Hi-Tech Pipes Ltd Management Discussions

GLOBAL ECONOMIC GROWTH

The global economy started 2024 with the confidence that inflation was largely beaten and that major economies would likely avoid recession. But as the year drew to a close, a nagging worry crept in: inflation proved to be much stickier than wed hoped. While the US economypoweredahead,manyotherdeveloped nations struggled to keep pace. On top of that, many countries saw their currencies lose value, a situation that could become especially tricky for developing economies.

Stepping in 2025, the global economic activity is expected to maintain modest momentum in 2025 owing to the likely shift in policy following numerous elections around the world. New policies could lead to new trajectories for inflation, borrowing costs, and currency values, as well as trade flows, capital flows, and costs of production. According to the IMF, the global economy is expected to grow at 3.3% both in 2025 and 2026, primarily on account of an upward revision in the United States offsetting downward revisions in other major economies. Global headline inflation is expected to decline to 4.2% in 2025 and to 3.5% in 2026, converging back to target earlier in advanced economies than in emerging market and developing economies.

Global economy growth projections

Global inflation is expected to ease gradually, dropping from 4.5% in 2024 to 3.5% in 2025, though it will still remain slightly above the 3.1% level seen in 2019. Advanced economies are likely

Global headline inflation is expected to decline to 4.2% in 2025 and to 3.5% in 2026, converging back to target earlier in advanced economies than in emerging market and developing economies to rein in inflation more quickly than emerging markets, but the path to price stability may not be smooth. Persistent wage and services inflation in some regions could lead to uneven monetary policy responses. Additionally, factors such as rising protectionism, geopolitical tensions, supply chain adjustments, and demographic shifts could keep inflationary pressures elevated, adding uncertainty to the global outlook.

Growth projections for advanced economies are taking different paths. In the United States, strong consumer demand continues to drive momentum, supported by rising wealth, a relatively flexible monetary policy, and favorable financial conditions. The economy is expected to grow by 2.7% in 2025 – 0.5 percentage points higher than the previous forecast in October. This upward revision reflects the carryover effect from 2024, along with a resilient job market and increasing investments. However, by 2026, growth is anticipated to gradually ease, aligning with its long-term potential.

Growth in the euro area is expected to improve, but at a slower pace than previously anticipated. Ongoing geopolitical tensions continue to dampen confidence, and weaker-than-expected momentum in late 2024 – particularly in manufacturing – has led to a downward revision of the 2025 growth forecast to 1.0%, 0.2 percentage points lower than earlier estimates. However, by 2026, growth is projected to reach 1.4%, driven by stronger domestic demand as financial conditions ease, confidence strengthens, and uncertainty gradually subsides.

Inemerging markets and developing economies, economic growth in 2025 and 2026 is expected to stay on par with 2024.

Chinas 2025 growth forecast has been slightly revised upward by 0.1 percentage point to 4.6%, mainly due to momentum from 2024 and the fiscal stimulus announced in November, which

The economy is expected to grow by 2.7% in 2025 – 0.5 percentage points higher than the previous forecast in October. This upward revision reflects the carryover effect from 2024, along with a resilient job market and increasing investments. However, by 2026, growth is anticipated to gradually ease, aligning with its long-term potential.

is helping counterbalance the negative impact of trade policy uncertainties and challenges in the property sector. In 2026, growth is expected to remain steady at 4.5%, as trade concerns ease and an increase in the retirement age helps slow down labor supply decline.

Meanwhile, Indias economy is projected to maintain a robust growth rate of 6.5% in both 2025 and 2026, consistent with earlier forecasts and aligned with the countrys long-term potential.

Economic growth in the Middle East and Central Asia is expected to improve, though not as much as previously anticipated. A key factor behind this adjustment is the 1.3 percentage point downgrade in Saudi Arabias 2025 growth forecast, largely due to the extension of OPEC+ production cuts.

In Latin America and the Caribbean, overall growth is set to edge up to 2.5% in 2025, even as some of the regions largest economies experienceaslowdown.Meanwhile,sub-Saharan

Africa is projected to see stronger growth next year, while emerging and developing Europe is likely to face a slowdown.

Outlook

According to the IMF, factoring in recent market trends and the impact of rising trade policy uncertainty, the uncertainty surrounding the global economy is expected to persist throughout 2025. However, the probable impact of any potential policy changes that are still under discussion.

In 2025, energy commodity prices are expected to decline by 2.6%, largely due to weaker oil demand from China and increased supply from non-OPEC+ countries (which includes Russia), though rising gas prices – caused by colder weather, supply disruptions, and ongoing conflicts in the Middle East – partly offset the decline. Meanwhile, non-fuel commodity prices are projected to rise by 2.5%, mainly driven by higher food and beverage costs due to adverse weather affecting major producers. On the monetary front, major central banks are expected to continue lowering interest rates, though at different speeds, depending on their respective economic growth and inflation outlooks. Fiscal policies in advanced economies, including the U.S., are expected to tighten in 2025–26, with a lesser degree of tightening in emerging and developing markets.

A key factor behind this adjustment is the 1.3 percentage point downgrade in Saudi Arabias 2025 growth forecast, largely due to the extension of OPEC+ production cuts.

INDIAN ECONOMY OVERVIEW

Even in FY25, the Indian economy continued to emerge as of the fastest growing economies in the world, but at a sluggish pace compared to the previous years. Slower growth in the first half of the fiscal (6%) led the RBI to bring down the annual projection to 6.6% (down from an earlier projection of 7%). However, according to the first advance estimates, Indias real GDP is expected to grow at 6.4% in FY25.

