Srikalahasthi Pipes plans ₹55-crore capex

M Somasekhar Hyderabad | Updated on January 20, 2018 Published on May 13, 2016

GS Rathi

Srikalahasthi Pipes Ltd has begun a project to expand as well as create new facilities, at an investment of over ₹150 crore.

The company’s board recently approved a capital expenditure of ₹55 crore to put up two units of ferro alloys of 9 MVA capacity each. In addition, a double wall corrugated (DWC) pipes manufacturing unit will be set up. All these new units will come up in the company’s 300 acre complex in Rachagunneri village, about 12 km from Srikalahasthi in Chittoor district of Andhra Pradesh.

According to GS Rathi, Whole Time Director, the DWC pipe plant, with an investment of ₹25 crore, will meet the growing demand of pipes required for sewerage and drainage. It will be commissioned by March 2017.

The ferro units will produce ferro silicon, silico manganese and ferro manganese, of which 25 per cent will be for captive consumption and the balance will be sold in the domestic and export markets. Rathi told BusinessLine the ongoing expansion project of ₹100 crore for upgradation and modification of blast furnace and capacity expansion of its DI (ductile iron) plant will be completed by the end of September.

The ₹1,145-crore company is betting big on DWC pipes, which are increasingly being used worldwide for sewerage and drinking water lines.

With an average life of 10-15 years, RCC (reinforced cement concrete) pipes get corroded easily, apart from being heavier and shorter in length. In contrast, DWC pipes have a 50-year life and very robust.

Srikalahasthi’s order book is healthy, said Rathi, adding that the Telangana government had given it a ₹1,151-crore order for ductile pipes for its water grid project and the Hyderabad MetroWater Works last year.

Published on May 13, 2016
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