Hi-Tech Pipes Ltd Management Discussions

Global economy overview

The year 2026 has begun against a backdrop of heightened global uncertainty, driven by ongoing geopolitical tensions and financial market pressures. Developments across key regions, coupled with elevated debt levels and a prolonged high-interest rate environment, continue to weigh on global economic stability.

At the macro level, policy uncertainties in major economies, particularly the United States, along with the risk of renewed trade tensions, have added complexity to the global outlook. Increasing competition and weakening multilateral cooperation have further contributed to a more fragile and unpredictable environment. Additionally, rising social and political tensions in certain regions, especially in parts of Europe, reflect underlying economic and societal challenges. These pressures, alongside lingering health concerns and the growing impact of climate change, underscore the need for greater resilience and strategic adaptability across economies and industries.

The global economy continues to witness uneven growth across regions. In the United States, growth is expected to remain steady at around 2.2%, supported by resilient consumer spending, despite a rise in corporate bankruptcies. The eurozone is projected to grow modestly at about 1%, with Germanys recovery providing some support, while France continues to face fiscal pressures, resulting in a relatively subdued growth outlook of ~0.9%.

Central Europe has shown stronger momentum, led by Poland with an estimated growth of 3.8%. In Asia, Chinas growth is expected to moderate to around 4.4%, potentially weighing on regional dynamics, while Southeast Asia presents a mixed picture across markets. In contrast, India remains one of the fastest-growing major economies, with growth projected at approximately 6.1%, driven by robust domestic demand, ongoing structural reforms, and proactive policy support.

Outlook

After a year of elevated trade barriers and uncertainty, the global economy now faces

Global economic growth

Region	2025	2026	2027
World	3.3	3.3	3.2
United States	2.1	2.4	2.0
Euro Area	1.4	1.4	1.5
MECA*	3.7	3.9	4.0
EDA*	5.4	5.0	4.8
LATC	2.4	2.2	2.7
Sub-Saharan Africa	4.4	4.6	4.6

Source: https://www.imf.org/en/publications/weo/issues/2026/01/19/world-economic-outlook-update-january-2026
[MECA - Middle East and Central Asia, EDA - Emerging and Developing Asia, LATC - Latin America and The Caribbean]

Budgetary Outlay (? in crore)

Year	Budgetary Outlay (? in crore)
2019-20	7.01
2020-21	7.57
2021-22	15.69
2022-23	21.42
2023-24	22.13
2024-25	22.13
2025-26	23.16
2026-27	24.56

Source: https://www.coface.com/news-economy-and-insights/risk-review-2026-a-moment-of-truth-for-the-global-economy

renewed pressure from the Middle East conflict. If contained, growth is projected to ease to 3.1% in 2026, with a slight recovery to 3.2% in 2027, while inflation may rise briefly before declining again. Emerging and developing economies are expected to feel the impact more sharply. The outlook remains skewed to the downside. Prolonged conflict, rising geopolitical tensions, weaker-than-expected AI productivity gains, or renewed trade frictions could further slow growth and disrupt markets. High public debt and weakening institutional credibility add to the risks, though easing trade tensions or stronger AI-led gains could provide some support. In this uncertain environment, resilience will depend on adaptive strategies, credible policies, and stronger global cooperation. global cooperation. While higher defence spending may boost short-term activity, it risks fuelling inflation, straining fiscal balances, and crowding out social investments.

Indian economy overview

Indias economy is expected to maintain a strong growth trajectory, with real GDP projected to expand by 7.6% in FY26, according to estimates by the Ministry of Statistics and Programme Implementation (MoSPI). This outlook underscores the countrys robust macroeconomic fundamentals despite prevailing global uncertainties. Nominal GDP, which incorporates price movements including inflation, is estimated to grow by 8.6% during the year, reflecting a balanced expansion in both economic output and price levels.

The growth momentum has been supported by consistent quarterly performance, with real GDP growth of 8.4% recorded in Q2 and 7.8% in Q3 (October-December), indicating resilience across key sectors of the economy. In recent years, India has sustained stable growth levels, with real GDP growth of 7.2% in FY2023-24 and 7.1% in FY2024-25. During the same period, nominal GDP growth stood at 11.0% and 9.7% respectively.

The manufacturing sector continues to play a pivotal role in driving economic expansion, registering double-digit growth, and reinforcing Indias position as a key industrial hub. This momentum has been further supported by

High public debt and weakening institutional credibility add to the risks, though easing trade tensions or stronger AI-led gains could provide some support. In this uncertain environment, resilience will depend on adaptive strategies, credible policies, and stronger global cooperation.

Year	Value
2019-20	7.01
2020-21	7.57
2021-22	15.69
2022-23	21.42
2023-24	22.13
2024-25	22.13
2025-26	23.16
2026-27	24.56

Source: https://www.indiabudget.gov.in/economicsurvey/doc/Infographics%20English.pdf
[PE - Provisional Estimates, FAE - First Advanced Estimates]

steady contributions from the secondary and tertiary sectors, reflecting the broad-based nature of the countrys economic growth.

Domestic demand continued to underpin Indias economic growth in FY26. According to the First Advance Estimates, the share of Final Private Consumption Expenditure (PFCE) in GDP increased to 61.5% during the year. The sustained strength in consumption reflects a supportive macroeconomic environment characterised by relatively low inflation, stable employment conditions, and improving real purchasing power. Rural consumption remained resilient, supported by strong agricultural performance, while urban consumption gradually improved, aided by the rationalisation of direct and indirect taxes. Together, these factors indicate that consumption-led growth remains broad-based across the economy.

Domestic demand continued to underpin Indias economic growth in FY26. According to the First Advance Estimates, the share of Final Private Consumption Expenditure (PFCE) in GDP increased to 61.5% during the year.

61.5%

The share of Final Private Consumption Expenditure (PFCE) in GDP is expected to increase to 61.5% in FY26.

