Batch B- Team 4

Jindal Saw Ltd.

Total Pipe solutions
1.Nived Devadas
2.Padmaselvi S K
3.Prakash S
4.Rahul Gopalakrishnan
5. Ramya Priya G
6. Rupasri B
7. Sai Vignesh S
8. Saran Chandra Sudheesh
9. Shivam S
About

 Manufacturer of large SAW Pipes – The Submerged Arc Welded (SAW) pipes are
mainly used in transportation of Oil, gas, slurry and water.

 Incorporated in October 31st 1984

 Found by Mr. Om Prakash Jindal

 Current Chairman: Mr. Prithvi Raj Jindal

 Jindal Saw Ltd is a part of JSW Ltd. (Jindal South West)

Product and Product differentiation

 Jindal Saw Ltd manufactures SAW Pipes (Submerged Arc Welded Pipes) and spiral
pipes for the energy transportation sector.

 Carbon, alloy and seamless pipes and tubes for Industrial applications

 Ductile Iron pipes (DI) and fittings for water and waste water transportation.

 Sellers in the market might sell homogeneous or differentiated products. In case of

Jindal Saw Ltd it produces differentiated products as they provide value-added services
like Anti-corrosion coatings, connector casings etc.,
Market structure

 Jindal Saw Ltd. has the nature of oligopoly market.

 Few of the major competitors are Maharashtra Seamless Ltd., ISMT (Indian Seamless
Metal Tubes Ltd.), Welspun Steel ltd. Interdependence means that actions of one firm
affects the actions of other firms.

 Large capital requirements and requirement of control over supply of raw materials are
the barriers and only those firms which are able to cross these barriers enter the market.
Demand Structure

 International Demand- Projected growth in steel and pipes estimated at 5.8% in 2021 compared to a
contraction of 0.2% in 2020.

 There is a demand revival for Jindal Saw steel and pipes, however, it will take a few years to reach pre-covid
volume of demand.

 Domestic Demand – Demand is exceeding supply. The rise in price of raw materials iron ore, steel has forced
the company to cut down its supply, hence the demand for the pipes is exceeding its current supply.

 The government of India has taken several policies and measures to reduce the prices of raw materials like
steel and iron ore (lowering import duty) in order to strengthen the domestic manufacturers. Of the total
consumption for steel, steel pipes constitute 8-10%.
Production and Cost structure
 Cost structure of Jindal Saw ltd. Includes the following:
 Total Costs comprises of fixed costs and variable costs.
 Fixed costs includes Finance cost, depreciation and employee benefits expense.
 Variable costs include Stores and spares consumed, power and fuel, repair and maintenance,
advertisement charges and other miscellaneous expenses.
 Review of operations with regard to production:
 FY 2020-’21 has registered decrease in production and sales volumes as compared to 2019-20.
 The total pipe production for 2020-’21 was 1 crore MT as compared to 1.2 crore MT in 2019-’20.
 The annual pellet production for 2020-’21 was 12.3 lakhs MT as compared to 13.8 lakhs MT in
2019-’20.
 Domestic manufacturers increased steel prices during the year as there was a mismatch in the
demand for finished steel and its production as well as the rising iron ore prices across the world.
Strategies to improve profitability

 The company has entered into a strategic alliance with global upstream equipment
maker Hunting Energy Services to bring in seamless casing and tubing technology to
the country that could partly help substitute imports worth $200 million a year.

 Jindal Saw Ltd. uses advanced latest technology that enables them to perform better, it
also enables them to reduce cost of labor.

 The exploration and production activity is creating demand for more rigs, oilfield
services and equipment, triggering big interest from foreign suppliers.
Competitor’s strategy

 Competitors like ISMT focuses on differentiating the products. Their manufacturing

capacity has increased and the cost of producing various products within the seamless
tube segment have reduced.

 Maharashtra Seamless Ltd., is exploring international markets to reduce dependence on

few geographies.

 Welspun focuses on locating their sources of raw materials, hence proximity of

production plant near ports provides an advantage in terms of freight cost and inventory
holding cost.
Competitive advantage

 Considering the increase in demand for large diameter pipes in the Gulf region, an expansion is being
planned in Abu Dhabi to increase the capacity for pipes in the size range of 1400 mm and above.

 This additional capacity is expected to be commissioned by first quarter of CY 2022. To meet the
increasing demand on the exports side, the Company is also upgrading the Samaghogha unit, with a
focus on the manufacture of pipes of the size range 80-300 mm.

 The company has increased its focus on special products such as PU-coated pipes and double
chamber pipes to retain its market edge and improve sales. Facility upgradation is also being
considered in the context of the expected increase in demand as the government implements the Jai
Jeevan Mission.
Debts

 Even though Covid affected it's normal working , Jindal Saw and it's subsidiaries saw
an expansion and has been able to increase their company's margins.

 Even during Covid , Jindal Saw has been able to ensure liquidity and has been able to
restrict their debts. Debt to equity ratio has all come down when compared to last FY
(add values)

 Because of their healthy debt ratio , In March 2021 , they issued further debentures for
further investment (rated , listed , redeemable and non-redeemable)
THANKYOU!