Jindal Saw Ltd. has entered into a strategic alliance with global upstream equipment maker Hunting Energy Services to bring in seamless casing and tubing technology to the country that could partly help substitute imports worth $200 million a year.
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Jindal SAW expects orders up to $300 mn in January-March
Steel pipe maker Jindal SAW India expects orders worth up to USD 300 million (about Rs 1,985 crore) in the last quarter this fiscal.
The flagship firm of the USD 18-billion OP Jindal Group has an order book of about $1 billion at present.
“Our order book at present is close to $1 billion and in January-March quarter this fiscal we expect to get orders worth $200-300 million,” Jindal SAW Group CEO Neeraj Kumar told reporters here.
The company expects to secure large orders from state-run gas utility GAIL.
When asked about the current demand scenario in Oil & Gas sector, Kumar said: “Investment in pipelines for oil sector would definitely get deferred because of the low prices. When it comes to gas, it depends on discovery that you make because in gas evacuation by pipe is necessary…
“So there is going to be an impact for sure, but is it all gloom and doom, the answer is no. In fact, one or two orders are likely to come from GAIL, which will be large orders in India.” On order quantity, he said: “That’s about a lakh tonne.”
At present the water sector — irrigation and drinking — is contributing the most to company’s order book, close to 60 per cent which includes both ductile iron (DI) and mild steel (MI) pipes, he added. Every year revenue contribution keeps changing, but broadly no sector contributes less than 15 per cent and more than 30 per cent, Kumar said.
The firm serves sectors of oil & gas, water, industry and steel intermediatory or steel input. Jindal SAW has also secured a major chunk of a pipeline order for the Telangana Water Grid project. Spread over three years, the project is for providing about 10 lakh tonnes (both DI and MS pipe) of pipe and is worth about Rs 20,000 crore.
In the July-September quarter, Jindal SAW produced pipes and pig iron of around 220,000 tonnes against 230,000 tonnes in the year-ago period. Pellet production stood at around 263,000 tonnes as compared to 309,000 tonnes during the same period. India accounted for 89 per cent of total sales of the firm with remaining 11 per cent coming from overseas markets.
The order book for pipes and pellets of the firm stood at around $800 million, with Large Diameter Pipes accounting for a lions share followed by Ductile Iron Pipes, Seamless Pipes & others and Pellets as of September 2015. The company has a pipe making capacity of 15-16 lakh tonnes.
Jindal Tubular USA LLC acquires the assets of PSL NORTH AMERICA LLC
Acquisition expands Jindal SAW’s presence in North Americas the Premier Global Manufacturer of Water and Natural Gas Transmission Pipe
BAY ST. LOUIS, MS- AUGUST 25, 2014 – Jindal Tubular USA LLC (“Jindal Tubular”), a SPV of Jindal SAW one of the largest global manufacturers of SAW Pipes steel pipe, today announced the acquisition of the assets of PSL North America LLC (the “Company” or “PSLNA”) for $104 million. Belonging to O.P. Jindal Group one of India’s largest business conglomerates with interests spanning the steel, mining, power, industrial gases and ports verticals Jindal SAW is set to service the US market.
PSLNA is a premier manufacturer of SAW Pipes, high pressure steel pipe utilizing state-of-the-art helical submerged arc welding (“HSAW”) technology. Located in Bay St. Louis, MS, the Company’s manufacturing and coating plant is one of the most modern and technologically advanced in the world. The plant is capable of producing over 300,000 tons of pipe per year with diameters ranging from 18″ to 120″ and lengths up to 80′. The Company’s pipes are used primarily for natural gas, petroleum and water transmission lines and construction pilings.
Commenting on the acquisition P R Jindal Chairman, expressed his satisfaction on the fruitful culmination of a court controlled process. “This new acquisition is an expression of Jindal SAW’s expansive business approach that will extend an added advantage to tap into the wide US market insistently.” He averred.
“This acquisition is an important milestone, not only for Jindal SAW Ltd. but for all stakeholders. PSLNA’s modern and advanced manufacturing technology complements our existing operations in the US, further strengthening our asset base and production capacity. We are pleased to invite the members of PSL NA in the Jindal family and participate in our growth story.”