In addition to consumption, investment activity continued to play a significant role in driving economic expansion during FY26. Gross Fixed Capital Formation (GFCF) is estimated to account for approximately 30.0% of GDP. Investment momentum strengthened during the first half of the fiscal year, with GFCF growing by 7.6% surpassing the pace recorded in the corresponding period of the previous year and remaining above the prepandemic average growth rate of 7.1%.

30%

Gross Fixed Capital Formation (GFCF) is estimated to account for approximately 30.0% of GDP.

The agriculture and allied sectors are estimated to grow by 3.1% in FY26. Agricultural performance during the first half of the fiscal year was supported by a favourable monsoon, leading to agricultural GVA growth of 3.6%, higher than the 2.7% growth recorded during the same period in FY25, though still below the long-term average of 4.5%. Allied activities, particularly livestock and fisheries, have demonstrated relatively stable growth in the range of 5-6%. With the increasing share of allied activities in agricultural

The agriculture and allied sectors are estimated to grow by 3.1% in FY26. Agricultural performance during the first half of the fiscal year was supported by a favourable monsoon, leading to agricultural GVA growth of 3.6%, higher than the 2.7% growth recorded during the same period in FY25

GVA, overall agricultural growth is increasingly shaped by the interplay between the relatively volatile crop segment and the more stable expansion in allied sectors.

3.1%

The agriculture and allied sectors are estimated to grow by 3.1% in FY26.

The industrial sector showed steady improvement in FY26, with manufacturing growing 8.4% in H1, surpassing the full-year estimate of 7.0%. Construction remained resilient, supported by strong public capex and infrastructure momentum. Manufacturings share in GDP held steady at 17-18%, with GVO at ~38%, comparable to services. Overall industrial growth is projected at 6.2% in

2025-26

FY26 (vs. 5.9% in FY25), with Q3 indicators such as PMI, IIP, and e-way bills reflecting strengthening demand. Construction indicators, including steel and cement consumption, also recorded stable growth. The outlook remains positive, supported by GST rationalisation and favourable demand conditions.

On the supply side, services continue to drive growth, with GVA expanding 9.3% in H1 FY26 and an estimated 9.1% for the full year. Growth was broad-based across segments, with most subsectors exceeding 9%, except trade, hospitality, and related services, which remain slightly below pre-pandemic levels.

Outlook

Indias economic outlook remains resilient, supported by strong macroeconomic fundamentals and broad-based demand. Real GDP and GVA are projected to grow by 7.4% and 7.3% respectively in FY26, driven by robust agricultural performance and improving urban consumption. Indias medium-term growth remains stable, with FY27 growth expected in the range of 6.8%-7.2%. Inflation has moderated significantly, with average headline inflation at 1.7% during April-December 2025, among the lowest levels recorded. The RBI has revised its FY26 inflation forecast to 2.0%, supported by favourable agricultural output, while IMF estimates remain moderate for FY26 and FY27. Looking ahead, inflation is expected to remain benign, providing a stable macroeconomic environment conducive to sustained economic growth and investment.

Indian MSME sector

The Micro, Small and Medium Enterprises (MSME) sector forms the backbone of Indias economic landscape, comprising a diverse spectrum of businesses that differ in scale, technology, and innovation. These enterprises are vital drivers of economic progress, contributing meaningfully to GDP, exports, employment generation, and balanced regional development. With the ability to produce over 6,000 products, MSMEs play a crucial role in meeting the countrys demand for mass consumption goods. Given its strategic significance, the sector holds immense potential to power sustained economic growth, provided it is supported by a conducive policy framework and focused developmental initiatives.

31.1% Indian MSME sectors contribution to Indian GDP

35.40% Indian MSME sectors contribution to Indias total manufacturing output

~48.58% Indian MSME sectors contribution to Indias total exports

~32.82 crore Number of people employed by the Indian MSME sector

~7.47 crore Number of registered enterprises in the Indian MSME sector

Budgetary outlay for the Indian MSME sector

The MSME sector continues to serve as a cornerstone of Indias economic architecture, driving structural transformation through decentralised industrialisation and broad-based growth. Contributing 31.1% to GDP and 35.4% to total manufacturing output, underscoring its pivotal role in strengthening domestic production capabilities. Beyond its economic contribution, MSMEs play a critical role in reducing regional disparities by anchoring local economies and fostering self-reliance. The sector also remains a key employment generator, providing livelihoods to over 32.82 crore individuals and acting as a vital instrument for socio-economic inclusion by empowering first-generation entrepreneurs and underserved communities.

MSMEs are increasingly emerging as engines of global competitiveness and innovation. Their integration into global value chains has significantly strengthened Indias export performance, with the sector contributing 48.55% to merchandise exports in FY25. This momentum is supported by targeted policy initiatives, including export promotion schemes and enhanced access to collateral-free credit.

The Micro, Small and Medium Enterprises (MSME) sector forms the backbone of Indias economic landscape, comprising a diverse spectrum of businesses that differ in scale, technology, and innovation. These enterprises are vital drivers of economic progress, contributing meaningfully to GDP, exports, employment generation, and balanced regional development.

Year	Budgetary Outlay (? in crore)
2019-20	7.01
2020-21	7.57
2021-22	15.69
2022-23	21.42
2023-24	22.13
2024-25	22.13
2025-26	23.16
2026-27	24.56

6 Hi-TECH PIPES CORPORATE OVERVIEW/ MANAGEMENT REPORT FINANCIAL STATEMENTS

Simultaneously, the rapid adoption of digital public infrastructure, such as ONDC, OCEN, and the Account Aggregator framework- is enabling greater formalisation, improved market access, and efficient credit delivery. MSMEs are also playing a growing role in advancing Indias sustainability and innovation agenda, adopting green technologies and contributing to strategic sectors like defence and deep-tech manufacturing. With continued policy support and technological integration, the sector is well-positioned to drive inclusive, sustainable, and innovation-led growth aligned with Indias long-term economic vision.

