Dee Development Engineers, a major player in process piping solutions, has commissioned a modern manufacturing plant with capacity of 9,000 tonnes per annum at Anjar, Gujarat.

The second phase of expansion will take its overall capacity to 12,000 tonnes per annum.

The facility will primarily cater to the needs of the oil and gas piping sector and the company has plans to invest ₹250 crore in the expansion project.

Of this, ₹160 crore will be allocated to enhance the plant capacity to 27,000 tonnes from 12,000 tonnes. The remaining capacity of 15,000 tonnes will be commissioned by October.

Backward integration

As part of backward integration, the company will invest ₹90 crore in setting up a seamless pipe manufacturing facility, specialising in high wall thickness pipes, with a planned annual capacity of 7,000 tonnes. The seamless pipe facility is expected to be commissioned by next January.

Of the investment of ₹260 crore, ₹150 crore has already been invested, partly financed by bank borrowing of ₹40 crore. The remaining investment of ₹110 crore will be funded through debt.

Krishan Lalit Bansal, Chairman and Managing Director, DEE Development Engineers, said the expansion is part of the company’s long-term growth strategy, aimed at catering to the increasing demand for high-quality process piping solutions and high wall thickness pipes in the oil and gas sector.

The company is targeting a three-fold increase in revenue and the EBITDA margin enhancement over the next three to five years, he said.

Span over 47 acres, the plant will generate about 100 direct employment opportunities and about 500 additional jobs for labourers.

Market research projects a 7 per cent annual growth rate for the sector over the next decade, driven by technological advancements and rising demand for oil, gas, and hydrogen solutions.

Published on January 21, 2025