Some of the key factors which helped drive the growth of the Indian economy include, rural consumption has remained robust, supported by strong agricultural performance, while the services sector continues to be a key driver of growth. Manufacturing exports, particularly in high-value-added components (such as electronics, semiconductors, and pharmaceuticals), have displayed strength, underscoring Indias growing role in global value chains.

Indias economic growth momentum remains strong, with the real Gross Value Added (GVA) projected to expand by 6.4% in FY25. The agriculture sector is set for a healthy rebound, expected to grow at 3.8%, reflecting resilience

This adjustment largely stems from an unexpected 12.3% contraction in the Government of Indias capital expenditure during the first eight months of FY25 – a stark contrast to the budgeted 17.1% growth over FY24s actuals, as reported by the Controller General of Accounts (CGA).

in farm output. The industrial sector is poised for 6.2% growth, supported by a surge in construction activities and steady expansion in electricity, gas, water supply, and other utilities. Meanwhile, the services sector continues to be a key driver of economic activity, projected to grow at 7.2%, fueled by strong performance in financial and real estate services, professional sectors, public administration, and defense. This balanced expansion across sectors underscores the economys robustness and adaptability in the face of evolving challenges.1

Despite the overall positive outlook, certain challenges persisted, particularly in the manufacturing sector. Export growth in this segment faced a notable slowdown, largely due to subdued demand from key international markets. Additionally, the aggressive trade and industrial policies adopted by major trading nations further intensified the pressure, creating a more competitive and restrictive global landscape for manufacturing exports.

In its January 2025 update of the World Economic Outlook, the International Monetary Fund (IMF) revised Indias real GDP growth projection for FY25 to 6.5%, marking a 0.5 percentage point downgrade from its October 2024 forecast. This adjustment largely stems from an unexpected 12.3% contraction in the Government of Indias capital expenditure during the first eight months of FY25 – a stark contrast to the budgeted 17.1% growth over FY24s actuals, as reported by the Controller General of Accounts (CGA). The slowdown in public investment has, in turn, dampened gross fixed capital formation (GFCF) – a key indicator of investment activity – bringing its estimated growth down to 6.4% in FY25, compared to 9.0% in FY24. On the external front, however, there is a silver lining. The estimated 1.7 percentage point positive contribution of net exports to real GDP growth reflects the benefits of lower crude oil prices, even as global economic uncertainties continue to pose challenges for the economy.2

Indian MSME sector

The Micro, Small, and Medium Enterprises (MSME) sector is a critical enabler of Indias socio-economic progress. Beyond driving economic growth, it plays a crucial role

As a cornerstone of Indias industrial ecosystem, the MSME sector drives manufacturing, exports, and employment, shaping the nations economic fabric.

in shaping the nations entrepreneurial landscape, particularly in semi-urban and rural regions. Its contributions extend far beyond numbers, fueling innovation, creating jobs, and strengthening local economies. As a key engine of Indias GDP and exports, the MSME sector continues to be a catalyst for inclusive and sustainable development.

As a cornerstone of Indias industrial ecosystem, the MSME sector drives manufacturing, exports, and employment, shaping the nations economic fabric. With 5.93 crore registered MSMEs employing over 25 crore people, these enterprises form the backbone of economic activity. In 2023-24, MSME-related products contributed 45.73% of Indias total exports, underscoring their pivotal role in establishing the country as a global manufacturing powerhouse. Recognizing this, the latest budgetary provisions focus on fostering innovation, enhancing competitiveness, and improving resource accessibility. By empowering MSMEs with the necessary tools and support, the government aims to expand their reach and amplify their impact on Indias economic growth.

Exports from MSMEs have seen substantial growth, rising from _3.95 lakh crore in 2020-21 to _12.39 lakh crore in 2024-25. The number of exporting MSMEs has also surged, increasing from 52,849 in 2020-21 to 1,73,350 in 2024-25. Their contribution to Indias total exports has steadily grown, reaching 43.59% in 2022-23, 45.73% in 2023-24, and 45.79% in 2024-25 (up to May 2024). These trends underscore the sectors increasing integration into global trade and its potential to drive Indias position as a manufacturing and export hub.

Growth of MSME Exports (in _ lakh crore)

(Source: https://pib.gov.in/PressReleasePage. aspx?PRID=2099687#:~:text=Exports%20from%20MSMEs%20 have%20seen,%2C73%2C350%20in%202024%2D25.)

Key Budget takeaways for the Indian MSME Sector3

Revised classification criteria: To empower MSMEs with greater growth opportunities, the investment and turnover thresholds for classification have been significantly raised, by 2.5 times and 2 times, respectively. This strategic move aims to enhance operational efficiency, drive technological adoption, and create more employment opportunities, fostering a stronger and more competitive business ecosystem.

Enhanced credit availability: The credit guarantee cover for micro and small enterprises

3 https://pib.gov.in/PressReleasePage. aspx?PRID=2099687#:~:text=Exports%20from%20MSMEs%20 have%20seen,%2C73%2C350%20in%202024%2D25.

A Focus Product Scheme for the footwear and leather sector aims to boost innovation, manufacturing, and non-leather production, creating 22 lakh jobs and driving a _4 lakh crore turnover.

A new toy sector scheme will enhance cluster development and skill-building, positioning India as a global manufacturing hub.

has been increased from _5 crore to _10 crore, enabling additional credit of _1.5 lakh crore over five years. Startups will see their guarantee cover double from _10 crore to _20 crore, with a reduced fee of 1% for loans in 27 priority sectors. Exporter MSMEs will benefit from term loans up to _20 crore with enhanced guarantee cover.

