Jindal Saw Ltd Management Discussions

1. Economic Overview

i) Global Economic Overview

The global economy appears to have stabilised, showing steady and well above recession levels, yet underwhelming growth rates, amid escalating trade-war tensions fuelled by US-imposed tariffs and global uncertainty.

The International Monetary Fund ("IMF") has projected global growth to moderate to 2.8% in 2025 and 3.0% in 2026, sharply lower than the 3.3% projected for both years in its January 2025 update. The IMF attributes this slowdown to factors like escalating trade tensions and increased political uncertainty. This highlights how critical a phase the global economy is currently passing through. Just as the world economy looked like stabilising following a series of shocks in the preceding years, it has been dealt a severe blow with the United States unilaterally announcing tariffs on major trading partners and critical sectors, bringing effective tariff rates to levels not seen in a century.

The escalation of trade tensions and extremely high levels of policy uncertainty are expected to have a significant impact on global economic activity, though it remains unclear how the tariff war will evolve.

Given the complexity of the situation, the International Monetary Funds World Economic Outlook has made a "reference forecast" based on information available as of April 4. The growth estimate for 2024 and the forecast for 2025 and 2026 are sharply lower than historical average of 3.7% for the period 2000-2019. The global economy is estimated to have grown 3.3% in 2024.

IMF has cut its forecast for growth in advanced economies by 50 basis points to 1.4% in 2025 and in the US by 90 basis points to 1.8% in 2025 on account of the policy uncertainty, trade tensions, and softer demand momentum. The growth forecast for the euro area has been cut by 20 basis points to 0.8%. In emerging market and developing economies, growth is expected to slow down to 3.7% in 2025 and 3.9% in 2026, with significant downgrades for countries affected most by the tariff measures, especially China. The growth China, which has been at the receiving end of the US administration on tariff, is likely to be 4.0% each in 2025 and 2026, down 60 basis points and 50 basis points, respectively, from the previous forecasts.

The growth outlook for India seems relatively more stable at 6.2% in 2025-26 and 6.3% in 2026-27, down 30 basis points and 20 basis points, respectively from the earlier forecasts. India is relatively less affected largely due to private consumption, particularly in rural areas, IMF said.

Besides the reference forecast, IMF has also made a pre-April 2 (before the announcement of tariffs by the US) forecast and a post-April 9 (after the announcement of 90-day pause on reciprocal tariffs) forecast. Under the pre-April 2 forecast, the global growth is projected at 3.2% for both 2025 and 2026, lower by 10 basis points in each year from earlier projections. Under the post-April 9 forecast, global growth for 2025 would be about 2.8% for 2025 and about 2.9% for 2026.

The global outlook on growth is dominated by intensifying downside risks, according to the IMF. Some economists are even warning of a possible recession in the US because of the trade war. Even as escalation of the trade war has dampened both near- and long-term growth, the eroded policy buffers can weaken the resilience to future shocks, according to IMF. The rapidly shifting policy stances and deteriorating sentiment could trigger additional repricing of assets beyond what took place immediately after the announcement of the sweeping US tariffs.

These global developments come against the backdrop of an already cooling economic momentum. Recent data on economic activity have been disappointing, with GDP growth in the fourth quarter of 2024 trailing forecasts. High-frequency indicators such as retail sales and purchasing managers surveys also point to slowing growth. The US consumer, business, and investor sentiment, which was optimistic at the beginning of the year, has recently shifted to a notably more pessimistic stance as uncertainty has taken hold.

The progress on disinflation has mostly been stalled, and inflation has edged upward in some cases, with an increasing number of countries exceeding their inflation targets. The tariffs are expected to mount these pressures and will put a question mark on future monetary easing by the US Federal Reserve.

