Presentation- Indian Pipe Industry

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Indian Pipe Industry-An Outlook Special Insight Insight-- ¶PVC Pipes· Pipes·

PVC Pipes Steel Pipes

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Overview on Indian Pipe Industry

The Indi Indian an

Pipe Pipe Indu Indust stry ry is amon among g the the top top thre three e manu manufa fact ctur urin ing g hu hubs bs afte afterr Ja Japa pan n an and d Euro Europe pe..

The

penetra tratio tion leve levell of pip pipelines in oil & gas tran transspor portati ation is low low at 32% in India dia as compa parred to 59% 59% in USA an and d 79% 79% glob global ally ly.. Howe Howeve verr lowe lowerr pe pene netr trat atio ion n leve levels ls repr repres esen entt the the hu huge ge sco scope for for grow growth th for for the the pipe pipe indu indust stry ry.. The

industry is highly Raw Material (RM) intensive with the RM cost accounting for more than 70% of the the tota totall cost ost for for ste steel an and d PVC pipe pipe compa ompani nies es..

These

compa pan nies de dep pend heavil vily on imports an and d hence man any y comp compa anies have integrate ated backwa backward rd to redu reduce ce de depe pend nden ency cy on impo import rtss an and d pric price e volat volatililit ity. y. Freight cost is anothe ther key cost compon ponent due to higher impo mports and exports. ts. With the the fall fall in commodity prices and Baltic Dry Index 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 various critic critical al and non-c non-crit ritica icall applicat application ions. s. With the low cost quality products and various certifications, Indian companies have augm au gmen ente ted d thei theirr ex expo port rt sale saless over over the the last last thre three e to four four yea ears rs.. A positive tive tre trend is expected ted in the the Ind Indian pipe industry try to contin tinue in the the next 3-5 years on the the bac ba ck of high high oil an and d gas gas disc disco ove veri ries es wor worldwi ldwide de,, inc increas reased ed effo effort rtss by the the Gove Govern rnme ment nt of Indi India a (GoI) oI) on infra nfrast stru ruc ctur ture de deve velo lopm pme ent for for lay laying pipe pipelilin nes for for oil & gas gas tran transp spo ort, rt, rep epla lac ceme ement dema de mand nd from from US an and d Euro Europe pean an coun countr trie ies, s, wate waterr & sewa sewage ge tran transp spor ortt an and d irri irriga gati tion on faci facililiti ties es..



Relating Extending Actualizing and Profiting Key

Findings

*

GoI: Government of India

The

GoI* increased the annual budget allocation under the Rajiv Gandhi Drinking Water Miss Missiion from from Rs.6 s.65 bn to Rs. Rs.73 bn in the the Union nion Budg Budge et 2008 2008-0 -09 9. For the XIth Five Year Plan lan, the GoI is aiming to add 11 mn hectares of irrigational facilit lities, entai en tailin ling g an inves investme tment nt of Rs.1 Rs.1,5 ,580 80 bn bn.. The

GoI in its efforts to reduce crude impo mports has formula mulate ted d the New Explor loratio tion Licensing Polic licy for explor loratio tion and produ duc ction of oil & gas. The GoI has awarded 165 blocks till date and the the numbe mber is set to increase to 245 by 2008.

Priv Privat ate e play player erss like like Re Relilian ance ce Indu Indust stri ries es Limi Limite ted d (RIL) RIL),, Ca Cair irn n etc etc ha have ve show shown n inte intere rest st in sett settin ing g up pipe infrastructure for oil & gas transport. National gas grid will also be set up requiring an inve investm stmen entt of Rs.2 Rs.210 10 bn bn.. City gas pipe is curre rrently avai vailab ablle in 10 citie ties an and d the the cove verrage age is expe pec cted ted to gro grow to 100 citi cities es in the the ne next xt five five year years, s, en enta taililin ing g an inve invest stme ment nt of Rs. Rs.250250-30 300 0 bn bn.. In addition to the above, the replacement demand from USA and European countries, havi ha ving ng a vast vast pipe pipelin line e infr infras astr truc uctu ture re,, will will be hu huge ge..



