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As on 22-Sep-2022  14:55

Venus Pipes gains after board OKs Rs 50-cr capex proposal

This new line will increase the existing welded pipes range to maximum 20” inch (508mm) diameter and thickness up to SCH80s with a capacity by 700 mt per month.

The project will be funded through a mix of debt (term loan) & internal accruals and commercial production is expected to start by Q1 FY24.

The proposed expansion will include tube mill along with entire finishing infrastructure i.e. annealing furnace, pickling and passivation setup, high end testing etc. to support the higher dia. welded pipe process.

This capacity expansion will be in addition to an on-going expansion of 600 MT per month of welded pipes upto 48 inches.

Post completion of both these capacity expansion projects the total Welded capacity will increase by almost 3 times from current 700 MT per month to 2,000 MT per month by FY24.

Apart from this, the additional 500 MT per month (on existing capacity of 300 MT per month) for seamless pipes/tubes is on track. So the total welded (2000 mt per month) & seamless (800 mt per month) capacity post planned capex will be 2800 mt per month.

Commenting on the expansion, Arun Kothari, managing director, Venus Pipes & Tubes, said, “Post the commissioning of this project, we will be the amongst the very few manufacturers in the India & World to have tube mill capacity of manufacturing this size which is an important milestone in our growth journey.

With revival of capex cycle in India leading to robust demand for our products across end user industries, this capacity expansion will give us an edge and will help to captured more market in this segment.

With a base of approximately 58 clientele amongst the Fortune 500 companies in India, we are making ourselves a first reference and preference in stainless steel pipes and tubes manufacturer and our goal is to increase our presence further in this domain.”

Venus Pipes & Tubes is a manufacturer and exporter of stainless steel pipes and tubes. The company is manufacturing stainless steel tube products in two broad categories - seamless tubes/pipes and welded tubes/pipes under which five categories of products are manufactured namely, stainless steel high precision & heat exchanger tubes, stainless steel hydraulic & instrumentation tubes, stainless steel seamless pipes, stainless steel welded pipes and stainless steel box pipes. The company sells products in both domestic and international markets.

The company's net profit rose 33.77% to Rs 9.11 crore on a 40.14% jump in sales to Rs 113.60 crore in Q1 FY23 over Q1 FY22.

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