Trade has held up, but this is mostly because of an increase in Chinese exports and US imports at the end of 2024, with businesses likely front-loading ahead of tariffs. The IMF has projected global trade growth to slow down in 2025 to 1.7%, a downward revision of 150 basis points from the earlier forecast. The forecast reflects increased tariff restrictions affecting trade flows and the waning effects of cyclical factors that have underpinned the recent rise in goods trade

Outlook

Particulars	Estimate (%)	Projections (%)
	2024	2025	2026
World Output	3.3	2.8	3.0
Advanced Economies	1.8	1.4	1.5
Emerging Market and Developing Economies	4.3	3.7	3.9
India	6.5	6.2	6.3

ii) Indian Economic Overview

According to the National Statistical Office, the growth in Indian economy is projected to moderate to 6.5% in 2024-25 from a two-year high of 9.2% in 2023-24. The slowdown is primarily on account of the statistical effect of a high base. The GDP grew 6.1% in Apr-Dec compared with 9.5% in the same period a year ago. In the first nine months of the financial year, quarterly growth ranged between 5.6% and 6.5% compared with 9.3% and 9.7% a year earlier.

The Indian economy has remained reasonably resilient despite the global headwinds. Indias growth seems to have improved a weak first half of the financial year. The GDP growth in Oct-Dec rose to 6.2% from a seven-quarter low of 5.6% in Jul-Sep, supported by improved government and private consumption. The projected GDP growth of 6.5% for the whole year, implies a GDP growth of 7.6% in Jan-Mar.

Rural demand remains strong, even as urban consumption gradually recovered due to an increase in discretionary spending. Investment activity has gained traction and is expected to improve further on the back of sustained higher capacity utilisation, the governments continued thrust on infrastructure spending, healthy balance sheets of banks and corporate sector and the easing of financial conditions.

Indias composite Purchasing Managers Index rose to 59.5 in March, marking a seven-month high. Despite the slowdown on international trade, merchandise exports rose marginally to $437.4 billion in 2024-25 from $437.1 billion a year ago. The overall exports, including service exports, is projected to grow 5.5% to $820.9 billion in 2024-25. Indias foreign exchange reserves have risen to $686.15 billion as on April 18, increasing $45.81 billion from a year ago.

Inflation has remained below the Reserve Bank of Indias medium-term target of 4% in February and March. Benign inflation, the challenging global economic conditions and moderate domestic growth have meant that the RBI is leaning more on growth. The RBI has cut the policy repo rate by 50 basis points to 6.00% since February and changed the policy stance to accommodative, providing more room for rate cuts in the coming months.

The Budget for 2025-26 has proposed a development strategy focussed on four engines of growth - agriculture, MSME, investment and exports. The Budget has also provided a major push to domestic consumption by exempting annual income up to 12 lakh from income tax and revising tax slabs across the board.

The higher disposable incomes to middle class, the rate cuts, the accommodative monetary policy and the enhanced liquidity in the banking system, is expected to boost growth in times of external uncertainties. The focus of the Budget on longer- term development drivers and reforms, anchored around the ambition of Viksit Bharat, adds to the confidence in domestic economic resilience.

Outlook

The global uncertainties emanating from the global trade frictions is likely to dampen the prospects for Indian economy in 2025-26. The Reserve Bank of India has cut its forecast on growth in the Indian economy in 2025-26 to 6.5% from 6.7% earlier, with quarterly growth rates ranging from 6.3-6.7%. The forecast of an above normal southwest monsoon and looser monetary policy will augur well for the Indian economy.

India has been proactively engaging with the US on tariffs and is likely to be the first country to sign a bilateral trade deal to avoid reciprocal tariffs. India will continue to be the fastest-growing among all major global economies, though the trade related disruptions have exacerbated uncertainties clouding the economic outlook.

2. Industry

i) Oil and Gas Industry:

a. Global Market:

Global oil demand in 2025 is projected to increase by just 1 million barrels per day (bpd) to 104.2 million bpd from 103.2 million bpd in 2024 and 102.2 million bpd in 2022 as per International Energy Agency. In times of reciprocal tariffs, like other sectors, the oil industry is also going through a rough phase due to controlled supply by the Organization of the Petroleum Exporting Countries and its allies (OPEC+), heightened geopolitical tensions, macroeconomic weakness, and a continued focus by certain countries on energy transition.

The non-OPEC+ producers will continue to lead the capacity build, accounting for 4.6 million bpd, or 76% of the net increase. The US alone makes up 2.1 million bpd of the non-OPEC+ gains, while Brazil, Guyana, Canada, and Argentina contribute a further 2.7 million bpd.