Credit cards facility for micro enterprises: A new customised Credit Card scheme will provide _5 lakh in credit to micro enterprises registered on the Udyam portal, with 10 lakh cards set to be issued in the first year.

Support for startups and first-time entrepreneurs: A dedicated _10,000 crore Fund of Funds is likely to be launched to strengthen support for startups, fostering innovation and entrepreneurship across the country. Additionally, a new initiative will empower 5 lakh first-time women, Scheduled Caste, and Scheduled Tribe entrepreneurs by offering term loans of up to _2 crore over a five-year period. This initiative aims to create greater financial inclusion, encourage self-reliance, and unlock new opportunities for underrepresented entrepreneurs.

Focus on labour-intensive sectors: A Focus Product Scheme for the footwear and leather sector aims to boost innovation, manufacturing, and non-leather production, creating 22 lakh jobs and driving a _4 lakh crore turnover. A new toy sector scheme will enhance cluster development and skill-building, positioning India as a global manufacturing hub. Meanwhile, a National Institute of Food Technology in Bihar will accelerate food processing growth, unlocking opportunities in the eastern region.

Manufacturing and clean tech initiatives: A National Manufacturing Mission will provide policy support and roadmaps for small, medium, and large industries under the Make in India initiative. Special emphasis will be given to clean tech manufacturing, fostering domestic production of solar PV cells, EV batteries, wind turbines, and high-voltage transmission equipment.

Export scenario⁴

Despite the prevailing geopolitical tensions, the Indian goods and services exports is expected to cross $800 billion by the end of the current fiscal, signalling a robust economy and continued growth across sectors. This would be higher than the earlier record of $776.68 billion in the overall exports in FY24.

As demand for Indian products in the global market surges across categories, the countrys total exports reached about $778 billion in FY 2023-24, compared to $466 billion in FY 2013-14 - a whopping 67% growth. In 2023-24, merchandise exports stood at USD 437.10 billion, while services exports contributed USD 341.11 billion, demonstrating a well-balanced expansion. Key sectors like electronics, pharmaceuticals, engineering goods, iron ore, and textiles played a vital role in this surge. Strengthened by strategic policy measures, enhanced competitiveness, and broader market access, Indias export ecosystem is now more resilient and deeply

4 https://pib.gov.in/PressReleasePage.aspx?PRID=2098447 integrated into the global economy.

The momentum has continued into FY 2024-25, with cumulative exports during April-December 2024 estimated at USD 602.64 billion, a 6.03% increase from USD 568.36 billion in the same period of 2023. Strengthened by strategic policy measures, enhanced competitiveness, and broader market access, Indias export ecosystem is now more resilient and deeply integrated into the global economy.

(Source: https://pib.gov.in/PressReleasePage.aspx?PRID=2098447 & https://cfo.economictimes.indiatimes.com/news/india-on-the-path-to-hit-record-800-billion-in-exports-in-fy25/118059751#:~:text=News-,India%20on%20the%20path%20to%20hit%20record%20%24800%20 billion%20in,and%20continued%20growth%20across%20sectors.) [*Projected]

Indias share in world merchandise exports also improved from 1.66% to 1.81%, with the country advancing in rankings from 20th to 17th position. The feat was achieved as the government implemented several initiatives to sustain and accelerate export growth.

Outlook

India is poised to sustain a robust 6.5% GDP growth in FY 2026, driven by favorable monsoons and stable commodity prices. This momentum is supported by a resilient manufacturing sector, moderated inflation, tax incentives, and strong urban consumption. Additionally, continued infrastructure expansion and economic reforms are reinforcing Indias ability to navigate global uncertainties.

A key driver of this success has been the National Steel Policy (NSP) 2017, which set ambitious goals to propel Indias steel industry forward. The policy envisions achieving a crude steel capacity of 300 million tonnes by 2030-31, with an estimated production of 255 million tonnes of crude steel and 230 million tonnes of finished steel.

Looking ahead, India is expected to maintain its potential real GDP growth of 6.5% YoY from FY26 to FY28, positioning itself as the worlds third-largest consumer market by 2026 and the third-largest economy by 2027, trailing only the United States and China. The countrys nominal GDP is projected to rise from USD 4 trillion in FY25E to over USD 6 trillion by FY30E.

This growth trajectory is likely to be fueled by a manufacturing and export push, increasing services exports, and accelerated digitalization, all contributing to higher productivity and efficiency gains. However, challenges persist, including the need to create productive employment for the expanding workforce, a less favorable global trade environment, and the impact of automation on jobs.

INDIAN STEEL INDUSTRY OVERVIEW

Steel production and consumption have long been regarded as key indicators of a nations economic development, serving both as a fundamental raw material and a crucial intermediary product. It is no exaggeration to say that the steel industry has consistently been at the heart of industrial progress, forming the backbone of any thriving economy.

Indias steel industry is a testament to this transformative power, mirroring the nations broader economic evolution. From being a modest player on the global stage, India has rapidly ascended to become the worlds second-largest steel producer, surpassing Japan in 2018. This remarkable achievement underscores the countrys journey toward modernization, self-reliance, and sustainable industrial growth.

As of 2024, India stands as the worlds second-largest producer of crude steel, boasting a production capacity of 179 million tonnes (MT). Between April and October 2024, the country produced 85.40 million tonnes of crude steel and 82.81 million tonnes of finished steel. Steel consumption during this period surged to 85.70 million tonnes, underscoring robust demand across various industries. On the trade front, steel imports outpaced exports, with 5.768 million tonnes imported compared to 2.753 million tonnes exported. These dynamic highlights the evolving landscape of Indias steel sector, which continues to play a pivotal role in the nations manufacturing output.