– Mr. Neeraj Kumar, Group CEO & Whole-time Director, Jindal SAW Ltd.
PSL North America LLC brings remarkable experience and expertise in the manufacturing of SAW Pipes high pressure steel pipe utilizing state-of-the-art helical submerged arc welding (“HSAW”) technology. We look forward to teaming up with Jindal SAW as we diversify our product line and continue to leverage our capabilities to be able to deliver better services to our customers. Jindal SAW is an undisputed leader in the sector and we are confident that the company would help us take our business to the next level of excellence for our customers, suppliers and employees,” said Richard D. Gilstrap, Jr., Chief Executive Officer.”
Jindal Tubular acquired all of the assets of PSL NA through a Section 363 sale held in the United States Bankruptcy Court for the District of Delaware. Chris Schaeper and Ira Herman of Thompson & Knight LLP served as legal counsel to Jindal Tubular in the transaction. The sellers received financial advice from Lisa Neimark, Jon Melzerand Eric Williams of Duff & Phelps Securities, LLCand legal counsel from John Knight and Paul Heath of Richards, Layton & Finger, P.A.
About Jindal Tubular USA LLC:
Jindal Tubular is part of the $18 billion O.P. Jindal Group and the U.S. division of Jindal SAW Ltd., which is one of the largest global manufacturers and suppliers of steel and iron and pipe products. Jindal SAW’s principal products include SAW Pipes submerged arc pipes and spiral pipes for the energy transportation sector; carbon, alloy, and stainless steel seamless pipes and tubes for use in industrial applications; and ductile iron pipes for water and wastewater transportation. For the fiscal year ending March 31, 2014, Jindal SAW reported revenues of $1.1 billion.
Jindal SAW closed club facility of AED 465 Mio (app. Rs 775 Crores) for UAE operations
Commercial Bank of Dubai PSC, Commercial Bank International PSC, Emirates NBD PJSC and Mashreqbank PSC acted as Mandated Lead Arrangers and Book runners
Jindal SAW Middle East FZC (JSME), a subsidiary of Jindal SAW Limited, India (which is one of the largest producers as well as market leader of SAW pipes, Seamless tubes and DI pipes globally) has closed a club facility of AED 465 Million (app Rs 775 Crores) for its long-term and growth capital requirements. JSME has set up the largest facility in Abu Dhabi (UAE) to produce Ductile Iron (‘DI’) Pipes of various sizes and focuses on providing high quality techno-economic products and solutions for water transportation and sewage systems in the wider MENA region. JSME is already approved by various MENA region countries for supply of its DI pipes.
Commercial Bank of Dubai PSC, Commercial Bank International PSC, Emirates NBD PJSC and Mashreqbank PSC acted as Mandated Lead Arrangers and Book runners. They were involved in structuring, organizing and executing this transaction, while Alpen Capital (ME) Limited was the Financial Advisor to the transaction. A signing ceremony was held recently in Dubai (UAE) and was well attended by the management team of Jindal SAW, Alpen Capital along with the banks involved in the deal.
About Jindal SAW Middle East FZC (JSME) – www.jindalsaw.org
JSME, a subsidiary of the Jindal SAW Limited, India. Jindal SAW Limited, India is the flagship company of the USD 18 billion O.P. Jindal Group. Jindal SAW Limited is one of the largest producers as well as market leader of SAW pipes, Seamless tubes Pipes and DI pipes in India. Additionally, it also produces pellets and provides various value added products like pipe coatings, bends and connector castings to its clients. Jindal SAW Limited is listed on Indian Stock Exchanges.
For media enquiries, please contact:
Abha Negi
Sr. General Manager Group Corporate Communications & CSR
abha.negi@jindalsaw.org
“Jindal SAW is committed to developing long term business relations in MENA region and to take care of the expanding business needs we have raised this club facility which is largely a substitution of the existing facilities with the new facilities which is not only patient in tenor but also sufficient to take care of near to medium term funding requirements of the business in a more efficient and cost effective manner. We will be working closely with local and regional banks for execution of regional strategy and are extremely thankful to them for their support,” says Neeraj Kumar, Group CEO & Whole time Director, Jindal SAW Limited.