Key Budget takeaways for the Indian MSME Sector

The Union Budget 2026-27 places MSMEs at the centre of Indias growth strategy, adopting a structured three-pillar approach focused on equity, liquidity, and capability building. A landmark initiative is the introduction of a 10,000 crore SME Growth Fund, aimed at nurturing high-potential enterprises into globally competitive "champion MSMEs" by providing long-term growth capital.

To further strengthen access to risk capital, the government has proposed an additional allocation to the Self-Reliant India Fund, ensuring continued equity support for micro and small enterprises. Alongside this, enhanced liquidity measures, particularly through the mandatory integration of the Trade Receivables Discounting System (TReDS) for public sector procurement, are expected to improve cash flows and address delayed payment challenges.

The Budget also emphasises ease of doing business and compliance simplification,

The Union Budget 2026-27 places MSMEs at the centre of Indias growth strategy, adopting a structured three-pillar approach focused on equity, liquidity, and capability building. A landmark initiative is the introduction of a 10,000 crore SME Growth Fund, aimed at nurturing high-potential enterprises into globally competitive "champion MSMEs" by providing long-term growth capital.

with institutional support mechanisms such as "Corporate Mitras" to assist MSMEs, especially in Tier II and III markets. In a significant boost to exports, the removal of the 10 lakh cap on courier exports is set to expand global market access for small businesses, artisans, and startups.

Overall, the Budget signals a strategic shift from incremental support to building scale, competitiveness, and global integration, positioning MSMEs as key drivers of manufacturing growth, exports, and employment in Indias long-term economic vision.

Indian steel industry

The Indian steel industry delivered a resilient performance in FY26, reinforcing its position as the worlds second-largest steel producer, even as it navigated global uncertainties and pricing pressures. Supported by strong domestic demand and sustained infrastructure activity, the sector recorded healthy growth in production, consumption, and exports. Crude steel production rose to approximately 168 million tonnes in FY26, registering a strong 10.5% increase over ~152 million tonnes in FY25. This growth reflects continued momentum in capacity expansion, albeit at a more measured pace compared to the sharper uptick seen in the previous year, indicating a gradual shift towards more balanced and sustainable growth within the sector. Indias total steel capacity stood at approximately 220 million tonnes in FY26 and is projected to reach 300 million tonnes by 2030, supported by both public and private sector investments.

This increase was driven by ongoing capacity additions and stable utilisation levels among leading producers. However, the pace of production growth outstripped demand expansion, resulting in a widening gap. As a result, a portion of the additional output was either directed towards exports or absorbed into inventories, signalling evolving market dynamics within the sector. Capacity utilisation levels among leading producers remained stable, reflecting the industrys ability to scale efficiently.

Indian steel industry production and consumption

This growth was largely driven by capacity additions rather than a corresponding rise in demand, leading to a widening gap between production and domestic consumption. As a result, despite higher volumes,

Crude steel production rose to approximately 168 million tonnes in FY26, registering a strong 10.5% increase over ~152 million tonnes in FY25. This growth reflects continued momentum in capacity expansion, albeit at a more measured pace compared to the sharper uptick seen in the previous year.

Category	FY25	FY26	% Change
Crude Steel Production	152	168	10.5%
Finished Steel Production	148	163	10%
Steel consumption	152	164	8%
Finished Steel Exports	6.4	8.24	29%
Finished Steel Imports	10.1	7.8	-22.8%

Finished steel consumption in India continued to reflect strong underlying demand, reaching 164.2 million tonnes in FY26, marking an 8% year-on-year increase. This growth was largely driven by sustained momentum across infrastructure development, construction activity, and manufacturing expansion, sectors that remain central to the countrys economic progress. On a per capita basis, steel consumption rose to 100 kg, underscoring improving industrialisation and consumption patterns. With the National Steel Policy targeting 160 kg per capita consumption by FY31, the sector continues to offer significant headroom for long-term demand growth, supported by urbanisation, public capex, and rising consumption rates.

The India Steel Composite Index, a key indicator of domestic finished steel prices, averaged 132 in FY26, compared to 135 in FY25, reflecting a modest decline of 2.2% year-on-year. While the pace of correction was relatively moderate, suggesting some easing of import-led pressures, pricing conditions remained subdued during the year.

This trend was largely driven by a structural imbalance between rising supply and relatively slower demand absorption. Although lower imports and an improved trade balance offered partial support to domestic prices, these gains were not sufficient to fully counter the impact of elevated production levels and weak global price benchmarks. Overall, the

On a per capita basis, steel consumption rose to 100 kg, underscoring improving industrialisation and consumption patterns. With the National Steel Policy targeting 160 kg per capita consumption by FY31, the sector continues to offer significant headroom for long-term demand growth, supported by urbanisation, public capex, and rising income levels. pricing environment in FY26 remained challenging, with limited upside momentum. This underscores the need for stronger demand growth and better supply alignment to support a sustained recovery in steel realisations going forward.

Indias steel trade balance showed marked improvement in FY26. Finished steel exports rose by nearly 29% y-o-y, reaching 8.24 million tonnes, while imports fell by 22.8% y-o-y to 7.8 million tonnes. This shift brought India closer to becoming a net exporter of finished steel, supported by government safeguard duties and narrowing price gaps with global markets. The export momentum was particularly strong in long products, while imports of 2.3% to 65 million tonnes, while imports rose by 9.1% to 84 million tonnes. This trend underscores Indias continued dependence on imports to meet rising steel demand.

Indias steel ecosystem continues to evolve, with raw material dynamics reflecting both structural strengths and inherent dependencies. While domestic production has improved across key inputs, the sector still navigates supply gaps and import reliance, particularly in critical materials such as coking coal.