On the other hand, total OPEC crude oil production capacity is estimated to increase marginally to 33.3 million bpd in 2025 from 33.1 million bpd in 2024.

According to the US Energy Information Administrations forecast, the worldwide production of petroleum and other liquids in 2025 and 2026 will grow more in non-OPEC+ countries than in OPEC+ countries. Because of ongoing production restraint among OPEC+ countries, it has projected the groups production to grow by 0.1 million bpd in 2025 and 0.6 million bpd in 2026.

Production from OPEC+ members accounted for 47% or 35.7 million bpd of global crude oil production in 2024. It is projected that OPEC+ crude oil production will increase by 0.1 million bpd in 2025 as the group gradually increases production. Non- OPEC+ production is set to rise by 1.5 million bpd in 2025, led by the Americas.

The driver of the growth, though, will be Asia, particularly China, due to demand driven by petrochemical feedstock.

OPEC in April reduced its global oil demand growth forecast for 2025 due to sweeping tariffs announced by US President Donald Trump. OPEC has projected the world oil demand to increase by 1.30 million bpd in 2025 and by 1.28 million bpd in 2026. Both projections are down 150,000 bpd from earlier estimates.

OPEC is more optimistic about future oil demand, projecting continued growth for years to come. In contrast, the IEA forecasts that global oil use will peak later this decade as the shift toward cleaner energy sources accelerates.

Global oil prices have eased significantly in recent months as trade war has cast a shadow on growth and demand. As on April 29, the Brent crude oil price was $64.9 per barrel, down 13.2% from a month ago and 24.9% a year ago.

With global prices easing, Goldman Sachs has cut its crude oil price forecast for 2025 to $58 per barrel $69 per barrel earlier amid recession risks, slowing demand, and more supply from OPEC+ producers.

The flip-flops in US tariff policy have added to uncertainties and concerns around global oil demand growth. The imposition of sweeping tariffs on China could significantly impact the sector. As per projections before the tariffs were announced, Chinas liquid fuel consumption is seen growing by 0.3 million barrels per day in 2025.

The industrys woes continue—first the pandemic, then the global economic slowdown due to wars, and now tariffs.

b. Indian Market

According to IEA forecasts, Indias oil demand will rise significantly in 2025, contributing to global oil demand growth. India is projected to add around 900,000 barrels per day between 2025 and 2030. Diesel and gasoil, which are vital for industrial activity, are projected to be the primary drivers of oil demand growth in the country.

India is the third-largest oil consumer in the world, after the US and China. Its also a major importer of crude oil, with about 85% of its oil needs being met through imports. The ever-increasing growth in urbanisation and industrialisation, a growing middle class with rising disposable income, improved access to clean cooking, a young population, and a strong economy are all contributing to the rising demand for oil in the country.

Though some of the big firms in the country are focusing on alternative energy sources, the demand for oil is unlikely to come down in the coming years.

According to an IEA report, Indian oil firms are making significant investments to enhance their refining capacities in order to meet the rising domestic oil demand. Over the next seven years, India will add about one million barrels per day of new refinery distillation capacity, second only to China. Several major projects are also under consideration, which could push capacity beyond the currently projected 6.8 million bpd.

Oil demand in 2025 is projected to touch 5.9 million barrels per day, a marginal increase from 5.7 million barrels per day in 2024 and 5.5 million barrels per day in 2023.

Indias crude oil imports rose by 2.7% to $166.72 billion during Apr-Feb, according to commerce ministry data. The low growth has been primarily on account of relatively lower crude oil prices so far. Over 30 countries export crude oil to India. The major ones include Russia, Iraq, Kuwait, Saudi Arabia, UAE, and Venezuela. Russia was the top exporter of oil to India at $43.47 billion in Apr-Jan, followed by Iraq at $23.18 billion, Saudi Arabia at $16 billion, and UAE at $11.7 billion.

With the US pressuring India to reduce the trade deficit, India may look at increasing imports from the country in the coming years. It imported crude oil worth $5.43 billion from the US in Apr- Jan.

As of April 28, the Indian crude basket has averaged $68.18 per barrel in April, down 6% from $72.47 per barrel in March. With the Indian Basket crude oil falling, the government has announced a 2/litre hike in basic excise duty on petrol and diesel. The hike has not affected the retail prices as oil marketing companies have absorbed the hike.