The industrys growth trajectory has been remarkable, particularly between 2019 and 2024. During this period, Indias steel production expandedatanimpressive6%compoundannual growth rate (CAGR) – far exceeding Chinas 1% CAGR and standing in stark contrast to the 1% decline in global steel production. This strong performance reinforces Indias emergence as a key player in the global steel market.

A key driver of this success has been the National Steel Policy (NSP) 2017, which set ambitious goals to propel Indias steel industry forward. The policy envisions achieving a crude steel capacity of 300 million tonnes by 2030-31, with an estimated production of 255 million tonnes of crude steel and 230 million tonnes of finished steel. Designed to make India self-reliant in steel production, the NSP not only focuses on meeting domestic and global demand but also emphasizes capacity expansion, quality enhancement, and the adoption of sustainable, energy-efficient practices to ensure long-term industry growth.

and strategic capacity expansion. Crude steel production surged from 109.137 million tonnes (MT) in 2019-20 to 144.299 MT in 2023-24, marking a robust 13.4% year-on-year growth over the previous years output of 127.197 MT in 2022-23. This growth has been supported by an expansion in domestic steel capacity, which increased from 142.299 MT per annum in 2019-20 to 179.515 MT in 2023-24. Notably, capacity utilization also rose to 81% during this period, underscoring the industrys efficiency gains.

However, Indias steel journey isnt just about capacity expansion – its equally a story of rising domestic consumption. Finished steel consumption grew from 100.171 MT in 2019-20 to 136.291 MT in 2023-24, reflecting a strong 13.7% increase over the previous year, fueled by infrastructure development and a booming manufacturing sector. With initiatives like ‘Atmanirbhar Bharat fostering self-reliance, India is not only ramping up production but also reducing import dependency and strengthening its export competitiveness. Looking ahead, industry projections estimate a conservative 6% CAGR in steel demand through FY27, positioning Indias steel sector for sustained growth and global prominence.

Key initiatives undertaken by the government to boost the steel industry

Indias steel sector is on a transformative path, driven by the Production Linked Incentive (PLI) Scheme, which is attracting _29,500 crore in investments to add 25 million tonnes of specialty steel capacity. Policy reforms in the Union Budget 2024, including lower customs duty on ferro nickel and extended exemptions on ferrous scrap, are ensuring a cost-effective supply chain.

The DMI&SP Policy promotes self-reliance by prioritizing locally made steel in government procurement. Sustainability efforts, such as the National Green Hydrogen Mission and Steel Scrap Recycling Policy, are advancing decarbonization and resource efficiency.

With mega infrastructure projects, ‘Make in India, and the PM Gati-Shakti Plan fueling demand, Indias steel industry is poised for significant growth, strengthened by government and private sector investments to achieve the National Steel Policy 2017 targets.

Key factors to drive demand for steel

Surging demand for infrastructure and urbanization

Infrastructure development is a key driver of steel demand in India. The governments focus on building smart cities, expanding highways, railways, bridges, and energy projects is fueling the growth of the steel market. Flagship initiatives like the Smart Cities Mission and PM Gati-Shakti are set to further boost demand for steel in India.

Advancements in the automotive and aerospace

Indias growing EV and automotive sectors are driving demand for high-strength and lightweight steel. With rising EV adoption, steel is crucial for battery casings, ensuring durability and safety. Aerospace advancements are also increasing the use of innovative steel alloys for improved performance and fuel efficiency. New safety regulations are pushing manufacturers to adopt stronger steel alloys, while advanced high-strength steel (AHSS) enables lighter, more efficient vehicle production. Additionally, corrosion-resistant alloys enhance component longevity, supporting Indias push for sustainable manufacturing. As next-generation mobility expands, steel remains integral to Indias industrial and transportation growth.

Indias growing EV and automotive sectors are driving demand for high-strength and lightweight steel. With rising EV adoption, steel is crucial for battery casings, ensuring durability and safety. Aerospace advancements are also increasing the use of innovative steel alloys for improved performance and fuel efficiency.

Technological advancements in steel production

Indias steel industry is rapidly adopting advanced technologies to boost efficiency, reduce costs, and minimize environmental impact. Leading Indian steelmakers are pioneering hydrogen-based steel production, driving demand for sustainable steel solutions. The integration of predictive analytics and machine learning is enhancing automation in industrial processes, improving productivity. Additionally, the rise of additive manufacturing is unlocking new applications for steel, further expanding its market potential. As India accelerates infrastructure development and embraces technological advancements, the demand for high-quality, innovative steel is set to surge, strengthening the sectors long-term growth and global competitiveness.

Governments policy support

Indias rapid infrastructure expansion and policy support are driving robust demand for steel. The National Steel Policy (NSP) and the Production-Linked Incentive (PLI) scheme are boosting domestic production to meet growing needs. Major government-led initiatives like smart cities, highways, railways, and urban development projects are fueling large-scale steel consumption, reinforcing the sectors pivotal role in Indias economic growth and self-reliance.

Greening the Steel Sector in India: A Roadmap to Decarbonisation

In alignment with Indias climate commitments and the vision of building a globally competitive, sustainable steel industry, the Ministry of Steel has introduced its decarbonisation roadmap, titled "Greening the Steel Sector in India." This comprehensive 14-point action plan outlines key strategies to reduce emissions and enhance efficiency across the steel value chain.

A significant aspect of this roadmap is the development of a green steel taxonomy, which includes certified monitoring systems to track emissions effectively. The Indian government is also prioritizing green markets, particularly in public procurement, to encourage sustainable practices within the industry.

