Geopolitical tensions in West Asia are prompting countries to look for safer ways to move oil and gas from the energy-rich region, bringing focus on new and expanded pipelines to bypass vulnerable maritime routes. This is opening up opportunities for India's steel pipe makers, with Welspun Corp, Jindal Saw, Man Industries and Ratnamani Metals ramping up presence in the region to tap the global demand for steel pipes and tubes used in oil and gas transportation, water infrastructure and city gas distribution.
Welspun's management, in its Q1FY27 earnings call, said its outlook for the Saudi Arabia market is very encouraging, with strong demand expected to build up. “Recent geopolitical developments are further supporting the trend, with the company seeing increasing demand for line pipes in the coming weeks, months, and years,” the company said.
Jindal Saw, in its earnings conference for the quarter, also said that rising geopolitical risks across the Middle East and North Africa (MENA) region are encouraging countries to invest in safer overland energy infrastructure.
The development is creating opportunities in new pipelines and expansion of pipelines for projects designed to reduce dependence on vulnerable maritime routes such as the Strait of Hormuz, Jindal Saw’s management said, adding that the shift is expected to support demand for pipe manufacturers.
The theme is also reflected in the shares of these companies. Welspun Corp has gained 133% in the year so far, Jindal Saw has surged 59% while Man Industries has gained 52% in the year so far. On the other hand, the performance for Ratnamani Metals and Tubes has been weak, with the shares down 1.3% over the period, mostly due to weak earnings.
Companies take cue
Jindal Saw is expanding its manufacturing presence in West Asia to benefit from growing demand for energy and water infrastructure. It believes that having local manufacturing facilities in the UAE and Saudi Arabia will give it an advantage over companies that only export from India by reducing delivery times and transportation costs.
Jindal is setting up a seamless pipe plant In Abu Dhabi with an annual capacity of 300,000 tonnes that will cater to the oil and gas sector in the UAE and the wider MENA region. In Saudi Arabia, it has formed a joint venture with a local partner to set up a 600,000-tonne project. These plants will cater to Saudi Arabia’s growing demand for water, oil and gas infrastructure.
Welspun Corp, with a global order book of ₹24,750 crore, already has a presence in Saudi Arabia. “Beyond meeting Saudi's domestic demand, these facilities are strategically positioned to capture lucrative post-war commercial opportunities in the region, aligning with the broader MENA shift towards alternative energy supply routes that circumvent the Strait of Hormuz,” said Vinay Gupta, head of treasury at Jindal Saw.
Ratnamani, on the other hand, is set to benefit from a subsidiary it set up in 2025 with Saudi Electrical Materials Co Ltd (Sesco) to set up a facility for steel tube and pipe products to be directly manufactured in Dammam, Saudi Arabia. The facility, expected to be completed in 2028, would serve as a local supply vehicle to provide critical tubing solutions directly to end-consumers across Saudi Arabia and the broader Gulf Cooperation Council (GCC) region, the company said. The sectors it will cater to include oil and gas, desalination, power generation and industrial infrastructure projects.
Man Industries had acquired National Pipe Co (NPC) in Saudi Arabia in May to strengthen its pipeline business and to position the company to benefit from Saudi Arabia’s long-term energy infrastructure growth.
Industry experts say that the ongoing US-Iran war is not the sole reason for the pipe makers' West Asia focus.
“The opportunity appears structural, rather than purely geopolitical. The Middle East is investing heavily in oil and gas, water and energy infrastructure, while global markets are focusing on energy security and diversified supply routes,” said Vinit Bolinjkar, head of research at Ventura Securities.
Who gains most
Among these companies, Welspun stands out as it is seen supported by its strong order book, healthy execution pipeline and sustained profitability outlook following the better-than-expected Q1 performance, said Amarjeet Maurya, deputy vice-president fundamental research at Kotak Securities. The company posted a 2.9x yea-on-year growth in profit after tax to ₹1,046 crore for the quarter, while its revenue from operations rose 19% to ₹4,081 crore.
The outlook is supported by strong demand across the US, Saudi Arabia and India, driven by the demand for liquefied natural gas and energy infrastructure, Aramco-led oil & gas investments, the reconstruction in West Asia, and India’s gas, water and infrastructure projects, Maurya said.
Welspun appears best positioned due to its global scale, diversified manufacturing footprint and strong order book, and the company has an established presence in the key markets and has highlighted its multi-geography advantage as a key strength, Bolinjkar of Ventura said.
Ashutosh Tiwari, managing director and chief investment officer of Equirus Asset Management, said since the war started, Saudi Arabia has emerged as one of the most resilient countries in the region as it has an east-west pipeline that helped it bypass the conflict-riddled Strait of Hormuz partially and supply through the Red Sea. “Our view is that a number of pipelines will be built in the region over next five years to diversify away the risk of transit through Strait of Hormuz,” he said.
Listing the upcoming infrastructure, he said: “The UAE is already building an east-west pipeline to double export capacity to the port of Fujairah by 2027. India has also announced a pipeline of almost 1,200km from UAE Fujirah port to Gujarat. Saudi Aramco is actively issuing optimization and bottleneck-removal orders for its 746-mile east-west petroline... The Kingdom is planning a capacity expansion to accommodate additional crude flows from Kuwait and Bahrain. Oman and Qatar also have similar plans to expand pipeline infra.”
Even amid this optimism for the pipe-makers, key risks lurk in the form of geopolitical uncertainties, project delays, and lower energy infrastructure spending, said Bolinjkar.
Moreover, the competition is also increasing as more global players set out to tap the opportunity to establish manufacturing capacity in Saudi Arabia, he added.