Though India heavily depends on imports, it is also a key exporter of petroleum products. But due to declining prices, Indias petroleum product exports contracted by 25.6% year-on-year to $58.61 billion during Apr-Feb.

Indias domestic crude oil production has been steadily declining. In February, the production fell 5.2% on year to 2.21 million tonnes. Indias crude production in Apr-Feb declined 2.3% to 26.25 million tonnes.

Domestic natural gas production declined 6% on year to 2712 million metric standard cubic meters (mmscm) in February. In Apr-Feb, it rose marginally to 32647 mmscm from 32645 mmscm in the same period of last year.

Government Initiatives

The oil and gas sector is one of Indias eight core industries and plays a crucial role in shaping decision-making across other key areas of the economy. The countrys economic growth is closely linked to its energy demand, and as a result, the need for oil and gas is expected to rise. But to curb its rising import bill, the government is simultaneously focusing on promoting alternative energy sources, electric mobility, and biofuels.

In recent years, the government has announced a series of steps to promote the oil and gas sector in the country. The Budget for 2024-25 allocated 497.25 crore for the scheme for the development of pipeline infrastructure for the injection of Compressed Biogas (CBG) in the City Gas Distribution (CGD) Network. In February 2024, Prime Minister Narendra Modi unveiled a strategic investment plan of $67 billion for the Indian gas sector over the next 5-6 years.

In the Budget for 2025-26, 5,876 crore have been allocated for strategic oil reserves, which signifies a prudent measure for bolstering the countrys energy security. Additionally, 250 crore have been budgeted for the scheme for the development of pipeline infrastructure for the injection of CBG in the City Gas Distribution Network. The scheme helps address financial barriers in pipeline infrastructure development, establishes a robust supply network in CBG-producing regions, and contributes to reducing carbon footprints.

Indian public sector oil companies had utilised 98% of their total annual capital expenditure target by December 2024, indicating a potential overspend for fiscal 2024-25. Oil PSUs spent 1.16 lakh crore during the Apr-Dec period out of the total targeted capex of 1.18 lakh crore for fiscal 2024-25, according to oil ministry data.

The increased spending comes as oil PSUs are setting up new petrochemical facilities, ramping up efforts to boost exploration activities and improving gas infrastructure to cater to Indias rising energy consumption.

ii) Water Industry a. Global Scenario

A report by this UN body states that by the end of this year, half of the global population could be living in areas facing water scarcity, despite safe drinking water and sanitation being considered human rights. They are not only key to individual health but also crucial for economic development and growth. Developing and maintaining clean and safe water resources is one of the key goals of any country, particularly for emerging economies and least developed nations.

According to the United Nations World Water Development Report 2024 - Water for Prosperity and Peace - water influences the economy and global trade dynamics in many ways. In 2022, the UN reported that 2.2 billion people lacked access to safely managed drinking water. Four out of five people lacking at least basic drinking water services lived in rural areas. This also indicates a significant disparity in access to safe drinking water between urban and rural populations

Roughly half of the worlds population currently experiences severe water scarcity for at least part of the year. One-quarter of the global population faces extremely high levels of water stress, using over 80% of their annual renewable freshwater supply.

The report notes that freshwater use has been growing by just under 1% per year due to several socio-economic factors and related changes in consumption patterns, including dietary shifts. While agriculture accounts for roughly 70% of freshwater withdrawals, industrial use at 20% and domestic use at 10% are the main drivers of increasing water demand.

The water crisis is further worsened by climate change, population growth, rapid urbanisation, widespread pollution, and poor water management. Disputes over trans-boundary water resources are also on the rise.

Agriculture, the largest consumer of freshwater, is both a contributor to and a victim of water stress. Unsustainable irrigation practices are depleting water sources, while erratic rainfall across continents threatens food security. Meanwhile, industrial pollution and untreated sewage continue to contaminate rivers, ponds, lakes, and other water bodies, shrinking the supply of potable water.

Several regions across continents are currently facing severe water crises due to these issues. The most affected regions include the Middle East, North Africa, South Asia, Sub-Saharan Africa, and Central Asia.