“We are proud to be associated with Jindal SAW and are happy to support them in their growth endeavors in the region. Over the last ten years, Alpen Capital has successfully executed transactions working with some of the largest business conglomerates in GCC and India and we hope that our expertise of the region has benefited the transaction,” says Sanjay Vig, Managing Director, Alpen Capital.
About Alpen Capital (ME) Ltd. – www.alpencapital.com
Alpen Capital (ME) Limited is incorporated as a limited liability company in the Dubai International Financial Centre, Dubai, United Arab Emirates and is licensed by the Dubai Financial Services Authority. Alpen Capital offers a full range of investment banking services including Debt Advisory, Equity Advisory & Capital Markets and M & A Advisory. Apart from the UAE, Alpen Capital Group has offices in Saudi Arabia, Bahrain, India, Oman and Qatar.
Jindal ITF announces project driven partnership with SULA
The project is set to deliver three million tons of coal to Farakka via Hooghly river
Jindal ITF, a wholly owned subsidiary of Jindal SAW Ltd and Sula Shipping & Logistics Private Limited, pioneers of transshipment and barging of coal at Sandheads for the Farakka transhipment project, announced a project driven partnership. Together JITF and SULA are not only the pioneers but have also created the first commercially viable project. This partnership will increase the efficiency of the NTPC-Farakka waterways project which delivers imported coal to Farakka through barges.
The project is set to deliver three million tons of coal to Farakka via Hooghly river and ease congestion on rail rakes and roads. The Hooghly and Ganga waterway, under the new initiatives launched by the government will soon form a major supply route to and from the hinterland of North and East Indian industrial areas. The waterway is expected to move significant amount of coal in the next decade. It is further expected that transloading offshore in the NE Bay of Bengal and barging inland will increase to about 24 million tons in the next few years, bringing huge cargo volume directly to Haldia and Kolkata ports and riverine industries. Such potent and cost effective movement will bring about a paradigm shift lowering costs in an eco-friendly manner.
The Government of India has made the development of Inland waterways a top priority. Inland Waterways Authority of India – IWAI is working on multiple projects that will need similar services that are already being provided by JITF and SULA. This partnership combines the existing strengths of both the companies for the expected surge in Inland waterways traffic as well as the offshore transshipment business.
Both JITF and SULA have signed an MOU to give effect to this arrangement. The operations under this arrangement will be led by Capt. Shrikant Chandra – COO and Country Manager of SULA. Both JITF and SULA announced their satisfaction over the arrangement. The integration process of the assets and teams will commence immediately.
For further information, please contact:
Abha Negi – Corporate Communications, Jindal SAW Ltd.
abha.negi@jindalsaw.org
About Jindal ITF Ltd.
Jindal ITF is a subsidiary of Jindal SAW Ltd. that redefines the existing norms in the areas of Water, Wastewater & Solid Waste Management, Logistics and Transportation Equipment Fabrication, keeping in mind the impact that a sustainable ecosystem will have on future generations. Having been involved in laying a strong foundation for a secure and sustainable future, Jindal ITF continues to add economic and social value to the Indian as well as global economy.
About SULA
SULA SHIPPING & LOGISTICS PVT. LTD. is a solution driven and forward thinking company offering global logistics services and solutions on a global basis. SULA Logistics provides cost effective tailored made solutions to its customers for the problems linked to draft restrictions, shallow water and port congestion. SULA solutions drives to improve the traditional concepts of unloading the bulk cargoes in fast developing & rapidly growing economies, where port infrastructure is lacking or ports suffer from congestion. SULA Self-Unloaders can load / discharge the cargo with a rate of 10,000-60,000 mt/day even in shallow water ports with or without barges. SULA’s solutions are also ideal for long term development of Inland waterways and canals through the length and breadth of the country.
BSE capital goods index up 2.91%
Mr. Indresh Batra, MD, Jindal SAW Ltd. shares his views on the budget 2012-13
The Union Budget 2012-13 presented by the Hon’ble Finance Minister provides great opportunity for the infrastructure sector. It lays emphasis to meet growing needs of infrastructure sector with signs of an economic recovery in India. For India to attain its envisaged 6.9% growth during the coming financial year, the requirement for sustainable infrastructure development is crucial to provide impetus to the economic activities and achieve optimum resource utilization.