Relating Extending Actualizing and Profiting Classification

of Pipes Types

of Pipes

Steel Pipes

PVC Pipes

Seamless & ERW

uPVC

Galvanized Pipes

RPVC

Carbon Steel Pipes

CPVC

SAW

PPR

Drill Pipes

HDPE

Corrugated Steel Pipes

SWR SWR Hose Composite Casing pipes




Plastic Pipe Overview Pipes uPVC-ASTM*

RPVC

Full Form

Features

Unplasticized Unplasticized Poly Vinyl Vinyl Chloride Long Life, Life, Light Light Weight, Weight, Non Corrosive, Corrosive, Leak Proof Joints, Cost Effective, Termite proof and UV resistant, Odourless and hygienic Rigi d Pol y V in inyl Ch Chl or oride Strong & durabl e, e, Re si sistant to to ru rust, UV UV radiation & most of the chemical actions

Applicatiouns Agriculture/Irrigation,Building Construction,Portable Construction,Portable Water Supply Portable water supply, Disposal of chemical effluent & waste Acid & slurries transportation, Salt water handling Hot and cold water distribution, chemical

CPVC

Chlorina Chlorinated ted Poly Poly Vinyl Vinyl Chloride Chloride

Environm Environment entally ally frie friendly, ndly,Pro Provide vide long long service life,Easy to install and handle,Corrosion resistant. Cost effective.

PPR

Pol yp ypropyl ene Pipe

Excel l ent chem ical resistance, re resistant to to sulfur-bearing compounds, lightweight, good tensile strength &saltwater resistance

Hot and cold water supplying pipes, Sanitary lines,Water purifying plants,Agriculture , Radiator heating pipes, Under floor heating pipes

HDPE

High High Dens Densit ity y Polye Polyeth thyl ylen ene. e.

Suit Suitab able le for for Proc Proces esss Wat Water er,, corr corros osio ion n and and abrasion resistant

Storm Sewers,Highway Drainage Culverts,Recharge Systems

*ASTM (American Society for Testing of Materials) standards.



Relating Extending Actualizing and Profiting Pipes

Soil, Soil, Waste aste & Rai Rain n Water ater

SWR

Features

Cost Cost Effe Effect ctive ive,, Ligh Lightt Weigh eight, t, Minim Minimu um transportation & installation costs are Strong and Durable Better Flow Characteristic Resistant to Chemi cal reaction, Bacterial growth, Corrosion, Rusting

Hose

Composite

Casing asing

Full Form

pipes pipes

Poly Ethylene Composite Pipes Excellent Corrosion Resistance Light Weight and Strong Permeation Barrier Ease of Handling and Installing Clean and Safe Cost Efficiency High Chemical Resistance Lower Conductivity Strength Remains Same After Bending Easy Detection Low Expansion and Contraction Good Flexibility Strong and Durable Light weight Low Frictional Loss Resistant to Chemi cal reaction, Bacterial growth, Corrosion, Rusting Better Flow Characteristic Economical


Applications Drainage system, chemical plants, power plants drains, Sanitation purposes Suction Pipes: Widely used with electrical mono block and oil or diesel engines. Garden Pipes: For water and oil distribution purpose in industrial, domestic and irrigation purpose Extremely suitable for civil and industrial cold & hot water systems

Tube

well and pump casings Domestic wells Industrial Industrial wells & mines Agricultural: Irrigation wells



Plastic Industry- A review Indi India a rank rankss 8th 8th in the the worl world d in tota totall plast plastic ic cons consum umpt ptio ion. n. Its gaining notable importance in different spheres of activity and the per capita cons consum umpt ptio ion n is incr increa easi sing ng at a fast fast pa pace ce.. Cont Contin inuo uous us ad advan vance ceme ment ntss in poly polyme merr techn technolo ology gy,, proc proces essi sing ng machi machine neri ries es,, expe expert rtis ise, e, an and d cost ost effec ffecti tive ve manu manufa fac cturi turing ng is fast fast rep epla lac cing the the typi typic cal mate materrial ials in diff diffe erent rent segme egment ntss with plastics plastics.. Shar Share e of Indi India' a'ss plast plastic ic prod produc ucts ts indu indust stry ry is ab abou outt 0.5% 0.5% of Indi India' a'ss GDP. GDP. The ex expo port rt

of plas plasti tic c prod produc ucts ts also also yields ields ab abou outt 1% of the the coun countr try' y'ss ex expo port rts. s.

The

sector tor has a lar large presence of small scale companies in the the industry, whi which ac acc count for more than 50% turnover of the industry and provides employment to an estimate of abou ab outt 0.4 0.4 milli million on pe peop ople le in the the coun countr try y.

App ppro roxi xima mate tely ly Rs 100 100 bill billio ion n are are inve invest sted ed in the the form form of fixe fixed d asse assets ts in the the plas plasti tic c proc proces essi sing ng industry.




Top 10 trading partners for Indian p lastic industry USA Hong Kong

UAE

China

Italy

Trading Partners

Saudi Arabia

UK

Singapore

Belgium Germany



Relating Extending Actualizing and Profiting Key

Players

Key

Jain Irrigations System

Reliance

Finol ex

Players

Supreme

Jindal saw


DCW

Chemplast

Prince



*Statistics of Plastics Industries in India Current

Status

Major Ra Raw Ma Material Pr Producers

15 No Nos

Processing Units

25,000 Nos.

(Processing In I ndustry) Turnover (P

Rs.85,000 Crores

Capital As Asset (Polymer I ndustry)

Rs.55,000 Crores

Raw Ma Material Pr Produced ap approx

5.3 M MM MT**

Raw Ma Material Co Consumed ap approx

5.1 MM M MT

Employed Di Direct/I ndirect

3.3 Mi Million

Export Val ue approx

US $ 1.90 Bil lion

Revenue to t o Government ap a pprox.

Rs.7300 Crores

By 2011-2012 Demand Potential

12.5 MMT

Additional Empl oyment

4.0 Million

I nvestment Potential

Rs.84,000 Crores

*Source :http://cipet.gov.in/plastics_statics.html


**MMT: Million Metric Tonnes



VISION VISIO N 2015 2015 ² Indi Indian an Plastics Industry

*Role Plastics can play in Indian 2005 Economy Cons Consum umpt ptio ion n of Poly olymer mers @ 15% 15% 4.7 4.7 Millio Million n Tonnes CAGR Turnover

of pl astics Industries Rs. 35 3 5,000 crores

2015

18.9 Mi Million tonnes

Rs.1,33,245 crores

Empl oyment I n Plastic I ndustry

2.5 Mi Million

9.5 Mi Mill ion

Export of Plastic Products @ 30% CAGR

US$ 1900 Millions

US $ 10215 Mil lions

Contribution of Polymers and Plastic Products to the Exchequer

Rs. 6200 Crores

Rs. 15990 Crores

*Source:http://www.capitalmarket.com




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We assi assist st bu busi sine ness sses es to be bette tter r define thei theirr scop scope e of work work,, formulate and execute successful busi bu sine ness ss stra strateg tegie iess by worki working ng close closely ly with with comp compan anie iess to he help lp them them iden identi tify fy an and d un unde ders rstan tand d design gn & mana manage ge solutio the the risk riskss an and d oppo opportu rtuni niti ties es,, to plan ah ahea ead d an and d to desi solutions ns which which inc increa rease se

sale saless an and d prod produc ucti tivi vity ty in turn turn en enab abliling ng the the comp compan any y to incr increa ease se an and d sust sustai ain n its its prof profit it..

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Sectorial Synopsis

Supr Suprem eme e Indu Indust stri ries es (SIL (SIL), ), one one of Indi India· a·ss large argest st plastic astic prod product uctss makers makers,, looks a good bet bet for for long-term term investo investors. rs. Government's infra push lifts PVC prices PVC has risen to Rs 36,500 per tonne from Rs 28,000 at the end of the last year. The price rise can be attributed to the demand inelasticity for PVC in the light of its widespread usage in water supply pipes across India. Chemplast

China

Sanmar·s Rs 600 cr PV C plant goes on stream

renews PVC antidumping measures



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Presentation- Indian Pipe Industry

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