Steel pipe maker PSL today said it will commission its second pipe mill of 75,000 tonne a year capacity at Sharjah in May as the company is anticipating strong demand from West Asia in the coming months.
This would take its total pipe production capacity to 1,50,000 tonne per year in West Asia through its subsidiary PSL FZE, Hamriyah.
"We are doubling the capacity by 75,000 tonne at Sharjah and it will be commissioned in May," PSL Managing Director Ashok Punj told PTI.
He added his company has bid for water transmission pipeline projects about $200 million in the region and "definitely some would mature for us due to increasing expenditure on social infrastructure."
Punj further said due to political turmoil witnessed by West Asia in recent times, several governments have accelerated the decision making process and investments on social infrastructure like providing drinking water.
"Heightened sensitivity in social infrastructure would see more water pipelines in the region, as they are desert countries and that will certainly benefit our business," he said, adding that "decisions, which used to take over 6 months, are getting accelerated now."
On Tuesday, PSL had announced it has bagged an order worth $80 million for the supply of bare line pipes to the Saline Water Conversion Corporation (SWCC) of Saudi Arabia.
Besides its business in West Asia, the company is also bullish on Indian markets, where large number of water and oil and gas pipelines' projects are coming up.
"We are bullish on both the segments (water and oil and gas). Several projects of GAIL and Gujarat State Petronet (GSPL) are coming up, while demand for water transmission pipe are expected to go up post assembly elections in states like Tamil Nadu," Punj said.
PSL is eyeing to increase its order book to over Rs 3,000 crore from current levels of about Rs 1,700 crore in about 3-4 months, he said, adding his company will also bid to supply pipes for Kochhi-Bangalore pipeline project of GAIL which is due next week.
Sharess of the company were trading today at Rs 74.20 on the Bombay Stock Exchange at 1430 hours, up 1.44% from the previous close.