Over a third of African countries—with a combined population of over half a billion are considered water-insecure Further, since 2015, the number of people without safely managed drinking water in Africa has increased from 703 million to 766 million, despite Africa receiving one-third of global official development assistance for the water sector.

The situation is expected to deteriorate further. According to UNICEF, about two-thirds of the worlds population face severe water scarcity for at least one month each year, and over two billion people already live in countries where the water supply is inadequate.

The water scarcity may also lead to large-scale displacement. About 700 million people are at risk of being forced to migrate due to intense water stress by 2030. Looking further ahead, by 2040, approximately one in four children worldwide will be living in areas of extremely high water stress—highlighting the growing urgency for sustainable water management and global cooperation.

b. Indian Scenario

The Asia-Pacific region accounts for 36% of the worlds water resources and supports around 60% of the global population, resulting in the lowest per capita water availability worldwide. This challenge is expected to worsen due to reasons such as fast-growing urbanisation in countries like India and increasing pollution levels.

Additionally, the regions complex network of shared river systems makes it particularly susceptible to tensions and disputes over water resources, posing risks to peace and security.

India faces a significant water crisis, with a large portion of its population lacking access to safe water and sanitation. While the countrys population is a substantial 18% of the global total, it only has access to 4% of the worlds water resources. Factors like extreme water stress, contaminated water sources, and climate change impact the availability and quality of water and sanitation. A NITI Aayog report titled Composite Water Management Index, published in June 2018, mentions that India is undergoing the worst water crisis in its history, with nearly 600 million people facing high to extreme water stress. The report ranked India 120th among 122 countries on the water quality index, with nearly 70% of water being contaminated.

Major causes of the water crisis include over-extraction of groundwater, lack of infrastructure, inefficient agricultural practices such as flood irrigation, rapid urbanisation, population growth, pollution of water bodies, poor water management, climate change, erratic rainfall, and the loss of traditional water systems. The crisis affects not only human health but also economic growth.

As Indias water crisis deepens, efforts to tap into additional sources may escalate, leading to environmental degradation. These efforts could harm biodiversity, disrupt ecological balance, and further degrade the natural environment.

One of the key challenges is the lack of reliable water data. Data systems related to water in India are limited in their coverage, robustness, and efficiency.

According to the Dynamic Ground Water Resource Assessment 2023 report by the Central Ground Water Board, out of the 705 districts assessed, 24 districts were classified as Critical and 98 as Over-Exploited.

Government initiatives

Drinking water is a state subject. However, the Government of India has been implementing the Jal Jeevan Mission (JJM) since August 2019, with the objective of providing safe and potable tap water in adequate quantity and prescribed quality, on a regular and long-term basis, to all rural households.

At the start of the mission, only 3.23 crore or 16.7% of the rural households had tap water connections. As reported by States/ UTs as of March 31, 2025, under Jal Jeevan Mission - Har Ghar Jal, around 12.34 crore additional rural households have been provided with tap water connections. Thus, of the total 19.36 crore rural households in India, more than 15.57 crore or 80.38% now have tap water supply.

For urban areas, the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) 2.0 was launched on October 1, 2021, covering all urban local bodies. The scheme aims to make cities self-reliant and water-secure. Supplying clean water is part of AMRUT 2.0. So far, 3,587 water supply projects have been approved across the country.

Budget FY26

The Budget for 2025-26 has extended the Jal Jeevan Mission till 2028 and increased the allocation to 67,000 crore.

The Budget has allocated:

• 25,276.83 crore for the Department of Water Resources, River Development and Ganga Rejuvenation

• 74,226.02 crore for the Department of Drinking Water and Sanitation

iii) Steel Industry

a. Global Market

World crude steel production in 2024 is estimated to have declined by 4.0% from the 2021 levels. Weak global steel demand has been further impacted by unilateral tariffs imposed by the United States. The escalating trade war between the US and China — the worlds largest producer and consumer of steel — has aggravated the situation.

The downturn in the steel industry is primarily attributed to weak demand in China, Japan, and the US, which rank among the top four global steel consumers. India, the second-largest producer and consumer of steel, has been a notable outlier.

