|
Venus Pipes & Tubes is venturing into the fittings business, aiming to provide complete PFF (piping, fittings & flanges) solutions across industries. The company's focus includes a diverse product range, material expertise, customization services, and strict quality control. This move, backed by strong relationships and a history of delivering quality products, sets the stage for expedited approvals.
Additionally, the company is expanding its capacity in the value-added welded tubes segment, introducing specialized stainless and titanium welded tubes designed for exceptional strength, precision, and corrosion resistance. This strategic diversification aims to position the company as an industry pioneer, opening new avenues for revenue growth and profitability, especially in sectors such as food processing, pharmaceuticals, nuclear, and power.
The expansion comprises two phases: the first involves a capacity expansion for value-added fittings & welded tubes, with a projected completion by March 2025, costing Rs 115 crore. The second phase, aimed at establishing value-added fittings, welded/seamless pipes/tubes, is set to be completed by December 2025, costing Rs 60 crore. Funding for the expansion will consist of 40% in warrants issued to promoters & others, and 60% in term loans from banks & internal accruals, with anticipated high teens margins and non-dilutive return ratios.
Arun Kothari, MD of Venus Pipes & Tubes, highlighted that these endeavors complement the existing pipes business and enable the provision of complete PFF solutions to customers across various industries. Further, he emphasized that the expansion of their product portfolio and the introduction of specialized stainless and titanium welded tubes will enhance their competitive edge and profitability, thus enabling diversification into sectors like food processing, pharmaceuticals, nuclear, and power. He mentioned that these strategic initiatives are expected to improve ROCE, enhance profitability, and drive sustainable growth, confirming his confidence in the positive outcomes that will solidify the company's position as an industry leader.
Venus Pipes & Tubes manufactures and exports stainless-steel pipes and tubes, offering seamless and welded products in five categories. Their market extends to over 20 countries, including Brazil, the UK, Israel, and various European Union nations.
Venus Pipes & Tubes' net profit rose 106.38% to Rs 23.28 crore on 52.18% increase in net sales to Rs 207.13 crore in Q3 December 2023 over Q3 December 2022.
|