, JIS, and IS specifications with beveled and plain ends. The state-of-the-art facility has shear end welders along with a spiral accumulator to ensure the continuous feeding of coils. In addition, a solid state HF welder of 1,000 kilowatts guarantees high-quality welding.

Jindal India, a renowned name in the country's steel industry, will supply pipes from the mill to projects in the oil and gas sector. There is a considerable demand for the pipe major's products in industrial infrastructure and energy projects for building cross-country pipelines, specifically in the eastern region. With a slew of steel and power projects coming up in the eastern states of Orissa, Jharkhand and West Bengal, Jindal India's pipes will be used to transport materials. Apart from the energy sector, Jindal India's pipes are expected to play an important role in large-scale housing projects to transport potable water to construction sites and to the houses.

India's pipe industry is bullish on growth prospects as major pipe manufacturers Jindal Saw Limited (BSE:500378) (Mathura, Uttar Pradesh), PSL Limited (BSE:526801) (Kachigam, Daman), Welspun Gujarat Stahl Rohren Limited (BSE:532144) (Kutch, Gujarat) and Man Industries (India) Limited (BSE:513269) (Mumbai) currently have good order books. There is also potential to capture orders totaling to $14 billion over the next five years. Steel pipes used to transport oil and gas have a market penetration level of 32% in India compared with an average of 79% globally. The pipeline network, spanning a mere 8,400 miles as of 2006, offers tremendous potential for growth for pipe companies locally. Penetration of cement pipes used for sanitation is also low at 33% compared with 91% in Sri Lanka and 100% in France. A positive trend is forecast for the industry with more oil and gas discoveries, the demand for infrastructure projects and a boom in real estate.

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