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| Saw Pipes (SPL), part of the O P Jindal group and a market leader in submerged arc welded (SAW) pipes, is investing Rs 250 crore in a greenfield venture in Gujarat.
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| The company has signed a memorandum of understanding with the Government of Gujarat and acquired 250 acres of land for the purpose.
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| The project involves production of 100,000 tonne per annum of medium diameter (10 inches to 24 inches) ductile iron (DI) pipes at Mundra, Gujarat, Niraj Kumar, chief financial officer of the company, said.
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| These pipes are used in intra-city water and waste disposal pipelines. At present, the domestic demand is about 300,000 tonne per annum.
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| Till now, SPL has been manufacturing only small (less than 4 inches) and large diameter (24 inches to 84 inches) pipes with a total capacity of 258,000 tonne per annum. This year, the company recorded an about 20 per cent growth in total sales, Kumar said.
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| With the manufacture of medium diameter low pressure application pipes, the company would emerge as a total pipe solution company, he said. At present, the company operates from four plants located at Mundra, Kosi- Kanal, Nashik and New Delhi.
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| At present, Electrosteel Castings caters to entire market demand in the medium diameter pipe segment.
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| As per the nine months results declared by the company (October 1, 2002 to 30 June, 2003), gross sales rose 11 per cent to Rs 424.10 crore.
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| During 2001-02, the company recorded gross sales of Rs 605.85 crore on an annualised basis (a year-on year growth of 51 per cent). Exports contributed 81 per cent to sales. |
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