Iron ore

Iron ore production rose by 6.2% year-on-year to 307 million tonnes in FY26. However, this growth did not fully keep pace with the rapid expansion in steel output. As a result, exports declined by 13.3% to 26 million tonnes, while imports surged sharply by 92.3% to 12.5 million tonnes.

This shift reflects a growing imbalance between domestic availability and industry demand, prompting increased reliance on imported ore to support production requirements. While India remains resource-rich, ensuring consistent and quality supply will be critical to sustaining long-term steel growth.

Coal

Coking coal, a vital input for blast furnace-based steelmaking, continues to be a structural constraint. Domestic production declined marginally by

In contrast, thermal coal dynamics present a more stable picture. Imports declined by 5.3% to 160 million tonnes, supported by steady domestic production. This divergence highlights a gradual improvement in energy security for thermal coal, even as coking coal dependency remains a key vulnerability for the steel industry.

Scrap

Scrap availability in India witnessed a strong increase of 24.5% year-on-year, reaching 31.5 million tonnes, supported by policy interventions and improved collection and processing infrastructure. At the same time, scrap imports declined by 12.4% to 8.5 million tonnes, indicating a growing shift towards domestic sourcing.

This trend is particularly significant as it supports the expansion of the electric arc furnace (EAF) route, which is more energy-efficient and environmentally sustainable. The increasing availability of scrap signals a gradual but important transition towards a circular and low-carbon steel ecosystem, aligning with Indias broader sustainability ambitions.

The evolving raw materials landscape reflects a dual narrative, while improvements in domestic scrap availability and thermal coal supply are strengthening the ecosystem, continued dependence on imported coking coal and rising iron ore imports highlight structural challenges.

Going forward, enhancing domestic resource efficiency, strengthening supply chains, and accelerating the shift towards scrap-based steelmaking will be critical to building a resilient, cost-efficient, and sustainable steel industry.

Key growth drivers

Infrastructure and government capital expenditure

Government-led infrastructure investment remains the single most powerful demand anchor for Indian steel. The Union Budget 2026-27 allocated approximately USD 147 billion to public capital expenditure across highways, urban metro networks, ports, airports, and smart city development. The Make in India initiative and PLI schemes are lifting steel intensity across downstream manufacturing. Bharatmala Phase-II and PMAY (Urban) 2.0 alone are expected to generate over 30 million tonnes of incremental annual steel demand once fully mobilised.

Construction and real estate

Building and construction accounted for over 51% of finished steel consumption in FY25 and is projected to expand at a CAGR of Construction and real estate

Building and construction accounted for over 51% of finished steel consumption in FY25 and is projected to expand at a CAGR of approximately 9.84% through 2031. Accelerating urbanisation, the affordable housing push, and rising commercial activity, particularly in Tier-2 and Tier-3 cities, are generating consistent demand for rebars, TMT bars, and structural steel. Increasing participation of organised developers is also creating more predictable procurement cycles for long products.

Railways and logistics infrastructure

Indian Railways continues to be a significant and growing consumer of steel, absorbing rising volumes of structural sections, track components, wagons, and fabricated assemblies as it pursues one of the most ambitious network modernisation programmes in its history. The National Infrastructure Pipelines strong focus on rail expansion, multimodal logistics parks, and port connectivity is expected to sustain elevated steel offtake from this sector well into the latter part of the decade.

Renewable energy

Renewable energyThe energy transition is rapidly becoming a structural steel demand driver in its own right. Solar installations, wind towers, transmission line towers, and grid interconnection infrastructure require significant volumes of galvanised steel, structural sections, and coated flat products. With India targeting 500 GW of non-fossil energy capacity by 2030, having already crossed 220 GW, annual steel offtake from this segment is expected to be among the fastest-growing of any end-use category.

Automotive and electric vehicles

Indias automotive sector delivered record sales in FY26, with every major vehicle category achieving all-time high annual volumes. This momentum is translating into robust demand for HR coils, CR coils, coated steel, and advanced high-strength steel. The shift toward electric mobility is adding a further layer of demand for specialised flat and coated products, with automotive OEMs increasingly co-investing with domestic steelmakers in specialty coating lines, a trend expected to significantly reduce import dependence by 2028.

Defence and aerospace

Defence and aerospaceIndias expanding defence manufacturing ecosystem is emerging as a meaningful source of steel demand. Domestic defence production reached a record 71,50,590 crore in FY25, up 90% since FY20, and the government is targeting 3 lakh crore in annual production by 2029. Demand for specialised steel including high-grade plates, forgings, and precision castings is set to rise materially, supported by dedicated defence corridors in Uttar Pradesh and Tamil Nadu.

Oil, gas, and water pipeline infrastructure

The "One Nation, One Gas Grid" initiative and Jal Jeevan Mission 2.0 are generating sustained demand for steel pipes and pipeline products across the country. The expansion of city gas distribution networks, cross-country gas transmission pipelines, and rural water supply infrastructure is creating a robust and geographically diversified order base, one that is expected to deepen further as global data centre investments and the growth of GCCs in India add incremental structural steel and piping demand.

Outlook

OutlookLooking ahead, the Indian steel industrys prospects are shaped by both opportunities and risks. On the positive side, government-backed infrastructure projects and tariff reductions are expected to drive demand. However, the rapid pace of capacity expansion risks outstripping consumption, potentially limiting profitability. Global headwinds, such as weak demand, geopolitical tensions, and rising energy costs, add

Indias expanding defence manufacturing ecosystem is emerging as a meaningful source of steel demand. Domestic defence production reached a record 1,50,590 crore in FY25, up 90% since FY20, and the government is targeting 3 lakh crore in annual production by 2029.

