1. Steel Pipe Industry Sana Khan (12 th June 2009)

2. Industry Overview Indian Pipe industry is among the world’s top manufacturing hub and one of the major exporter. Penetration level of pipes is only 32% in India Steel and Coal prices, have been extremely volatile. Demand had witnessed a slowdown…

3. Demand Cheapest and eco-friendly source for transportation of Oil & Gas. Exploration & Production activity. Building and construction. Irrigation and water transportation. Sewage Transportation. Replacement demand of pipes from US.

4. Cheapest and eco-friendly source for transport Per tonne of oil product transport cost are (aprox) ModeRs/km Pipe1.30 Rail2.20 Road3.02

5. Types of Pipes Seamless Pipes LSAW Pipes HSAW Pipes ERW Pipes DI Pipes

6. Applications Seamless- Offshore Oil & Gas (extreme conditions) LSAW- Oil, Gas, Petrochemicals, Dredging HSAW- Water, Oil, Gas ERW- industrial purpose, sewage, agriculture, irrigation. DI- Water supply, Sewage.

7. Global Demand-Supply Capacity (HSAW+LSAW) tons25.1 mn Operational Capacity (65%)16.3 mn Project Planned Over 5 yrs (km)302686 Annual pipeline projects (km)60537 Annual Pipeline requirement (tons) (300 t /km) 18.2 mn Supply Deficit p.a (tons)(1.9 mn)

8. Demand outlook over next 5yrs

9. Outlook- Positive Stabilizing Oil Prices. Increased Govt. spending. Expected increase in demand for gas. Production-consumption mismatch. Robust replacement demand.

10. Company Specific

11. Welspun Gujarat Stahl Rohren Ltd Second largest pipe producing co. in the world. Supplied pipes for world deepest pipeline in Gulf of Mexico. Increase its capacity from 1.5 MTPA to 1.8 MTPA. Producer of HSAW, LSAW & ERW pipes. The company has announced de-merge of its Plate- cum-Coil division into a 100% subsidiary. Currently the company has a strong order book of US $1.9bn.

12. Jindal Saw Formerly known as Saw Pipes. Producer of seamless tubes, saw pipes, ductile iron pipes. Increased its capacity to 2.05mtpa from 1.25mtpa in 2008, across all products. Order book at US$ 840mn, at the end of Q1 of CY2009.

13. Maharashtra Seamless One of the flagship of Jindal Group. Aims at doubling its seamless pipe and tubes annual capacity to 700000 tonne by FY11. Producer of Seamless & ERW Pipes. Order Book position close to Rs 501cr. Cash rich and debt free company

14. PSL Ltd Production capacity in excess of 1 mn ton. India’s largest producer of HSAW pipes. It also provides coating facility in India as well as abroad. PSL Ltd plans to raise $50mn via ECB, for expansion. Order book position representing local & global orders are over Rs 6500cr.

15. Man Industries It has manufacturing facility for LSAW & HSAW pipes Also for various types of Anti-Corrosion Coating Systems. CST exemption for 11yrs; excise duty exemption for 5yrs for Anjar facility. Total order book stands at Rs 2000crs. (April-end)