PSL bets big on new units:
LEADING pipe manufacturer PSL has announced ramp-up of its pipe manufacturing capacity through new production units in Tamil Nadu and Andhra Pradesh, which have been set up with an investment of about Rs 270 crore. The new facilities were commissioned a couple of days ago.
The two new facilities have been strategically positioned in these locations to enhance the company's regional manufacturing presence near energy and infrastructure projects coming up in the eastern and southern regions.
The company expects an upward trend in demand for steel pipes from various projects being implemented by large companies such as GAIL, RIL, Cairn Energy, GMR and others.
The company, which makes high-grade large-diameter Helical Submerged Arc Welded pipes, has already set up units at Visakhapatnam and Madhuranthakam, about 75 km from Chennai, with 300,000 tonnes and 150,000 tonnes annual capacities, respectively. The expansion comes after the company successfully met the requirements of KG Basin gas offtake pipeline projects. The Rs 3,550 crore company has funded the expansion through the funds it raised last year about Rs 360 crore via QIP and ECB.
“By commissioning the two facilities on schedule, and within close proximity to the Krishna-Godavari Basin, both PSL and its clients will gain from the freight-savings that will accrue by eliminating the costly transportation of pipes that otherwise would have been necessary from other, more distant pipe supply-centres.
Hi Rajeev,
ReplyDeleteThanks a lot for the update on PSL.
Regards,
Sajith
Cant really understand whats wrong with this company. All other companies in this sector have rallied with the market and this one has actually come down. May be market knows better than all of us. I get a feeling that the management somehow does not have a proper handle of the business and are not managing the risks well. Even order flow is pretty muted. The sector no doubt is in good shape and will surely boom but i am now jittery whether PSL will benefit from all this.
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