Green Steel - An Emerging Imperative for the Steel Industry

The Indian steel industrys transition towards greener production methods is no longer a distant aspiration, it is rapidly becoming a commercial and regulatory reality with direct implications for steel pipe and MS pipe manufacturers. As a downstream consumer of steel, the Companys raw material supply chain is intrinsically linked to how Indias primary steel producers navigate this transition. Green steel, produced through low-carbon routes such as scrap-based Electric Arc Furnaces (EAF) powered by renewables or hydrogen-based Direct Reduced Iron (DRI) processes, offers emissions reductions of up to 88-97% compared to conventional blast furnace production, and is increasingly being specified by infrastructure and industrial buyers as part of their own sustainability commitments.

Demand for green steel in India, while nascent, is on a clear upward trajectory. Industry estimates project green steel consumption to reach 4.49 million tonnes by FY30, with the governments Green Public Procurement (GPP) policy expected to mandate a minimum 5% green steel content in government-funded projects from FY28, scaling to 15% by FY31. For a pipe manufacturer serving water infrastructure, urban development, oil and gas, and industrial segments, all of which are heavily government-procured sectors, this policy shift is consequential. Companies that proactively align their procurement and product specifications with green steel standards will be better positioned to qualify for emerging public tenders and maintain long-term supply chain credibility.

At the same time, the cost dynamics of green steel are evolving favourably. The current price premium of approximately USD 210 per tonne over conventional steel is expected to narrow sharply to around USD 7 per tonne by FY30, as technology matures and economies of scale improve. Alongside this, the EUs Carbon Border Adjustment Mechanism (CBAM), which came into force in 2026, is beginning to reshape global steel trade flows, incentivising Indian producers to accelerate decarbonisation. The Company is actively monitoring these developments and remains committed to engaging with steel suppliers who are investing in lower-emission production routes, ensuring that our product portfolio stays aligned with the evolving sustainability expectations of our customers, financiers, and regulators.

5.8% from 2024.further uncertainty. To ensure long-term sustainability, the industry must focus on aligning capacity with demand, reducing raw material import dependence, and embracing sustainable production practices. While the outlook remains cautiously optimistic, profitability recovery will depend on demand growth rather than supply-driven expansion.

Overview of the Indian Steel Pipes and Tubes Industry

Indias steel pipes and tubes industry has emerged as one of the most consequential downstream segments of the broader steel value chain, one where the countrys infrastructure ambitions, energy transition, and water security imperatives converge into a single, multi-decade demand story. The India steel pipes market reached 13.56 million tonnes in 2024 and is projected to reach 27.76 million tonnes by 2033, growing at a CAGR of 7.65% through the period, driven by infrastructure development, expanding oil and gas projects, rising exports, and ongoing advancements in manufacturing and sustainability. In revenue terms, the market is expected to reach USD 17,599 million by 2030, growing at a CAGR of

FY26 marked a year of meaningful recovery and demand consolidation for the sector. Early results from key industry players indicated a 20-30% revenue growth in FY26, aided by improving project execution and margin normalisation as raw material prices stabilised. Ductile iron pipe demand remained particularly robust, driven by the Jal Jeevan Mission and urban water projects, with demand in some states significantly outpacing available supply. Example: Maharashtra, for instance, witnessed DI pipe demand of approximately 7 lakh tonnes against available supply of around 4 lakh tonnes. The broader ERW and MS pipe segments also saw a moderate uptick, driven by government-funded metro, utilities, and housing projects as infrastructure funding flows accelerated through the second half of the year.

The competitive landscape is evolving alongside growth. Players with regional manufacturing footprints, lean inventory practices, flexible product portfolios spanning ERW, DI, and value-added products, and strong working capital management are expected to remain better positioned as new capacities enter the market. The sector is also witnessing a gradual shift toward premium and specialised products, seamless pipes for oil and gas, high-pressure tubes for industrial applications, and certified green steel-based pipes for sustainability-conscious procurement, reflecting the deepening sophistication of both buyers and end-use applications.

Different segments of Indian steel pipes & tube industry

Types of pipes	Key application areas
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
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

Key Growth Drivers

Water infrastructure - Jal Jeevan Mission 2.0

The single most powerful demand catalyst for the Indian pipe industry. In March 2026, the Union Cabinet approved the extension of the Jal Jeevan Mission as JJM 2.0 through December 2028, with a total outlay of Rs. 8.69 trillion, including Rs. 3.59 trillion of central assistance, aimed at ensuring 100% functional tap water connections for all 194 million rural households. This commitment sustains a multi-year, geographically distributed demand pipeline for ERW, HSAW, and DI pipes that few other government programmes can match in scale. Urban water infrastructure schemes such as AMRUT further reinforce this pipeline, creating parallel demand from city-level utilities and municipal bodies.

Oil, gas, and energy infrastructure

Indias accelerating push for energy self-reliance is a structural tailwind for large-diameter and seamless pipe manufacturers. The One Nation, One Gas Grid initiative is expanding the countrys natural gas transmission backbone and city gas distribution networks, while rising investments in oil exploration and refinery capacity are sustaining demand for high-specification seamless and welded pipes. Domestic power plant capacity, spanning thermal, nuclear, and renewable sources, continues to expand, with approximately 5% of total capital expenditure invested in a power plant directed toward steel pipes and tubes, creating a reliable and recurring demand stream from the energy sector.

Infrastructure and construction

Government capital expenditure on roads, highways, metro rail, ports, and smart cities continues to be a consistent demand driver for structural and ERW steel pipes. Rising demand across the construction and manufacturing sectors, combined with supportive government policies aimed at boosting industrial development, is propelling steel pipe demand across the country. The housing sector, through PMAY (Urban) 2.0 and private real estate activity, is also contributing to growing consumption of structural hollow sections and plumbing-grade tubes, particularly as organised developers bring larger, more steel-intensive projects to market.

In March 2026, the Union Cabinet approved the extension of the Jal Jeevan Mission as JJM 2.0 through December 2028, with a total outlay of Rs. 8.69 trillion, including Rs. 3.59 trillion of central assistance, aimed at ensuring 100% functional tap water connections for all 194 million rural households.

