HomeMarket NewsEarnings NewsWelspun Corp expands pipe manufacturing, bets on new product and US market
Welspun Corp expands pipe manufacturing, bets on new product and US market
Welspun Corp continues to focus on growth, new product launches, and capturing more market share in both domestic and international pipe markets.
Welspun Corp is making strong moves in the pipe manufacturing sector, with major expansion plans both in India and the United States. The company, which makes pipes for oil and gas, water infrastructure, and hydrogen transport, is introducing a new product and increasing production capacity.
Managing Director and CEO Vipul Mathur said Welspun is confident about its new Sintex OPVC pipe. “Sintex OPVC is going to be a game changer. We are very bullish on that,” he said. Production will begin in Bhopal with two lines and later expand to Raipur and southern India. The company plans to roll out six production lines over the next 9 to 15 months.
“We see a huge traction coming in for that,” Mathur said, adding that while financial details like earnings before interest, taxes, depreciation, and amortisation (EBITDA) will become clearer in the next few quarters, the company is sure about the product’s acceptance in the market.
Welspun also holds a strong position in the US pipe market. The company currently has an order book of ₹19,500 crore, with no impact from US import tariffs. “All that we are doing, we are producing there in America, we are buying the domestic steel, producing locally and supplying locally,” Mathur said. He added that the company is insulated from tariffs and expects long-term benefits from protectionist policies.
Also Read | Welspun Corp wins additional orders worth ₹1,950 crore for pipes facility since February 5
Welspun is investing ₹1,000 crore in capacity expansion, especially for High-frequency Induction Welding (HFIW) and Longitudinal Submerged Arc Welded (LSAW) pipe segments, which are in high demand for projects like hydrogen transport and liquified natural gas (LNG) terminals. These segments require heavy-duty pipes, including 24-inch lines that the company could not produce earlier. The new investment will help meet those needs.
In the US, Welspun sees opportunities as more pipelines are built for oil, gas, and carbon capture. Local manufacturing will benefit from restrictions on imports, which previously came from Europe and Southeast Asia. “There will be a space which will become available if someone is a local player,” said Mathur. "Today, as Welspun, we are the largest line pipe manufacturer. I have a 30% market share.”
Also Read | Midcap Microscope: Welspun Corp to continue outperformance or is the street getting ahead of itself?
Welspun’s India business also remains strong, with oil and gas and water segments both contributing. The company’s high-margin LSAW plants are fully booked for over a year. Based on current operations, Welspun expects to deliver an EBITDA of ₹2,200 crore.
Crude oil pricing remains a factor, especially if prices fall below $45 per barrel, but Mathur noted that energy companies plan over longer horizons of five to seven years, so short-term price dips have limited impact.
Despite large capital spending, Welspun remains financially sound. The company reported net cash of ₹1,000 crore this year after spending ₹900 crore in capex. “We are striving to be a net cash company, even in the two consecutive years where we are going to do the maximum capex,” Mathur said.
Welspun Corp reported a 12% year-on-year (YoY) decline in revenue from operations for Q4FY25, coming in at ₹3,926 crore compared to ₹4,461 crore in the same period last year.
The company also announced a new greenfield LSAW pipe manufacturing facility in the United States, with an investment of $125 million.
The company, which has a current market capitalisation of ₹23,984.78 crore, has seen its shares gain more than 65% over the last year.
For the full interview, watch the accompanying video
Catch all the latest updates from the stock market here
Managing Director and CEO Vipul Mathur said Welspun is confident about its new Sintex OPVC pipe. “Sintex OPVC is going to be a game changer. We are very bullish on that,” he said. Production will begin in Bhopal with two lines and later expand to Raipur and southern India. The company plans to roll out six production lines over the next 9 to 15 months.
“We see a huge traction coming in for that,” Mathur said, adding that while financial details like earnings before interest, taxes, depreciation, and amortisation (EBITDA) will become clearer in the next few quarters, the company is sure about the product’s acceptance in the market.
Welspun also holds a strong position in the US pipe market. The company currently has an order book of ₹19,500 crore, with no impact from US import tariffs. “All that we are doing, we are producing there in America, we are buying the domestic steel, producing locally and supplying locally,” Mathur said. He added that the company is insulated from tariffs and expects long-term benefits from protectionist policies.
Also Read | Welspun Corp wins additional orders worth ₹1,950 crore for pipes facility since February 5
Welspun is investing ₹1,000 crore in capacity expansion, especially for High-frequency Induction Welding (HFIW) and Longitudinal Submerged Arc Welded (LSAW) pipe segments, which are in high demand for projects like hydrogen transport and liquified natural gas (LNG) terminals. These segments require heavy-duty pipes, including 24-inch lines that the company could not produce earlier. The new investment will help meet those needs.
In the US, Welspun sees opportunities as more pipelines are built for oil, gas, and carbon capture. Local manufacturing will benefit from restrictions on imports, which previously came from Europe and Southeast Asia. “There will be a space which will become available if someone is a local player,” said Mathur. "Today, as Welspun, we are the largest line pipe manufacturer. I have a 30% market share.”
From a revenue standpoint, the company expects to produce 150,000 to 200,000 tonne of pipe. Based on current market prices, pipe prices are around $2,000 per tonne. Mathur said, “It is fair to assume something around 12 to 15% of EBITDA.” He expects continued growth in the US oil and gas sector for the next five to seven years.
Also Read | Midcap Microscope: Welspun Corp to continue outperformance or is the street getting ahead of itself?
Welspun’s India business also remains strong, with oil and gas and water segments both contributing. The company’s high-margin LSAW plants are fully booked for over a year. Based on current operations, Welspun expects to deliver an EBITDA of ₹2,200 crore.
Crude oil pricing remains a factor, especially if prices fall below $45 per barrel, but Mathur noted that energy companies plan over longer horizons of five to seven years, so short-term price dips have limited impact.
Despite large capital spending, Welspun remains financially sound. The company reported net cash of ₹1,000 crore this year after spending ₹900 crore in capex. “We are striving to be a net cash company, even in the two consecutive years where we are going to do the maximum capex,” Mathur said.
Welspun Corp reported a 12% year-on-year (YoY) decline in revenue from operations for Q4FY25, coming in at ₹3,926 crore compared to ₹4,461 crore in the same period last year.
The company also announced a new greenfield LSAW pipe manufacturing facility in the United States, with an investment of $125 million.
The company, which has a current market capitalisation of ₹23,984.78 crore, has seen its shares gain more than 65% over the last year.
For the full interview, watch the accompanying video
Catch all the latest updates from the stock market here
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