China, which accounts for around half of the worlds steel production and consumption, has been experiencing a real estate crisis that has dragged down demand. The tit-for-tat tariffs between Washington and Beijing have worsened the growth outlook for both countries. Fitch Ratings has cut its 2025 growth forecast for the US and China by 50 basis points each, to 0.6% and 3.9%, respectively.

Steel industry prospects have been declining since the second half of 2022, as activity in steel-using sectors has slowed due to weakened investment and consumption demand.

Outlook:

The US administrations imposition of tariffs on steel and aluminium imports has clouded the outlook for the sector. The escalating trade war between the US and China has further complicated the situation.

The outlook for the sector has been clouded by trade disruptions. The World Steel Association postponed the release of its short-range outlook for April due to the US tariff announcements. According to the associations October 2024 outlook, global steel demand in 2025 is projected to rebound by 1.2% to reach 1,772 million tonnes, significantly lower than the 1,815 million tonnes projected in the April forecast.

Global crude steel production in 2024 was at 1,884.6 million tonnes, down 1.0% from 1,904.1 million tonnes in 2023. China accounted for over half of the total, producing 1,005.1 million tonnes, a 2.3% decline from the previous year.

India remained the second-largest producer with 149.4 million tonnes, marking a 6.2% increase from 2023. World crude steel production for the 69 countries reporting to the World Steel Association was 302.0 million tonnes in January-February, down 2.2% from the same period last year.

b. Indian Market

The World Steel Association has projected an 8.0% increase in Indian steel demand in 2025, driven by growth across all steel-consuming sectors, particularly infrastructure. India has emerged as the strongest driver of global steel demand since 2021. Over the last six years, the Indian government has more than tripled its capital expenditure. For 2025-26, the capital expenditure is projected to rise 10.1% to 11.21 lakh crore.

Indias steel demand has consistently outpaced global growth, making it a key player in the global steel market. Infrastructure projects are a major contributor to steel demand in India, as evidenced by the governments focus on infrastructure development and increased capital expenditure.

Although India has traditionally been a net exporter of finished steel, it has become a net importer in recent years due to domestic demand outpacing production. India was a net importer of 0.83 million tonnes of steel in 2023-24 and 4.38 million in April-January of 2024-25.

The flat 25% tariffs imposed by the US on steel imports are expected to have limited direct impact on Indian steelmakers, given their minimal exposure to the US market, according to Fitch Ratings. However, the persistent influx of cheap steel from China and rising risks from aggressive tariff policies elsewhere may put downward pressure on domestic prices.

Fitch Ratings projects Indias steel demand will grow by around 10% in 2025-26, supported by strong public spending and demand from the construction, infrastructure, and manufacturing sectors.

Government initiatives

The Indian government has taken several steps to boost domestic steel production and shield the industry from cheaper imports. The Directorate General of Trade Remedies has recommended a 12% safeguard duty on steel imports for 200 days to protect the domestic industry from potential harm due to a recent surge in imports.

The government has launched a Production Linked Incentive Scheme for specialty steel with an outlay of 6,322 crore. Under this scheme, 44 memorandums of understanding have been signed, involving a committed investment of 27,100 crore and a downstream capacity addition of 23.8 million tonnes.

According to the National Steel Policy, India aims to increase total crude steel production capacity from 179.5 million tonnes in 2023-24 to 300 million tonnes by 2030-31. The policy also targets an increase in per capita finished steel consumption to 158 kg by 2030-31, up from 97.7 kg in 2023-24. Given that Indias current per capita consumption remains significantly below the global average, the country has ample room for growth in capacity and demand.

iv) Pipe Industry

According to a projection by Future Market Insights, the global pipes market is expected to grow from $146.4 billion in 2024 to $238.7 billion by 2034, with a compounded annual growth rate (CAGR) of 5.0%.

Pipes play a vital role in transporting a wide range of materials—liquids, gases, and even semi-solids—across both industrial and non-industrial sectors. Beyond their use for transporting oil and gas in industrial settings, pipes are essential for everyday infrastructure, including delivering water to homes, carrying gases through utility grids, transporting wastewater to treatment plants, channelling sewage, and irrigating farmlands.