The strategy emphasizes optimizing the entire value chain—from raw material sourcing to final processing—with the twin goals of reducing costs and improving operational efficiency. A major focus of both the decarbonisation roadmap and Indias broader industrial policy is carbon capture technologies, including Carbon Capture and Storage (CCS) and Carbon Capture and Utilisation (CCU). Additionally, the adoption of renewable energy sources and the integration of green hydrogen as a key enabler of clean steel production are central to this transition.

One of the critical shifts outlined in the roadmap is the transition from coal-based Direct Reduced Iron (DRI) production to a gas-based DRI process, using natural gas as a bridge fuel before fully adopting green hydrogen. This involves replacing coal-based rotary kilns with gas-based shaft furnaces to facilitate a seamless transition to cleaner production methods. Beyond natural gas, other fuel alternatives such as industrial waste gases, synthesized gas, and coal bed methane (CBM)—an unconventional natural gas found in coal deposits—are also being explored to reduce emissions.

Given the steel sectors heavy reliance on coal and coke for both process heat and as a reducing agent, the roadmap also advocates for eco-friendly alternatives. One such promising substitute is biochar, derived from renewable biomass, which has the potential to significantly lower carbon emissions. However, as the report highlights, widespread adoption of biochar faces stiff competition from traditional coal-based fuels due to cost and availability challenges.

Despite the industrys continued dependence on coal in the near term, Indian steel companies are already implementing a range of decarbonisation initiatives, including:

_ Renewable Energy: Increasing the share of solar, wind, and other renewable sources to power electric steel production.

_ Recycling: Enhancing the use of scrap steel to reduce reliance on primary steel production and its associated emissions.

_ Innovation & Technology: Investing in hydrogen-based steelmaking, advanced research, and new production techniques to minimize fossil fuel dependency.

Indias steel sector is at a pivotal moment, balancing growth ambitions with sustainability imperatives. With focused efforts on innovation, policy support, and green technologies, the industry is steadily paving the way for a low-carbon future while reinforcing its role as a global leader in sustainable steel production.

Outlook

With rising domestic demand and strong policy-driven incentives, Indias steel sector is expected to witness a surge in investments in the industry along with a rising demand for steel. Both public and private players are actively expanding capacities and embracing technological upgrades to boost efficiency and align with sustainability goals. As India charts its course toward becoming a $5 trillion economy, steel will play a pivotal role in shaping the nations infrastructure, manufacturing base, and export capabilities.

Today, the steel industry stands as a cornerstone of Indias industrial and economic development. Backed by robust government support, a thriving domestic market, and growing emphasis on eco-friendly production, the sector is well-poised for sustained growth. However, in a rapidly evolving global landscape, challenges such as trade dynamics and environmental responsibilities call for a thoughtful, strategic approach.

By prioritizing innovation, sustainability, and forward-looking policies, Indias steel sector is not just keeping pace – but is gearing up to lead, playing a vital role in driving the nations long-term economic ambitions.

INDIAN PIPING INDUSTRY

The Indian pipe industry is a dynamic sector, driven by growing demand from infrastructure, oil and gas, power, and water and sanitation industries. The pipes market is primarily driven by various factors, such as a rise in the number of new residential and commercial buildings, development of water supply pipelines, an increase in the number of wastewater treatment facilities, public agriculture irrigation systems, and other infrastructure developments.

The pipe industry in India is a crucial sector that plays a significant role in the countrys infrastructure development, including water supply, sewage systems, oil and gas transportation, and industrial applications. With the rapid pace of urbanization, industrialization, and the governments push for infrastructure development, the Indian pipe industry is poised for substantial growth.

Driven by government spending on infrastructure, robust real estate and agriculture demand, the domestic pipe industry is expected to grow at a CAGR of around 10% to 12% over the medium term between the financial year 2026 and 2027.

Indias pipe industry encompasses a wide range of products, including:

_ PVC Pipes: Used primarily in plumbing, irrigation, and sewage systems.

_ HDPE Pipes: Commonly used in water supply, gas distribution, and industrial applications.

_ Steel Pipes: Vital for the oil and gas industry, water transportation, and construction.

_ Ductile Iron Pipes: Used in water supply and sewage systems due to their strength and durability.

The India steel pipe and tube market was valued at US$18 billion in 2025 and is projected to grow at a CAGR of 9% from 2025 on account of increasing investments towards infrastructure projects such as industrial establishments, residential complexes etc. Growing demand from automotive sector has been driving sales of steel pipes while increased spending towards energy projects especially water pipelines will continue to increase need for galvanized steel pipes throughout the country. Moreover, large-scale investment made towards agriculture-based activities will further supplement demand for this product segment. Furthermore, government policies aimed at promoting domestic production are likely to benefit local players operating within this space over upcoming years.

Different segments of Indian steel pipes & tube industry

Types of pipes	Key application areas
Seamless	High-pressure conditions like oil & gas exploration & drilling, boiler, automobiles, pipelines, refineries
Spiral HSAW	Low-pressure application cross-country line pipes for oil & gas and water transportation
LSAW	High-pressure application, cross-country line pipes for oil & gas transportation
ERW	Low/medium pressure application, application in urban and rural infrastructure, industrial application in engineering, automobile, and process industry
Black steel pipe	Water, gas, air, steam, sewage, water wells, mechanical hot water circulation in a boiler system, general engineering purpose
Galvanized iron pipe	Carrying water in homes and commercial buildings, structural application
Ductile iron pipe	Transporting water for drinking water application, sewage treatment, and industrial water supply

Key growth drivers of the Indian steel pipe industry

Growing Indian housing & infrastructure space

Urban development initiatives such as the Smart Cities Mission, AMRUT Scheme, HRIDAY, and the National Infrastructure Pipeline (NIP) are expected to significantly boost the demand for steel pipes. The growing trend of vertical development, increased investments in skyscrapers, and the surging demand for warehousing—driven by rapid digital transformation—are further contributing to this momentum.

