It is into a very interesting & promising space. It has been a 7~8 bagger already for a person known to me during last 2 years & he's still holding onto it. Welspun's competitors are PSL, Man Inds, Ratnamani, Jindal Saw, Mah Seamless.

Rinkuji

Six key steel pipe manufacturers saw an aggregate 17.5 per cent growth in sales and 37.7 per cent rise in profit in the March 2007 quarter. Profit grew at a faster pace than sales following a decline in input costs. The cost of raw materials rose by 9.6 per cent against 17.5 per cent growth in sales.

Welspun Gujarat’s net profit grew 112 per cent on a modest rise in sales, while Maharashtra Seamless’ top line and bottom line rose over 25 per cent each.

Trigger: The Chinese government has cancelled the export rebates on welded steel pipes and reduced the rebates on seamless steel pipes from the current 13 per cent to 5 per cent, effective from July 1.

With a host of global accreditation, industry leaders such as Jindal Saw, Welspun Gujarat Stahl Rohren, PSL, Maharashtra Seamless and Man Industries are well-equipped to cash in on the opportunity unfolding in the space.

Outlook: According to Alchemy Research, demand for steel pipes is emerging from West Asian markets such as Iran, Iraq, UAE and Qatar and markets in Africa such as Algeria, Libya and Nigeria.

The reason: a boom in the oil and gas transportation infrastructure in these regions.

Sourced from BS article here

Welspun-Gujarat to build manufacturing unit in US Add to Clippings

MUMBAI: Metal pipe manufacturer Welspun-Gujarat Stahl Rohren is planning to build a $100 million manufacturing facility at Arkansas in US and expects to start production by Spring of 2008.

The Arkansas facility, once completed, would be capable of 300,000 net tonnes of tubular steel pipes annually for use in the oil and gas industry and Welspun Gujarat would hire about 300 workers, the company said in a communique to the Bombay Stock Exchange.

The facility would be adjacent to the Little Rock Port authority.

"We are happy to be here at Little Rock today which has the advantage of a talented workforce, the right transportation opportunities and above all, the right geographical location. We look forward to a long and prosperous future as partners in Little Rock," Welspun-Gujarat Vice Chairman and Managing Director B K Goenka said.

With majority of its production exported to the United States, Welspun has a very strong presence in the US. It also supplies pipe foils to one of the world's deepest pipeline for the 'Independence Trail' project in the Gulf of Mexico.

"Welspun could have chosen many other locations for their investments, and they chose Arkansas. Our workforce, infrastructure and the natural benefits of the Arkansas River convinced Welspun to become our partners in progress," Arkansas Governor Mike Beebe said.

The company also has manufacturing facilities in Dahej and Anjar in Gujarat, India.

Source : ET