Welspun-Gujarat Stahl Order Book at Rs 5500 Crores

Welspun-Gujarat Stahl Rohren Ltd has announced about the New Orders and Order Book of the company. The Company rated amongst the top 3 SAW Pipe Companies in the world by CLSA Asia Pacific Markets (July 2007), bagged prestigious pipeline orders worth over Rs 2000 Crore ($ 500 million, taking the total order book position to over Rs 5,500 Crores ($ 1.4 billion), one of the highest in the Industry.

The Expansion Plans of the company is as follows: The Company is increasing its LSAW Pipe capacity by 300,000 tons at SEZ, Gujarat, India. Besides addressing the burgeoning demands for the critical line pipes, this facility shall enable income tax benefits on the export orders. Since the Company already possess critical equipments, this facility will be operational in just 12 months time i.e. by March 2009 and shall entail investments of Rs 298 Crs ($ 75 million). Besides this, the Company has taken up capacity expansion and de-bottlenecking of HSAW (Spiral) pipes at its existing facility at Anjar. Post completion, HSAW capacity will increase to 550,000 tons from 400,000 tons, with additional expenditure of approx 100 Crs ($25 million). Both the facilities shall be funded by mix of internal accruals and long term loans. On completion of above facility, the Company shall have annual capacity of 1.75 Million Tons making it one of the largest Line Pipe Companies in the World.

The Current Status of Plate-turn-Coil mill & U.S. project: The Company started trial production of its Plate-cum-Coil Mill by producing India's widest plate of 4.5 meters. This 1.5 MTPA facility will be fully operational by the end of this financial year thus contributing significantly in FY 09. Similarly, the implementation of 300,000 tonne project in Little Rock, Arkansas, is going as per schedule and the facility is likely to be commissioned by July 2008. Post completion of U.S. and Indian project, the Company's capacities will reach 1.6 MTPA, making it one of the largest line pipe Companies in the world.

Addressing the gathering, Mr. B K Goenka, VC & MD said, "The first halt of the year has been outstanding, we not only achieved excellent financial results but also sowed seeds for our future growth by bagging prestigious orders and embarking new capacity additions. We strongly believe that we are poised to become one of the biggest and most respected one-stop-solution providers for steel pipes in the World.

Echoing his comments, Mr. Braja Mishra, CEO & ED, of the Company said, "We are growing at a rapid pace in our aggressive growth phase. Team Welspun has ensured that we remain focused, adhere to 'Engineeing Excellence' and continue to delight our customers with flawless product quality and timely delivery schedules."

Source : Equity Bulls

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