The Indian pipe market is poised for steady growth due to strong investments and capacity additions. The market size is estimated to be around X million tons by 20--, valued at INR M-N billion. Demand for pipes is expected to rise significantly, hitting A km by 20--. Key drivers of growth include expansion of oil and gas pipelines, increased spending on water projects, and growth in real estate and automotive sectors. However, rising input costs, rupee appreciation, and competition from China pose challenges. PVC pipes are gaining popularity over traditional pipes for more applications. HSAW pipes also see higher demand than LSAW pipes. Major players in the market include Player 1, Player 2, Player 3 and Player 4

1. Pipe Market – India
Pipe Market India
August 2011

2. Executive Summary
 The market size of pipes is estimated to be M mn tons as in 20‐‐
Market  Demand for pipes will rise and is expected to hit A km by 20‐‐
Overview  Total investment over 20‐‐‐‐ is expected to be INR B bn
Drivers Challenges
 Expansion of pipelines for oil and  Rise in input prices
natural gas sector
Drivers &  Appreciation of rupee
 Increasing spend on waterways
g p y
Challenges projects  Competition from Chinese manufacturers
 Competitive edge for Indian players
 Tremendous growth of the real
estate and the auto sector
 PVC pipes are in demand and are finding many uses which were earlier dominated by traditional
pipes
Trends  HSAW pipes are more in demand than the LSAW as they are more easily available, cheaper and
can be used for a wide range of applications
 New players have to be approved by API in order to become supplier to the oil and gas majors
l h b db i d b li h il d j
Major Players in the Market
Competition
Player 1
Pla er 1 Player 2
Pla er 2 Player 3
Pla er 3 Player 4
Pla er 4
PIPE MARKET IN INDIA 2011.PPT 2

3. •Market Overview
•Drivers and Challenges
g
•Trends
•Competition
•Key Developments
PIPE MARKET IN INDIA 2011.PPT 3

4. Indian pipe sector is poised for steady growth due to strong
investments and capacity additions
Market Overview Market Size and Growth
• Indian pipe industry is witnessing large influx of funds
and capacity addition X%
6
B
A
• Market is expected to be valued at K mn tons in 20‐‐
which translates to a total market size of INR M to N 4
bn
2
• This is primarily because the sectors where pipes are
used are growing strongly and include telecom, 0
natural gas, power, airports, malls etc. 20-- 20--
• Key policy led initiatives like urban infrastructure
program under private public partnership model can Pipe Industry Segmentation (20‐‐)
also b t th pipe i d t
l boost the i industry
• As of 20‐‐, India had C km of pipeline with investment MI M2 M3 M4
of INR R bn
 Jth five year plan (20‐‐‐) pipelines with length of D Km with a1%
capital investment of ~INR Y bn is expected
Others W%
• All the major pipe producing companies have a2%
increased their capacity to meet demand a4
PVC V%
a3
Note: Market Size and Segmentation figures do not include Cement Pipes
PIPE MARKET IN INDIA 2011.PPT 4

5. Valued customers include government, private players as
well as international customers
‐‐Globally, the demand for pipes is expected to be ‐‐mn tons over 20‐‐‐20‐‐
Oil & Gas sector Hydraulic Cylinder
A1, A2,A3,A4.A5, A6 B1,B2,B3,B4,B5
Hydrocarbon & Process Industry
y y Boiler, Heat Exchanger & Condenser
, g
C1, C2,C3,C4,C5 D1,D2,D3,D4,D5
Exports Mechanical & General Engineering
E1, E2, E3,E4,E5 K1,K2,K3,K4,K5
Infrastructure
SAMPLE
SAMPLE J1,J2,J3,J4,J5
PIPE MARKET IN INDIA 2011.PPT 5

6. Drivers & Challenges – Summary
Challenges
Rise in input prices
Drivers
Expansion of pipelines in oil & gas Appreciation of rupee
sector
Increasing spend on waterways Competition from Chinese
projects manufacturers
Competitive edge for Indian players
Tremendous growth for real estate
and auto sector
PIPE MARKET IN INDIA 2011.PPT 6

7. Trends – Summary
PVC pipes are more
popular
Key
Trends
d
Entry barrier for new HSAW pipes are more in
entrants demand than LSAW
d d h LSAW
PIPE MARKET IN INDIA 2011.PPT 7

8. Major Players (1/13)
Company Snapshot: Player 1
Corporate Information Financial Performance
Revenue
Headquarters Location 1
Location 1
INR bn Net Income INR bn
Founded 19‐‐ 100 8
73.5 80.2
80 6
57.4
Products Product 1 , Product 2 60
39.9 4
40
20 2
Key People Person 1, Position 1 0 0
2008 2009 2010 2011
Business Highlights
Business Highlights
• Player 1 is a one stop service provider for all pipe solution with the capability of manufacturing pipes ranging from x1
inch to x2 inches
• Player 1’s pipe division are present in A1 and BI
• Global clients of Player1 include C1,C2,C3.
l b l l f l l d
• In 20‐‐, the company has bagged orders of INR J bn from various international clients
• The total orders booked so far is INR J2 bn
• Quality of the pipes has been approved by ‐‐ and till date has supplied more than G km of pipes
PIPE MARKET IN INDIA 2011.PPT 8

9. Thank you for the attention
The Pipe Market – India report is part of Netscribes’ Manufacturing Series.
For more detailed information or customized research requirements please contact:
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PIPE MARKET IN INDIA 2011.PPT 9