DI Pipes: A Path towards Clean Water
Drinking sufficient water a day can keep diseases away!!!
We all know that food, clothing, and shelter are essential for the survival of living beings. Without water, we can’t even think of spending even a single day. But have you ever wondered how this water is supplied to you daily?
The answer is through the Ductile Iron (DI) Pipes.
So What are Ductile Iron Pipes?
Don’t worry we won’t be talking about the scientific definition of it, we need pipes to supply utilities like oil and gas, water and sewage, etc. Each of them has different properties and nature which give rise to different types of pipes for transmission of different types of utilities.
When it comes to water supply and sewage application- DI Pipes come into the picture.
DI Pipe Applications:
DI Pipes have a wide range of applications in the entire water transportation chain starting from sourcing water from the water bed to transporting water to the last mile. DI Pipes are used in varied applications like:
- Distribution network of potable water
- Raw and clear water transmission
- A water supply for industrial/process plant application
- Ash-slurry handling and disposal system
- On and offshore fire fighting systems
- In desalination plants
And much more…
DI Pipe Market:
As per the Indian Government, 49% of Indian households have tap-water connections, up from 17% in 2019. Around 40% of the population doesn’t have sufficient access to safe water. To provide tap water to the entire population the country would need to double its coverage in the next 3-4 years.
The Indian Government has already announced the ‘NAL SE JAL’ initiative with an investment of Rs. 3.5 trillion out of which Rs.750 billion has already been utilized to give drinking tap water to each household in rural areas by 2024 to meet water requirements.
The overall water market is growing at 8-10% annually with growth drivers like urbanization, agricultural growth, and the government’s thrust on building sustainable water resources.
The market has witnessed 8-10% CAGR over the last decade and is likely to see 12-15% CAGR in the next 3-4 years based on government spending on ‘NAL SE JAL’.
Listed Companies in the DI Pipes Market:
1. Electrosteel Castings and Srikalahasti Pipes:
Electrosteel Castings is engaged in the business of manufacturing Ductile Iron (DI) Pipes, Ductile Iron Fittings (DIF), Cast Iron (CI) Pipes and produces and supplies Pig Iron.
Currently, Electrosteel Casting manufactures 2,80,000 pipes and Srikalahasti pipes manufactures 4,00,000 DI Pipes, in a total of 6,80,000 pipes. It has targeted to manufacture additional 1,00,000 pipes next year and extra 50,000 pipes in FY24.
2. Jindal SAW:
Jindal Saw Limited, the flagship company of PR Jindal group, is a leading global manufacturer and supplier of Iron & Steel pipes and pellets. The major products of the company are longitudinal submerged arc welded (LSAW) pipes, helical SAW (HSAW) pipes, ductile iron (DI) pipes, seamless pipes, and pellets. These products have applications in oil and gas exploration, transportation, power generation, supply of water for drinking, drainage, irrigation purposes and other industrial applications.
Currently, Jindal SAW has a manufacturing capacity of 6,00,000 pipes.
3. Tata Metaliks:
Tata Metaliks incorporated in 1990 as a subsidiary of Tata Steel, is one of India’s leading producers of high-quality Pig Iron (PI) and Ductile Iron Pipes (DIP).
Co. products find use in the water infrastructure industry and partly cast into PI for use in foundries.
Currently, Tata Metaliks has a capacity of manufacturing 2,00,000 pipes.
The Company has a diverse portfolio of value-added products including DRI (Sponge Iron), Pig iron, Ferro Alloys, Alloy, Mild Steel Billets, Ductile Iron Pipe, etc.
Currently, the company has a manufacturing capacity of 2,40,000 pipes.
Electrotherm (India) Limited is engaged in the manufacturing of Induction Furnace, Casting Machines, Transformers, Sponge and Pig Iron, Transmission Line Towers, Battery Operated Vehicles, Services relating to Steel Melting and Other Capital equipment, and others.
Currently, the company has a manufacturing capacity of 1,92,000 pipes.
DisclaimerInvestment/Trading is subject to market risk, past performance doesn’t guarantee future performance. The risk of trading/investment loss in securities markets can be substantial. Also, the above report is compiled from data available on public platforms.
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