Welspun Gujarat bags prestigious orders of Plates worth over Rs. 500 crore

Welspun Corp Ltd. | Steel & Iron Products | Metals & Mining | BSE: 532144 | NSE: WELCORP

26 Feb 2009 Evaluate

Welspun Gujarat Stahl Rohren Ltd. (WGSRL), the 2nd largest line pipe company in the World (Source: Financial Times, UK) and the winner of Economic Times 'Emerging Company of the Year' has commissioned its state-of-art Pipe Mill at Little Rock in Arkansas, USA. This Pipe Mill has also received the much coveted API certification. With more than 250 employees, this $150 million facility spread across 740 acres has the ability to produce 300,000 tons of HSAW pipes. The facility can produce Pipes from 24 to 60 inches as outer diameter; 6 mm to 25 mm as wall thickness. It also has Coating and Double Jointing capabilities which were commissioned earlier and now provides a 'One Stop Solution' for its valued customers.

Further WGSRL has recently bagged prestigious orders of Plates worth over Rs. 500 crore. With this order, the Order Book of the Company now stands at Rs. 9,300 crore (including Plates and Pipes).

In another development, the Plate Mill at Anjar has taken a shutdown of 45 days to implement the Coil Mill. The 1.5 million ton state-of-art Stackel Mill is part of the backward integration project of WGSRL and will improve the Company's internal flexibility to produce high grade Coils in-house. At CMP of Rs 63, the stock currently trades at a TTMPE of 4.2x its TTM earnings which makes it an investment case for long term investors with downside largely capped.

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