Exports and global competitiveness

Indias pipe manufacturers are steadily building a more formidable global export presence. Saudi Arabias imposition of anti-dumping duties on Chinese and Taiwanese steel pipe imports provided Indian exporters, a meaningful competitive tailwind, redirecting global procurement toward Indian manufacturers with established quality credentials. India also extended antidumping duties on Chinese stainless steel tubes, protecting the domestic market while enabling manufacturers to invest in capacity and certification for export growth. As Indian producers improve quality standards, international accreditations, and delivery reliability, they are gaining traction across the Middle East, Europe, and Southeast Asia.

Renewable energy and the green economy

The renewable energy transition is generating a distinct and growing demand stream for steel pipes. Solar mounting structures, wind tower components, transmission line infrastructure, and grid interconnection projects all require substantial volumes of structural and coated steel pipe products. Manufacturers are also responding to growing demand for galvanised and epoxy-coated steel pipes, which offer superior corrosion resistance and longer service lives, reflecting a broader market shift from price-driven procurement toward total cost of ownership. As India accelerates toward its target of 500 GW of non-fossil energy capacity by 2030, this demand stream is expected to deepen materially.

Premiumisation and product upgradation

Across segments, the market is witnessing a structural shift toward higher-specification, value-added pipe products. Growing demand for seamless steel pipes in oil and gas and infrastructure applications, advances in manufacturing technology, and increasing sustainability requirements are driving manufacturers to invest in product innovation and process efficiency. Quality Control Orders, mandatory BIS certifications, and evolving procurement specifications, particularly for government projects, are raising the bar for market participation, favouring established manufacturers with scale, quality systems, and technical capability.

Hi-Tech Pipes Limited (Hi-Tech Pipes) has spent nearly four decades in building what is today one of Indias most diversified and strategically scaled steel pipes and tubes manufacturing entities. From its origins as an ERW steel pipe manufacturer, the Company has evolved into a comprehensive steel solutions enterprise, serving infrastructure, construction, railways, defence, highways, and renewable energy markets into a capex-backed, export-leveraged growth story, one that is attracting institutional capital and strategic capacity investments in equal measure. Companies that invest in product quality, downstream value addition, geographic diversification, and export market development will be well placed to capture a disproportionate share of the decades significant opportunity.

Outlook

The outlook for the Indian steel pipes and tubes industry is firmly positive and structurally anchored. The confluence of water infrastructure programmes, gas grid expansion, renewable energy construction, housing development, and rising export demand creates a demand environment that is broad-based, policy-supported, and durable across market cycles. What began as a raw material-driven margin play has now evolved into a capex-backed, export-leveraged growth story, one that is attracting institutional capital and strategic capacity investments in equal measure. Companies that invest in product quality, downstream value addition, geographic diversification, and export market development will be well placed to capture a disproportionate share of the decades significant opportunity.

Company overview

Founded in 1985 and headquartered in New Delhi, Hi-Tech Pipes Limited (Hi-Tech Pipes) has spent nearly four decades in building what is today one of Indias most diversified and strategically scaled steel pipes and tubes manufacturing entities. From its origins as an ERW steel pipe manufacturer, the Company has evolved into a comprehensive steel solutions enterprise, serving infrastructure, construction, railways, defence, highways, and renewable energy markets through a diversified portfolio of over 1,700 SKUs. These include ERW steel pipes, hollow sections, cold rolled coils and strips, GP/GC sheets, color-coated coils, road crash barriers, solar mounting structures and torque tubes, the last of which has opened a new frontier for the Company in global renewable energy markets across North America, Europe, and the Middle East. structures and other value-added steel products catering to a wide spectrum of end-use industries.

Driven by a clear long-term vision and an unwavering focus on quality, Hi-Tech Pipes has built a robust manufacturing ecosystem supported by strategically located facilities, advanced technologies and an expanding distribution network. Its diversified product portfolio includes ERW steel pipes, galvanised pipes, hollow sections, colour-coated coils, crash barriers, solar mounting structures and other value-added steel products catering to a wide spectrum of end-use industries.

The Companys growth journey has been anchored in operational excellence, capacity expansion and continuous product innovation. With a strong emphasis on backward integration, process optimisation and sustainability-led manufacturing, Hi-Tech Pipes continues to enhance efficiencies while strengthening its competitiveness in a dynamic market environment. As India accelerates investments in infrastructure, housing, renewable energy, water management and industrial development, Hi-Tech Pipes remains well-positioned to capitalise on emerging opportunities. Supported by a customer-centric approach, strong execution capabilities and an expanding market footprint, the Company continues to contribute meaningfully to the nations growth story while creating long-term value for all stakeholders.

Operational overview

FY26 was a landmark year by every measure. The Company achieved its highest-ever annual sales volume of 5,32,437 MT, a 10% increase over the previous year. Further, the Company successfully commissioned its one-millionth tonne of installed capacity with the operationalisation of the Sikandrabad Unit-III greenfield facility, taking total consolidated capacity to 10,50,000 MTPA across eight strategically located manufacturing facilities in

Hi-Tech Pipes remains well-positioned to capitalise on emerging opportunities. Supported by a customer-centric approach, strong execution capabilities and an expanding market footprint, the Company continues to contribute meaningfully to the nations growth story while creating long-term value for all stakeholders.

2025-26

Uttar Pradesh, Gujarat, Andhra Pradesh, Maharashtra, and Jammu & Kashmir. The share of value-added products in the revenue mix has grown from 20% in FY23 to approximately 39% in FY26, a strategic move that has helped the Company strengthen its EBITDA per tonne to 3260 compared to 3297 in FY25. With a debt-to-equity ratio of 0.18x, an upgraded A+ credit rating, a distribution network spanning 550+ dealers across 20+ states, and a clear roadmap towards two million tonnes of capacity by FY2029, Hi-Tech Pipes enters the next chapter of its growth from a position of uncommon operational and financial strength.