Moreover, accelerated urbanization in Tier II and III cities, marked by the rise in G+20 residential and commercial structures, the adoption of green building norms, and government-led housing programs like PMAY-G (Pradhan Mantri Awas Yojana – Gramin), are all expected to further propel demand in the coming years.

Governments water supply programs to drive demand

The construction of water supply and sanitation infrastructure is expected to drive the adoption of seamless steel pipes in India. Under the Governments ‘Nal Se Jal initiative, launched as part of the Jal Jeevan Mission, the aim is to provide piped water to every rural household in India by 2024, backed by an ambitious outlay of _3.5 lakh crore. This mission is focused on ensuring safe and adequate drinking water through individual household tap connections across rural India. Complementary initiatives such as Jal Shakti Abhiyaan, river linking projects, AMRUT, and Namami Gange are also driving large-scale water infrastructure development. Collectively, these programmes are expected to significantly boost the demand for steel pipes, creating strong growth opportunities for the sector.

Growing demand for city gas distribution

An estimated demand of 4 million metric tonnes of pipes is projected, driven largely by the expansion of the City Gas Distribution (CGD) network and the ‘One Nation, One Gas Grid initiative. With the pipeline infrastructure expected to grow by 17,000 km—reaching a total of 34,500 km by 2025 – the demand for steel pipes is set to rise significantly in the coming years.

Growing governments focus on Indian defence sector to drive demand for steel pipes

The growing focus of the Indian government on strengthening the defence sector is expected to significantly boost demand for steel pipes. With increased investments in infrastructure for naval ships, submarines, aerospace, and border security installations, the need for durable, high-performance steel components is rising. Steel pipes, essential for structural support, fuel transport, and precision systems, are set to play a critical role in meeting the evolving requirementsofmoderndefencemanufacturing and infrastructure development.

Indias growing investment in infrastructural development

Under the UDAN (Ude Desh ka Aam Naagrik) scheme, the Government of India aims to operationalize 100 new airports by 2025, enhancing regional connectivity and accessibility. In parallel, a significant investment of _1 trillion is planned for railway infrastructure, underscoring a commitment to modernize and expand the nations transport backbone. Looking further ahead, the government has announced a bold vision to invest _50 lakh crore by 2030 for the redevelopment of 400 railway stations, the construction of four new freight corridors, advancement of the bullet train project, and the development of the National Rail Corridor—marking a transformative leap in Indias infrastructure landscape.

Indian agriculture and solar industry are expected to drive demand

The agriculture and solar industries are emerging as key drivers of demand for steel pipes in India. In agriculture, the push for modern irrigation systems, water management solutions, and rural infrastructure is fueling the need for durable and cost-effective steel piping. Simultaneously, the rapid expansion of solar power projects, especially ground-mounted installations, requires strong and reliable steel structures and tubing for panel mounting and support. As both sectors grow under national development and sustainability initiatives, the demand for steel pipes is expected to rise significantly.

Growth of the Indian automotive sector

The growth of the automotive industry, especially in the high-performance vehicle segment, has significantly driven demand for steel pipes. These vehicles require durable, high-strength materials for exhaust systems, chassis components, and structural reinforcements—areas where steel pipes play a critical role. As manufacturers focus on performance, safety, and efficiency, the use of advanced steel solutions continues to rise, further strengthening the steel pipe market.

Outlook

The Indian tube and pipe industry, deeply intertwined with both infrastructure and consumer-driven sectors, is poised for steady growth in the near future. This optimism is underpinned by increased government investment in infrastructure and a rise in consumer spending. As consumer demand fuels key industries like real estate, automotive, and manufacturing—all of which rely heavily on steel products—the demand for tubes and pipes is set to grow.

While the pace of large-scale infrastructure projects may moderate, fresh demand for raw materials will continue to emerge. Although growth in heavy industries might face short-term slowdowns, a consumption-led recovery could unlock new opportunities for expansion

The agriculture and solar industries are emerging as key drivers of demand for steel pipes in India. In agriculture, the push for modern irrigation systems, water management solutions, and rural infrastructure is fueling the need for durable and cost-effective steel piping.

across related sectors.

The recent Union Budget has further strengthened this outlook. With focused policy measures, substantial financial allocations, and strategic reforms, the Government of India is taking decisive steps to boost the tube and pipe industry—an essential pillar of infrastructure development, construction, oil & gas, water supply, and manufacturing. These initiatives aim to stimulate demand, attract investments, and encourage innovation, setting the stage for long-term, sustainable growth.

COMPANY OVERVIEW

Hi-Tech Pipes Limited (Hi-Tech Pipes) is a leading name in the Indian piping industry, known for its strength, scale, and steadfast commitment to quality. Established in 1985, the Company has steadily grown to become one of Indias largest steel pipe manufacturers, with an impressive installed capacity of 750,000 tonnes per annum spread across six state-of-the-art facilities.

Over the years, Hi-Tech Pipes has built a reputation grounded in reliability and trust.

What sets the Company apart is its diverse and evolving product portfolio, designed to meet the dynamic needs of its customers. While steel pipes remain its core offering, Hi-Tech Pipes has expanded its range to include structural tubes, CR sheets, galvanized coils, solar structures, and metal crash barriers—each reflecting the Companys deep understanding of market demands.

