At ₹1,000 cr, Essar Steel’s pipe mill order book up 25%  

Essar Steel has witnessed a sharp rise in demand for large diameter pipes from infrastructure projects in India and exploration of natural gas abroad.

The order book of the company’s pipe mill at Hazira in Gujarat has increased 25 per cent in the last six month to ₹1,000 crore.

Fresh orders will be enough to operate the pipe mill of 6 lakh tonnes a year at its optimal capacity for six months.

The company has a plate mill capacity of 1.5 million tonnes a year and steel production capacity of 10 mt at Hazira. HS Bedi, Chief Executive Officer (pipe mill) of Essar Steel, told BusinessLine the demand for large diameter pipes has gone up substantially in the last few months as most state governments are expanding and relaying their drinking water supply infrastructure.

The Gujarat government recently announced two large projects to interlink the Narmada canals and the Sauni Yojna project, which involve supply of 80-130-inch diameter pipes with three layer of poly ethylene factory coated.

The pipes coated at the factory will not only enhance the quality but also help shorten duration of project execution, he added.

The company has earmarked an investment of ₹25 crore for setting up a second coating plant at Hazira.

It is also looking for a third party investment to build a concrete coating facility closer to its unit.

The concrete coated pipes are for projects executed in ultra-deep waters.

In the wake of rising demand for large diameter pipes, Essar Steel recently increased its capacity to manufacture HSAW (Helical submerged arc-welding) pipes of 134-inch from 100 inches.

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