STEEL

TUBES AND
PIPES
INDUSTRY
INDUSTRY SIZE

Steel pipes and tubes industry is one of the important segments of the Indian Steel sector, it
contributes around 8 % of the India’s steel consumption. The steel pipes and tubes industry are
classified into two segments – Electric Resistant Welded (ERW) and Submerged Arc Welded
and Seamless (S&S). The Rs. 50,000 crore steel pipes and tubes industry are split equally
between the ERW and S&S segments in value terms. In volume terms, the domestic market is
split 70:30 between the two segments.

By volume, the India Steel Pipes and Steel Tubes Market size was estimated at 6.98 million tons
in 2023. During the forecast period between 2024 and 2030, the India Steel Pipes and Steel
Tubes Market size is expected to reach the volume of 7.66 million tons by 2030.
US MARKET SIZE USD 94 MILLION 2022 TO EST 122.65 BILLION USD
Key Growth Driver For this
Industry
• GOI’s target to increase natural gas pipeline coverage by ~54% to
34.5k km by 2024-25 and to connect all the states with the trunk
natural gas pipeline by 2027.
• The growth prospects for the SAW pipes industry in Saudi Arabia
remains healthy given increasing investments in oil & gas and sea
water desalination projects.
• GOI has already committed more than INR700bn in their union
budget of 2023 towards JJM. The central expenditure till date
towards JJM remains robust with a significant opportunity going
forward. DI pipe is likely to account 1/4 of the pipe market share in
India.
• CAGR 6.5%(Global)
SWOT ANALYSIS
Strengths
• Strong Growing Domestic and International Market.
• Essential for energy transportation.
• Established customer base.

Weakness
• Vulnerability to price fluctuations.
• Capital-intensive nature.
• Environmental considerations

Oppurtunity
• Infrastructure development.
• Expansion of renewable energy

Threats
• Environmental concerns and opposition:
• Increasing competition
• Technological disruptions
PORTER FIVE FORCE
ANALYSIS
Low Threat of Substitutes:
• D.I. Pipes operate at over-utilization levels with
major applications in water and sewage segments.
• PVC Pipes have saturated their market, leaving
limited opportunities for steel pipes, indicating low
threat of substitution.

High Entry Barriers:.

• Factors such as high capital requirements, long
payback periods, and expertise needed to start a
plant discourage new entrants.
• Certification requirements and economies of scale
further deter new plants from entering the market
easily.
 Market-Determined Prices:
• Raw material prices are based on market determinants.
• Tender systems provide more bargaining power to buyers
compared to custom orders,.
• Limited Competition:
Porter Five Force Few players in the market and low-capacity utilizations
result in limited competition.
Analysis Intense competition would lead to even lower profitability.
Market Dynamics Summary:
Market characterized by low threat of substitutes, high
entry barriers, market-determined prices, limited
competition, and varying bargaining power for buyers
and suppliers
 COMPANY PROFILE
• Welspun Corp Ltd (WCL) is a manufacturer
and supplier of large-diameter pipes. Its
product portfolio includes HSAW pipes, LSAW
pipes, ERW pipes and Ductile Iron Pipes. The
company’s service portfolio comprises Coating
systems and Ancillary services.
• MARKET CAP-13,546 CR
• Welspun Corp (WLCO), a dominant player in
the line pipes segment across India (Top 3) /
US ( ~23% mkt. share) / Saudi Arabia (largest
player)
 Buisness lines
Pipe Building
Solutions
Large Diameter pipe and 01 03 materials
coating Current: Water Storage
Tanks, Interiors, Liquid
Storage Solutions,
Electrical Boxes

TMT Rebars
Pipe
Fittings and
solutions 02 04
DI Pipes Adhesives
SS Pipes
Plastic Pipes
 ABG Shipyard Acquisition
• The acquisition cost of INR 659 cr and the
strategic prospect of realizing value through the
scrap sale of half-constructed ships illustrate astute
financial management.
• The 165 acres of leased land presents a versatile
canvas for multifaceted utilization, which the
company is diligently assessing.
Sintex Acquistion
• Leveraging Iconic National Brand Sintex.
• Optimization of distribution channel
• Rationalization of logistics cost
• Strengthening position in B2C segment
• SAPL signed the Framework Agreement with Rollepaal
Pipe
• Extrusion Technology B.V for supply of its high quality
PVCO .
Competitor Analysis
 KEY MANAGEMENT PERSONNEL

Mr Balkrishan Mr Rajesh R. Mr Vipul Mathur

Goenka Mandawewala (MD&CEO)
(CHAIRMAN) (Director)
• Well-known industry
figure with global
• 27 years of experience, • Over 30 years of experience expertise, contributing
strong business acumen, enabling global expansion, significantly to the
and recognized as a with a focus on innovation growth of Welspun since
foremost corporate leader and product development. 2001.
in India • Rich experience in textiles • Providing extensive
• President of ASSOCHAM and SAW pipes, driving leadership in roles in
(2019), recipient of Asian innovation through research India and Middle East.
Business Leadership and product development.
(ABLF) Award, 2019.