Tata Metaliks plans to increase DI pipe production capacity from 200,000mt to 400,000mt in the next two years, according to their conference call. In the first phase, the company expects to add 100,000-120,000mt, to be commissioned by FY2022 end. Expansion of another 100,000mt will conclude by the second half of FY2023 ending March 2023.
The company aims to reduce the production and sales of pig iron in the next couple of years. Sales of pig iron at present, account for 50pc of the total. These will be reduced to one-third after the expansion of the DI segment.
Tata Metaliks aims to increase market share in the DI pipe segment from 12pc to 15pc in the next two years. The company expects strong growth and upcoming projects in states like Odisha, UP, MP, Andhra Pradesh, Jharkhand, Maharashtra, Jharkhand, and West Bengal. Demand is also growing in states like Gujarat, Rajasthan, Kerala, and Tamil Nadu, but at a slower pace.
The Indian government’s focus on water infrastructure development with the Jal Sakthi scheme is expected to drive demand for DI pipes.
The investment is expected to be around Rs1,000bn in rural and urban areas.