At the heart of Hi-Tech Pipess operations is a clear focus on precision manufacturing and product customization, driven by a commitment to deliver solutions tailored to specific customer requirements. The adoption of advanced technologies across its facilities has further strengthened its ability to offer high-quality, high-performance products with greater efficiency and consistency.

With a robust distribution network of 550+ dealers and retailers, and a comprehensive portfolio of over 1,200 SKUs, Hi-Tech Pipes enjoys a strong pan-India presence. By combining technological excellence, manufacturing expertise, and customer-centricity, Hi-Tech Pipes Limited is well on its way to cementing its position as a frontrunner in Indias piping solutions landscape.

Our operational prowess

At Hi-Tech Pipes, our operations are centered around manufacturing a wide array of high-quality steel pipes and tubes that cater to a diverse spectrum of industries—including infrastructure, telecommunications, defense, railways, airports, real estate, and automotive, among others. This broad industry reach empowers us to design and deliver products that are not only well-received by customers but also competitively priced. To keep pace with growing demand, weve optimized the utilization of our manufacturing facilities to their full potential.

Our pursuit of operational excellence is driven by ongoing efforts to enhance process efficiency and invest in focused research and development. We believe in continuous improvement, and that mindset is embedded in everything we do. Our manufacturing is further supported by a strong, integrated logistics and distribution network—both inbound and outbound—ensuring timely and dependable deliveries to our customers.

Additionally, we place significant emphasis on harnessing the power of data and analytics to enable real-time, informed decision-making. This data-driven approach strengthens our performance, supports agility, and helps us stay ahead in a highly competitive industry.

Our core strategies

_ Diversify and expand product portfolio: The Companys consistent attempts to diversifying its portfolio by introducing new products has resulted in an improved ability to serve customers from different walks of life.

_ Innovative and futuristic products: Along with expanding its product portfolio, the Company also prioritises product innovation, catering to evolving consumers requirements.

_ Customer centric approach: The companys customer-centric approach is reflected in its diverse end-user industry base, which includes automotive, agriculture, water supply, oil & gas, defence and infrastructure among others. Further, Hi-Tech Pipes provides value-added services and products ensuring that customers receive tailored solutions and expert guidance.

_ Increased usage of technology and digitization: Supply chain capabilities and manufacturing of the Company have significantly increased over the years. This has been achieved by leveraging automation and adopting a digital ecosystem.

_ Expansion of manufacturing base across the nation: The Companys manufacturing units are strategically located across India, placing us close to key consumption markets. This proximity not only strengthens our supply chain efficiency but also gives us a distinct competitive advantage in serving our customers faster and more effectively.

Financial review

Revenue from operations achieved during FY 2025 was _3070 crores, as against _2700 crores in the previous FY 2024, registering 14% year-

Our pursuit of operational excellence is driven by ongoing efforts to enhance process efficiency and invest in focused research and development. We believe in continuous improvement, and that mindset is embedded in everything we do.

Key challenges for the Company

Intense competition	Raw material availability and cost	Technology	Change in consumer preferences
Many renowned domestic players are vying for market share. The Company may face challenge from peers offering similar products at lower price or with innovative features.	Any fluctuations or disruptions in the availability of raw materials can significantly affect the Companys profitability and operational efficiency. Consistent access to quality inputs is essential for maintaining smooth operations and delivering value, making supply chain stability a critical focus area.	Emerging technologies and advanced manufacturing methods have the potential to make existing production processes obsolete, challenging businesses to adapt and innovate in order to stay competitive.	Shifting customer preferences towards alternative materials or modern construction methods can impact the demand for traditional steel products. As new technologies and innovations gain traction, they may influence buying decisions, posing a potential challenge to the continued reliance on conventional steel solutions.

on-year growth. Profit before tax (PBT) was recorded at _98 crores against _59 cores during the previous year. Profit after tax (PAT) for the year stood at _73 cores against _ 44 cores during the previous year. For FY 2025, EDITDA grew by 39% YoY to _160 cores in FY 2025, compared to _ 114 cores in FY 2024. EBITDA margin for FY 2025 stood at 5.21% improved by .96 bps on a YoY basis. Various cost control measures, coupled with better market dynamics, led to higher growth in EBITDA.

Total long term borrowings of Hi-Tech Pipes as of March 31, 2025 stood at _25.46 crores vis-?-vis _106.45 crores as on March 31, 2024. The reduction in borrowings was largely because of the regular repayment of long-term secured loans.

Risk management

A thorough risk-management framework allows us to pre-emptively monitor risks emanating from the internal and external environment. As a result, we have been able to consistently create value for all our stakeholders, despite industry cycles and economic headwinds.

Our risk management process

Identification and assessment approach	Prevention and control strategy	Monitoring	Reviewing and reporting on the risk
Forecasting and calculating the probability of occurrence, magnitude, category and rating of the risk.	Devising plan of actions to prevent risk, temper its strength and reduce its aftermaths.	Gauging the potency of controls, reacting to the revelations and continuously honing the method.	Overseeing the process at regular intervals (at least annually).

Our risk mitigation plan

The Board takes the following steps as a part of its risk management and mitigation plan:

_ Defines the roles and responsibilities of the Risk Management Committee

_ Participates in major decisions affecting the organisations risk profile

_ Integrates risk-management reporting with the Boards overall reporting framework The Company functions under a well-defined organization structure. Flow of information is well defined to avoid any conflict or communication gap between two or more departments. Second-level positions are created in each department to continue the work without any interruption in case of nonavailability of functional heads. Proper policies are followed in relation to maintenance of inventories of raw materials, consumables, key spares and tools to ensure their availability for planned production programmes. Effective steps are being taken to reduce the cost of production on a continuing basis, taking various changing scenarios in the market.

