Pipe manufacturer PSL today said it has bagged an order worth Rs 570 crore from Indian Oil Corporation (IOC) for manufacturing of pipes and provision of ancillary coating services for its Salaya-Mathura Pipeline (SMPL) project.
As per the order, PSL will have to supply 28-inch diameter coated steel pipes for IOC's 821 km oil pipeline de-bottlenecking project, the company said in a statement.
"We have built strong supply-chain capabilities over many years and therefore look forward to participating in the development of the nation's energy grid and oil and gas network," PSL Managing Director Ashok Punj said.
The production for this order is expected to commence soon and PSL's existing facilities in Jaipur and Kandla would be pressed into service to meet the supply requirements, he said.
"These orders reinstate the trust of our clients in and further strengthen our foothold in the Indian market. We are positive that our technical expertise and the proximity of our various mills to these projects will deliver high quality products and services to our customers in a prompt manner," Punj added.
The standalone order book of PSL is at around Rs 3,050 crore, while its consolidated order book is Rs 3,610 crore.
The company, which manufacturers pipe in India through 14 pipe mills at multiple and strategically coast-based locations in Kandla, Chennai, Visakhapatnam and Jaipur, along with international subsidiaries in the Middle East and USA, has an annual pipe manufacturing capacity of 1,775,000 MT, the release said.
