Dec
National Pipe
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NEW DG YAMAHA BANSHEE EXHAUST PIPES NATIONAL 87-06 $279.99 |
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National Pipe
The Indian Pipe Industry: networking across continents
The Indian Pipe Industry is among the top three manufacturing hubs after Japan and Europe. However, the penetration level of pipelines in oil & gas transportation is low at 32% in India as compared to 59% in USA and 79% globally. The pipeline network of India for oil & gas transport stood at 13,517 kms in April 2006. Sanitation levels are also lower at 33% in India compared to 91% in Sri Lanka and 100% in France. Of 140 mn hectares of cultivable land in India, only 40% of the land is irrigated. The low penetration levels represent the huge scope for growth for the pipe industry.
The industry is highly Raw Material (RM) intensive with the RM cost accounting for more than 70% of the total cost for steel and PVC pipe companies. These companies depend heavily on imports and hence many steel companies have integrated backward to reduce dependency on imports and price volatility. Freight cost is another key cost component due to higher imports and exports. With the fall in commodity prices and Baltic Dry Index (a barometer for shipping freight rates), pipe companies will be benefited in the coming quarters. Indian companies produce a wide range of steel, cement and PVC pipes which are used in various critical and non-critical applications. Indian steel pipe manufacturing companies have won several certifications and accreditations from major oil & gas companies across the globe in the recent past. With the low-cost quality products and various certifications, Indian companies have augmented their export sales over the last three to four years.
It expects the positive trend in the Indian pipe industry to continue in the next 3-5 years on the back of high oil and gas discoveries worldwide, increased efforts by the Government of India (GoI) on infrastructure development for laying pipelines for oil & gas transport, replacement demand from US and European countries, water & sewage transport and irrigation facilities.
Demand triggers for the growth are:
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The GoI increased the annual budget allocation under the Rajiv Gandhi Drinking Water Mission from Rs.65 bn to Rs.73 bn in the Union Budget 2008-09.
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For the XIth Five Year Plan, the GoI is aiming to add 11 mn hectares of irrigational facilities, entailing an investment of Rs.1,580 bn. The GoI in its efforts to reduce crude imports has formulated the New Exploration Licensing Policy for exploration and production of oil & gas. The GoI has awarded 165 blocks till date and the number is set to increase to 245 by 2008.
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Private players like Reliance Industries Limited (RIL), Cairn etc have shown interest in setting up pipe infrastructure for oil & gas transport. National gas grid will also be set up requiring an investment of Rs.210 bn.
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City gas pipe is currently available in 10 cities and the coverage is expected to grow to 100 cities in the next five years, entailing an investment of Rs.250-300 bn.
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In addition to the above, the replacement demand from USA and European countries, having a vast pipeline infrastructure, will be huge. The growth will mainly be driven by steel pipes especially SAW pipes. The order-book position of many pipe companies are almost twice their FY08 sales. However, the risk to the industry growth could be the slowdown in the US economy, the slowdown in oil & gas capex and reduction/postponement of GoI’s spending on infrastructure development.
For more information, please visit :
http://www.aarkstore.com/reports/Indian-Pipe-Industry-17053.html
Or email us at press@aarkstore.com or call +919272852585
About the Author:
Aarkstore Enterprise is a leading provider of business and financial information and solutions worldwide. We specialize in providing online market business information on market research reports, books, magazines, conference at competitive prices, and strive to provide excellent and innovative service to our customers. Our customers include more than 700 leading financial institutions, professional service firms, consulting, law and accounting firms and other corporations throughout the world.
Article Source: ArticlesBase.com – New Report “Indian Pipe Industry” available through Aarkstore Enterprise
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NEW DG YAMAHA BANSHEE EXHAUST PIPES NATIONAL 87-06 $279.99 |
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HO National Pipe Co. Loading & Unloading Car Life-Like $5.99 |
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