Risks and Concerns

Risk	Definition	Mitigation
Regulatory Risk	The risk of regulation changes can affect operations in multiple global markets.	The Company conscientiouslyadheres to all Safety, Health, and Environment (SH&E) standards. It implements various waste minimization and recycling practices and ensures strict adherence to all pollution control and emission regulations.
Raw Material Risk	The unavailability of raw materials and fluctuation in raw material prices are significant threats to the business.	The Company has long-term contracts and longstanding relationship with both domestic suppliers to ensure an uninterrupted supply of raw materials at competitive prices. Further, the Company has implemented an effective material management system to ensure an efficient tracking stock status.
Innovation Risk	The inability to innovate and regularly offer value- added products may lead to stagnating business growth.	The Company is a research-focused organization with a team of technically competent, thereby enabling the Company to periodically introduce new and value-added products.
Customer Retention Risk	The risk of being unable to retain clients due to the rising complexity in demand.	The Company has a wide array of products enabling Hi-Tech Pipes to cater a wide range of end-user industries and also long-term contract with its clients to supply different products. The Companys strong emphasis on research and innovation, and offering effective value for money products is why our clients find Hi-Tech Pipess products appealing and continue to be interested in them.
Quality Risk	Any divergence in the quality standards may cause loss of customers, revenue, and reputation.	Hi-Tech Pipes is a quality conscious and quality focused player. The quality of the products is monitored rigorously by a dedicated team. Hi- Tech Pipes holds certifications such as various iso, bis and other national and international certifications upholding the Companys quality focus mindset.

Information Technology

Your Company recognizes the critical role of a robust IT infrastructure, both in scale and technology, as the cornerstone of stable IT systems and superior support. Boasting state-of-the-art IT systems, it possesses a comprehensive

IT framework essential for managing service administration and delivery. The Companys IT setup is instrumental in generating a variety of business intelligence reports for production management, electronic procurement, paperless transactions, budgeting, forecasting, and cash flow analysis, supporting Hi-Tech

Pipes. It adheres to international benchmarks in information automation, performance metrics, remote working capabilities, and managerial excellence. The technical team is tasked with system programming and providing user support for technological advancements.

Internal control system and adequacy

The Company has in place strong internal control procedures commensurate with its size and operations. The Company believes that safeguarding of assets and business efficiency can be prolonged by exercising adequate internal controls and standardizing operational processes. The internal control and risk management system is structured and applied in accordance with the principles and criteria established in the corporate governance code of the organisation. It is an integral part of the general organizational structure of the Company and Group and involves a range of personnel who act in a coordinated manner while executing their respective responsibilities. The Board of Directors offers its guidance and strategic supervision to the Executive Directors and management, monitoring and support committees.

Human resource

At Hi-Tech Pipes, we firmly believe that our people are our greatest strength. Thats why we consistently invest in building and nurturing our Human Capital. By bringing together a team of skilled professionals and essential support staff, we have created a strong foundation that empowers the company to function independently and efficiently.

We are deeply committed to fostering a workplace culture built on meritocracy, integrity, and strict adherence to legal and compliance frameworks. A range of governance policies has been introduced to ensure every employee feels safe, heard, and respected. Our Code of Conduct includes clear measures to prevent sexual harassment and incorporates a robust whistleblower policy that allows concerns to be raised and addressed without fear of retaliation or bias.

What truly sets us apart is the collective strength and unity of our team. We view training and upskilling not just as tools for professional growth, but as essential elements of personal development. Regular learning and development initiatives are held to help our employees unlock their full potential. We also place high importance on transparent communication, ensuring open and honest dialogue between teams and leadership. These efforts not only foster trust but also play a key role in attracting and retaining top talent, further strengthening our reputation as a people-first

The Company believes that safeguarding of assets and business efficiency can be prolonged by exercising adequate internal controls and standardizing operational processes. The internal control and risk management system is structured and applied in accordance with the principles and criteria established in the corporate governance code of the organisation.

organization. With a strong focus on strategic HR practices and effective people management, Hi-Tech Pipes continues to build a workforce that is both capable and content. As of 31st March 2025, we are proud to have over 535 dedicated individuals as part of the Hi-Tech Pipes family.

Health and safety measures

The well-being of our staff is of paramount importance. Leadership in our factories spearheads our commitment to health, safety, and environmental (HSE) standards, conducting frequent audits to bolster our workforces health and safety. With their guidance, weve implemented numerous initiatives to enhance our personnels safety. Additionally, we have formed teams dedicated to quickly identifying and addressing safety issues at each manufacturing location. Our Company enforces a comprehensive set of health and safety guidelines that all employees across every site must rigorously follow.

In light of the pandemic, we intensified our focus on these protocols. Beyond adhering to governmental regulations, weve instituted regular sanitization processes and enforced proper social distancing measures. Proactive steps, including routine employee health checks and controlled access via oximeter and thermal screenings, were promptly put in place. Moreover, we initiated wellness programs for our employees and their families, aimed at fostering resilience, adapting to change, and improving overall well-being during these trying times.

Cautionary statement

The statements made in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations may be "forward-looking statements" within the meaning of applicable securities laws & regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand-supply and price conditions in the domestic & overseas markets in which the Company operates, changes in the government regulations, tax laws & other statutes & other incidental factors.