Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / Welspun plans plant in US, raising domestic capacity
BackBack

Welspun plans plant in US, raising domestic capacity

Welspun plans plant in US, raising domestic capacity

Welspun employee works on pipes at the company’s manufacturing facility in Little Rock, Arkansas. Premium

Welspun employee works on pipes at the company’s manufacturing facility in Little Rock, Arkansas.

Mumbai: Pipe maker Welspun Corp will set up a new plant in the US and increase capacity of its plant in south India by 50%, despite “challenging" short-term global outlook, it said on Thursday.

Welspun employee works on pipes at the company’s manufacturing facility in Little Rock, Arkansas.

The US plant will be for electric resistance welded pipes with a capacity of 200,000 mtpa plant and entails an investment of $76 million. The plant will cater to the company’s oil and gas clients there, it added.

The project is expected to be completed in 12 months and shall achieve optimal utilisation in FY14, the pipemaker said.

The company makes steel pipes and plates for infrastructure and oil and gas segments.

On the impact of global uncertainty, the company said the order flows to the pipe industry have been uneven due to the volatility.

“While demand for pipes continues to be robust globally, current deferment of orders by large oil and gas companies may result into lumpy order flows in the near future," it added.

Welspun added orders worth 1,100 crore during the September quarter. As of September-end, its combined order book for pipes and plates was 4,420 crore.

Earlier on Thursday, Welspun reported a 60% fall in its July-September net profit to 710.8 million on net sales growth of 10% to 2,035 crore.

The sharp decline in net profit has been despite good operational performance and on account of mark-to-market forex losses, higher costs for buying expensive gas for its plant and higher interest costs, Akhil Jindal, director, Welspun Corp, told Reuters.

“We are hoping to recover that (forex loss) as we go along," he said.

Shares in the firm, which the market currently value 427.84 million, have shed 38.3% so far in 2011, more than the benchmark’s fall of 15% during the same period.

On Thursday, the stock ended 1.65% higher at 104.65, in a Mumbai market that ended flat.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 03 Nov 2011, 05:39 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie