Vipul Mathur, MD & CEO, Welspun Corp, said the company’s order book has extended visibility up to 2029-30. The company recently secured a large high-frequency induction welded (HFIW) pipe order in the US worth around ₹4,000 crore, taking its overall order book to nearly ₹45,000 crore.
Mathur said the new HFIW mill, which can manufacture pipes of up to 24-inch diameter, was a strategic investment aimed at addressing changing requirements in the US market. The latest order includes both 20-inch and 24-inch pipes and will be used for a refined product pipeline.
He added, “It is an order that is going to carry a refined product from Texas to towards Arizona and towards the California side of it, so it’s a refined product pipeline, for which these pipes will be used.
The stock was trading at ₹2,775.70 at 10:21 am on the NSE and has gained more than 228% over the past year.
The company currently operates at around 700,000-800,000 tonnes of effective capacity in the US and is working to increase this to around 1 million tonnes through debottlenecking and capacity optimisation.
“That’s the aim. That’s the aim.” Mathur said when asked about the possibility of the company’s EBITDA increasing from around ₹2,800 crore to ₹5,000 crore by 2029.
Beyond the US, Welspun Corp sees significant opportunities in Saudi Arabia. Its joint venture, EPIC, has secured around 70-75% of a recently awarded order linked to the country’s pipeline infrastructure. Mathur said discussions around additional projects are underway as Saudi Arabia works to strengthen its crude evacuation network.
He added, “There are multiple orders behind it, which are being discussed at this point in time being discussed. What we have been discussing in the market of Saudi Arabia, from our drawing board, is now coming down to on the execution side of it.”
The company is also setting up two facilities in Saudi Arabia, one for longitudinal welded pipes and another for ductile iron pipes. Installation is largely complete, and the projects are currently in the commissioning and approval stages. The company expects the facilities to be up and running by the end of the current quarter.
Another emerging opportunity is the data centre segment in the US. Mathur said pipeline requirements linked to data centres are already appearing in the company’s order portfolio, with more projects expected to come up over the next two to three years.
“This data centre opportunity we all know is a huge opportunity; it is sitting there.” He added that the opportunity is now moving from discussions to actual project execution, with requirements including new pipelines, rerouting and reconnections.
Welspun Corp’s current market capitalisation is ₹73,642.43 crore.
For the entire discussion, watch the accompanying video
