1 week ago
Welspun Bets on Structural US Energy Infrastructure Growth
Welspun makes large pipes used in energy projects.
It won a very large contract connected to a pipeline in the United States.
The pipeline will help move energy from the Permian Basin toward LNG export infrastructure.
Welspun says making products locally in the United States helped it win the work.
The company plans to use its existing factories, with some improvements and added capacity.
Its total future work is now worth about $4.4 billion.
Welspun expects most of this work to be carried out in the United States over the next few years.
The company believes this demand will continue because more energy infrastructure projects are being planned.
Welspun Corp secured a ₹17,200 crore, or $1.8 billion, order linked to a Permian Basin export pipeline project.
The contract raises Welspun’s global order book to approximately $4.4 billion.
More than 60-65% of the order book is expected to be executed from the United States over three to three-and-a-half years.
Welspun says its US manufacturing footprint, customer relationships and capacity investments helped it win the order.
The company expects to execute the contract using existing US facilities, supported by debottlenecking and targeted capacity expansion.
- Who
- Welspun Corp and its managing director and CEO, Vipul Mathur.
- What
- Welspun secured a ₹17,200 crore, or $1.8 billion, order for a major export pipeline project.
- Where
- The project is in the Permian Basin in the United States, with execution across multiple locations in the United States and India.
- When
- The broader order book is expected to be executed over the next three to three-and-a-half years, with visibility through FY28-FY29.
- Why
- Welspun says strong North American energy production and planned pipeline infrastructure toward the Gulf Coast are creating demand.
Key facts
- New order
- ₹17,200 crore, or $1.8 billion
- Order type
- Export pipeline project linked to LNG infrastructure
- Global order book
- Approximately $4.4 billion
- US execution share
- More than 60-65% of the order book
- Execution period
- Three to three-and-a-half years
- Contract terms
- Fixed-price contracts denominated in US dollars
- Manufacturing plan
- Execution through existing US facilities, supported by debottlenecking and targeted capacity augmentation
Quotes
Vipul Mathur
Managing director and CEO of Welspun Corp Ltd
“We see this as part of a broader structural opportunity in the North American energy infrastructure market, rather than a one-off project.”
thehindubusinessline.com
“Our local manufacturing presence in the United States has been a key strategic advantage in securing this order.”
thehindubusinessline.com
Sources
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