SWOT Analysis

STRENGTHS

Scale and manufacturing depth

We have achieved one of our most defining strategic milestones in FY26, one million tonnes of installed capacity across seven integrated manufacturing facilities in Uttar Pradesh, Gujarat, Andhra Pradesh, Maharashtra, and Jammu & Kashmir. This scale allows us to service large infrastructure orders that smaller peers cannot, while our geographically distributed footprint keeps logistics costs competitive across Indias three most economically active regions.

A portfolio shifting decisively towards higher value

Our deliberate pivot from commodity ERW pipes to value-added products, solar torque tubes, hollow sections, colour-coated coils, crash barriers, and galvanised products, has reshaped our margin profile. The share of value-added products in our revenue mix has grown from 20% in FY23 to approximately 40% in FY26, with a clear target of 50% in the near term. Our solar torque tubes, now exported across North America, Europe, and the Middle East, signal that we are competing on engineering quality, not price alone.

Financial discipline and balance sheet strength

Our debt-to-equity ratio stands at 0.18x, our credit rating has been upgraded to A+ and FY26 delivered our highest-ever annual sales volume of 5,32,437 MT alongside a record PAT of 76.58 crore in FY26. Strategic raw material MOUs with SAIL, ArcelorMittal, Tata, and NMDC provide us with procurement stability and cost predictability through business cycles.

WEAKNESSES

Margin exposure to steel price volatility

Our profitability remains exposed to fluctuations in hot-rolled coil prices, our primary input. In Q3 FY26, a 2,500 per tonne decline in steel prices led to a 9% drop in consolidated PAT despite 40% revenue growth, a stark illustration of how sharply input cost movements can decouple our profit performance from volume momentum. The governments safeguard duty has provided near-term relief, but this structural vulnerability requires continued attention.

Execution risk across parallel expansions

Our ambition to reach two million tonnes by FY2029 demands the simultaneous commissioning of multiple projects, while ramping up recently commissioned facilities at Sikandrabad, Sanand Phase II, and Kathua. Managing capital deployment, vendor relationships, and quality standards across this level of concurrent complexity requires disciplined governance that we are firmly committed to maintaining.

Return on equity has room to improve

Return on equity has room to improveOur FIVE-year CAGR average return on equity of approximately 11.11%, while improving, reflects the capital-intensive expansion phase we have been navigating. As our new capacity reaches fuller utilisation and our value-added product mix deepens, we expect this metric to strengthen materially, closing the gap with more capital-efficient peers in our sector.

OPPORTUNITIES

Indias Infrastructure Supercycle

Government programmes, PM Gati Shakti, the National Infrastructure Pipeline, Jal Jeevan Mission, and Smart Cities, are generating broadbanded, multi-year demand across nearly every product category in our portfolio. With our manufacturing facilities positioned in close proximity to Indias most active infrastructure corridors, we are structurally placed to capture a meaningful share of this demand cycle for the foreseeable future.

Renewable energy - a global growth vector

Indias 500 GW renewable energy target by 2030, combined with surging global solar infrastructure investment, is creating a significant demand for our mounting structures and solar torque tubes. We are actively serving this opportunity domestically and through exports to North America, Europe, and the Middle East, with a clear management target of growing exports to 10% of our total volumes, a milestone that will meaningfully diversify our revenue base.

Defence and specialised infrastructure

Our participation in defence-linked programmes, including the Kavach anti-collision system and BSF border fencing, has opened a promising, high-specification segment defined by quality requirements rather than price competition. As Indias defence indigenisation deepens and institutional procurement expands, we see a compelling opportunity to build a more meaningful position in this segment over the medium term.

Technology and digital capability

Our acquisition of Sain Software Systems in March 2026 represents our deliberate investment in digital and operational technology capability, an acknowledgement that data analytics, supply chain digitisation, and technology-enabled decision-making will be as important as physical capacity in determining competitive advantage in our next phase of growth.

THREATS

Global steel dumping and import pressure

Low-cost steel imports, particularly from China and other Asian producers, remain a persistent structural threat to our realisations. While the governments safeguard duty introduced in December 2025 has provided near-term relief, such measures are time-bound. Any easing of import restrictions could rapidly compress margins, particularly in our commodity-grade pipe segments.

Geopolitical and trade uncertainty

The US reciprocal tariff announcement of April 2026 has introduced uncertainty into global trade flows. While a finalised US-India trade deal is expected to benefit our exports, its timeline remains unclear. Our growing export revenues, particularly from solar torque tubes to North American and European markets, carry inherent geopolitical exposure that we continue to monitor and manage actively.

Intensifying competitive landscape

Our larger peers continue to invest aggressively in capacity, branding, and distribution. Narrowing the gap in brand equity and retail reach will require sustained investment in marketing and dealer engagement from our side, a commitment we are making, even as new private sector entrants add supply-side pressure across the sector.

Dependence on infrastructure and construction cycles

A significant proportion of our demand is driven by infrastructure and construction activity, segments sensitive to government capital expenditure cycles, monsoon patterns, and interest rates. Any sustained moderation in public infrastructure spending or a slowdown in real estate activity would have a disproportionate impact on our core volumes, making revenue diversification, through exports, defence, and renewables, an ongoing strategic priority for us.

Financial review

Revenue from operation achieved during FY26 was 4200 crores, as against 3067 crores in the previous year, registering 37% year-on-year growth. Profit before tax (PBT) was recorded at 101 crores against 98 crores during the previous year. Profit after tax (PAT) for the year stood at 76 crores against 73 crores in the previous year. EBITDA grew by 8% YoY to 174 crores in FY2026, compared to 160 crores in FY2025.

Total borrowings of Hi-Tech Pipes as of March 31, 2026 stood at 267 crores vis-?-vis 199 crores as on March 31, 2025.

