value reresearch online artilcle on pipes

-

Way back in 2000, Ramesh Mansukhani, Chairman, Man Group, had stated
that �with refining capacity on the rise, movement of oil and gas is
expected to gain momentum�. Now, in retrospect, one can see that he
was bang on target. More recently, Indresh Batra, MD, Jindal Saw, was
quoted in the press as saying that "the period between 2008 and 2012
will be the golden period for Indian pipe manufacturers." Look at the
dynamics. Oil and gas companies have certainly earned their place in
the sun. But after the discovery comes the transportation and
movement, so to speak. The anticipated growth in that sector is
naturally expected to translate into higher revenues for the line pipe
manufacturing industry.

Depleting oil reserves have led to an increase in exploration efforts
resulting in more wells. Demand for seamless pipes is directly
proportional to the increase in number of wells. With rising crude oil
prices, control on oil transportation cost is gaining more prominence.
The share of pipelines in oil transportation in India is around 33 per
cent as against 75 per cent in developed countries. Transportation
through pipelines offers the advantage of low operating costs (it is
cheaper when compared to road transport), safety, eco-friendliness and
protection against pilferage. Pipeline infrastructure in India is
likely to almost double in the next five years. Not only is India
witnessing domestic heightened activity post the New Exploration and
Licensing Policy (NELP), but USA and the Middle East will be the key
international drivers for Indian pipe players.

Seamless pipes are high-tensile steel pipes used under extreme
conditions such as those at oil fields. They are made by boring a hole
through a steel bar and then rolling it. On the other hand, submerged
arc welded (SAW) pipes are made by fusing together steel plates and
rolling them into the form of pipe.

They are mainly used in oil and natural gas transportation. The demand
for such pipes will be driven by exploration and transportation
activities.

Prominent players in this sector include Jindal SAW, Man Industries,
Maharashtra Seamless, PSL Holdings Ltd and Welspun Gujarat Stahl
Rohren. These companies have full order book positions that cater to
domestic and international demand. Now the news is that GAIL (India)
Ltd. is considering diversifying into gas pipeline construction to
increase the synergy in its core activity (gas transmission and
marketing). Pipeline infrastructure is emerging as a lucrative segment
of the overall infrastructure story.

Popular posts from this blog

IOB capitalises on hike in stake by LIC

-
Indian Overseas Bank rose 1.53% to Rs 46.45 at 10:31 IST on BSE, after the biggest domestic instutional investors Life Insurance Corporation of India hiked its stake in the state-run bank. The bank made this announcement after trading hours on Wednesday, 25 March 2009. Meanwhile, the BSE Sensex was up 126.19 points, or 1.31%, to 9,794.09. On BSE, 31,003 shares were traded in the counter. The stock had an average daily volume of 1.93 lakh shares in the past one quarter. The stock hit a high of Rs 47 and a low of Rs 45.95 so far during the day. The stock hit a 52-week high of Rs 156.80 on 2 May 2008 and a 52-week low of Rs 37.55 on 9 March 2009. The mid-cap bank stock had underperformed the market over the past one month till 25 March 2009, falling 3.17% as compared to the Sensex's 8.60% rise. It had also underperformed the market in the past one quarter, declining 33.94% as compared to the Sensex's 1.04% rise. The bank's current equ The current price of ...
Read more

Lok Housing & Constructions builds on fund raising plans

-
Lok Housing & Constructions jumped 6.99% to Rs 107.90 at 11:20 IST on BSE ahead of a board meeting to consider fund raising options from both foreign and local market, including an institutional placement. Meanwhile, the BSE Sensex was down 50.50 points, or 0.30%, at 15203.73. On BSE, 1.86 lakh shares were traded in the counter. The scrip had an average daily volume of 4.74 lakh shares in the past one quarter. The stock hit a high of Rs 115 and a low of Rs 102 so far during the day. The stock had a 52-week high of Rs 390.50 on 1 January 2008 and a 52-week low of Rs 96.25 on 12 June 2008. The scrip had underperformed the market over the past one month till 12 June 2008, falling 26.55% compared to the Sensex's 10.18% decline. It had also underperformed the market in the past one quarter, falling 31.39% compared to Sensex's 3.24% fall. The small-cap housing projects developer has an equity capital of Rs 42.88 crore. Face value per share is Rs 10. The current...
Read more

Griffin Chemicals surges on re-listing

-
Griffin Chemicals was trading at Rs 29, up 2220% on re-listing after six years on Bombay Stock Exchange (BSE). The counter saw miniscule volume of 4769 shares. The stock opened at Rs 23, up 1740% against its last traded price of Rs 1.25 on 8 August 2002. The Griffin Chemicals stock was highly volatile today. It opened at Rs 23 and then rallied ahead to Rs 50 but soon eased to a low Rs 22. The surge in Griffin shares reminds of unprecedented rise in stock prices of KGN Industries on its re-listing day. KGN Industries, run by Ahmedabad-based Memon family, had re-listed at Rs 100 per share after nearly seven years in May 2008 this year. The stock had risen to a high of Rs 55,000.
Read more