Financial performance summary

Particulars	Unit	FY2022	FY2023	FY2024	FY2025	FY2026	5Yr.CAGR
Net Sales	Rs. Crore	1878.85	2385.85	2700.47	3069.52	4,202.66	22.30%
EBIDTA	Rs. Crore	100.50	103.21	114.86	160.03	173.55	14.63%
PBT	Rs. Crore	55.30	49.88	58.69	97.99	101.47	16.39%
PAT	Rs. Crore	40.30	37.79	44.03	72.86	76.16	17.25%
EPS	Per/Share	3.38	3.06	3.25	3.98	3.77	2.77%
Net Worth	Rs. Crore	258.60	418.11	576.37	1257.35	1,333.48	50.69%
Sale Volume*	(in Lacs M.T.)	2.77	3.54	3.91	4.85	5.32	17.75%
Earnings in Per Metric Ton (PMT)
EBIDTA	Rs. PMT	3,634	2915	2936	3297	3,260
PAT	Rs. PMT	1,458	1064	1126	1501	1,438
Financial Ratios in
EBIDTA (%)		5.35%	4.33%	4.25%	5.21%	4.13%
PBT (%)		2.94%	2.09%	2.17%	3.19%	2.41%
PAT (%)		2.15%	1.58%	1.63%	2.37%	1.82%
ROI/ROCE (%)		16.30%	11.92%	13.70%	14.35%	11.11%
ROE (%)		17.40%	11.17%	8.85%	7.95%	5.91%
Growth Type
Sales Value Growth (%)		40.00%	26.98%	13.14%	13.65%	36.92%
Sales Volume Growth (%)		2.00%	27.80%	10.48%	24.11%	9.68%
Ratio in Times
Debt/EBIDTA		3.48	2.47	3.18	1.12	1.39
TOL/TNW		1.97	1.19	1.05	0.40	0.52
Debt Equity		1.42	0.66	0.70	0.15	0.18
Current Ratio		1.43	1.46	1.54	2.38	2.17
Turnover Ratios in Number of Days (NoDs)
Debtor Turnover	NoDs	33	28	38	36	39
Inventory Turnover	NoDs	50	47	47	46	49

Risk management

A thorough risk-management framework allows us to preemptively 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 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 riskmanagement 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.

Financial market risks:

Fluctuations in interest rates, liquidity conditions and broader financial markets can impact the Companys cost of capital, working capital cycle and access to competitive financing. Hi-Tech Pipes manages these risks through prudent financial management, disciplined capital allocation and diversified funding arrangements. The Company continues to maintain strong relationships with banks and financial institutions, enabling timely access to funds at competitive terms while supporting long-term expansion plans.

Industry and macroeconomic risks:

The steel pipes and tubes industry remains closely linked to macroeconomic conditions, infrastructure spending, construction activity and industrial demand. Any slowdown in economic growth, volatility in steel demand, or changes in regulatory policies may influence the Companys performance and investment outlook. To navigate such uncertainties, Hi-Tech Pipes continues to focus on operational agility, product diversification, and market expansion, enabling the Company to respond effectively to changing industry dynamics while sustaining growth momentum.

Foreign exchange risks:

With growing participation in export markets and dependence on certain imported inputs, the Company remains exposed to fluctuations in foreign exchange rates. Variations in currency movements may impact procurement costs and export realisations. HiTech Pipes manages this exposure through a balanced approach that includes natural hedging, continuous monitoring of currency trends and prudent treasury practices in line with regulatory guidelines.

Our risk management process

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

Direct cost risks:

Volatility in raw material prices, particularly HR coils and other steel inputs, along with fluctuations in energy and logistics costs, can affect operating margins. The Company continuously monitors market trends and adopts calibrated procurement and inventory strategies to minimise the impact of such fluctuations. Its focus on operational efficiencies, value-added products, and process optimisation further supports margin stability in a cyclical industry environment.

Legal and regulatory risks:

As a growing manufacturing enterprise, Hi-Tech Pipes operates within a dynamic regulatory framework covering corporate governance, taxation, environmental norms, and industry-specific compliances. Any changes in laws, duties, or regulatory policies may impact business operations and profitability. The Company addresses these risks through a strong compliance culture, robust internal controls and continuous monitoring of regulatory developments to ensure adherence across all operational locations.

Environmental and sustainability risks:

Manufacturing operations are subject to evolving environmental standards and sustainability expectations. Increasing focus on emissions, resource efficiency and responsible manufacturing practices may influence operational costs and compliance requirements. Hi-Tech Pipes remains committed to sustainable growth through energy-efficient operations, responsible resource management and adherence to applicable environmental regulations, while continuing to strengthen its ESG-led initiatives across facilities.

Hi-Tech Pipes manages these risks through prudent financial management, disciplined capital allocation and diversified funding arrangements. The Company continues to maintain strong relationships with banks and financial institutions, enabling timely access to funds at competitive terms while supporting long-term expansion plans.

Growing cybersecurity threats and increasing dependence on digital infrastructure necessitate robust IT safeguards. Hi-Tech Pipes continues to strengthen its cybersecurity framework, upgrade digital capabilities and enhance system controls to ensure data security, operational continuity, and efficient decision-making across the organisation.

Human resource risks:

The Companys growth and operational excellence are inter-linked to its ability to attract, develop and retain skilled talent across functions. Increasing competition for experienced professionals and technical manpower may pose challenges in a rapidly expanding manufacturing sector. Hi-Tech Pipes continues to invest in employee development, workplace safety, leadership building, and performance-driven practices to foster a motivated and future-ready workforce.

Information technology risks:

Digital systems and technology platforms play a critical role in supporting the Companys manufacturing, supply chain and business operations. Growing cybersecurity threats and increasing dependence on digital infrastructure necessitate robust IT safeguards. Hi-Tech Pipes continues to strengthen its cybersecurity framework, upgrade digital capabilities and enhance system controls to ensure data security, operational continuity, and efficient decision-making across the organisation.

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 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 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 2026, we are proud to have over 550+ dedicated 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

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.

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.