The demand for pipes is primarily driven by factors such as growth in oil and gas, manufacturing, residential and commercial construction, water supply systems, wastewater treatment facilities, public irrigation systems, and infrastructure development in emerging economies. Additionally, continued investment in industrial sectors like food and beverage processing, chemicals, petrochemicals, and pharmaceuticals supports sustained the demand.

In India, the government is implementing two key initiatives— the Pradhan Mantri Ujjwala Yojana and the Jal Jeevan Mission— that present significant growth opportunities for the pipe industry.

While the Pradhan Mantri Ujjwala Yojana primarily focuses on gas cylinder distribution, the Indian government has set an ambitious target to expand piped natural gas connections to 125 million households by 2030, covering both rural and urban areas. This expansion of piped natural gas infrastructure offers considerable opportunities for the pipe manufacturing industry and aligns with the governments broader goal of enhancing energy accessibility and sustainability nationwide.

Under the Jal Jeevan Mission, the government aims to provide potable water to every rural household in the country through functional tap water connections. The government is expected to lay thousands of kilometres of pipelines to reach individual households.

Similarly, countries around the world are implementing programmes to improve access to safe drinking water. Notable examples are Rwandas Decentralized Rural Water Supply, Tanzanias Rural Water Supply and Sanitation Program, and Indonesias Community Water Services and Health Project. Latin American countries are also upgrading and expanding their water transportation infrastructure to address water shortages.

Pipe market and outlook

Future Market Insights expects steel pipe market to grow from $105.6 billion in 2025 to $154.8 billion by 2035, driven by increasing industrialisation, infrastructure development, and rising energy demands.

The Asia-Pacific region, particularly China and India, is expected to lead this growth due to rapid urbanisation, infrastructure development, and industrialisation. In North America and Europe, growth will be fuelled by the replacement of aging infrastructure and greater investments in sustainable and energy-efficient systems.

Rising global investments in water infrastructure, sewage networks, and energy transport are driving strong demand for piping solutions. As cities expand and urban populations increase, the need for efficient piping in residential and commercial construction will continue to grow.

Rapid growth in oil and gas, chemicals, and manufacturing, is fuelling demand for high-performance, specialised piping systems. Looking ahead, advancements in materials and production technologies, coupled with a growing emphasis on sustainability, will shape the future direction of the pipe industry.

Indian Pipe Industry

The growth of Indias pipe industry is crucial for the oil and gas sector, which heavily relies on an efficient, robust, and extensive pipeline infrastructure. Improving pipeline infrastructure will reduce the reliance on rail and road transport, lowering logistics costs and transit times, while also enhancing safety.

India is striving to boost the domestic oil and gas production, and a stronger pipe industry will help connect production sites to consumption centres more efficiently. A growing pipe industry will also play a key role in building the backbone for gas distribution networks, including pipelines for household and vehicular gas use.

India is a major importer of high-grade pipes for various industrial applications. Pushing for growth in domestic manufacturing can substitute imports and support large oil and gas infrastructure projects. During April-January 2024-25, India imported iron and steel pipes and tubes worth $765.2 million, compared to $749.1 million for the entire 2023-24 period.

India is undertaking a significant expansion of its natural gas pipeline infrastructure under the "One Nation, One Gas Grid" initiative. This ambitious project aims to create a unified national gas grid, ensuring equitable access to clean energy across the country. The target is to expand the existing pipeline network from approximately 17,500 km to 34,500 km. As of January 2025, 24,945 km of pipelines are operational, with over 10,000 km under construction.

The completion of the Jagdishpur-Haldia and Bokaro-Dhamra Pipeline Project and North East Natural Gas Grid will go a long way in achieving the national gas grid vision. The Cabinet has approved a 40% capital grant for the 129.40 billion Jagdishpur- Haldia and Bokaro-Dhamra project, and a 60% capital grant for the 55.59 billion North East Gas Grid.

Indias steel pipe industry is poised for steady growth, bolstered by government policies and schemes. Programmes like the Production Linked Incentive (PLI) scheme for specialty steel are encouraging domestic manufacturing in the sector. Steel pipes and tubes account for about 8% of Indias total steel consumption.

India Oil and Gas Pipeline Market

Indias oil and gas pipeline market is experiencing significant growth, driven by increasing energy demand, infrastructure development and government initiatives aimed at expanding the natural gas network.

According to 6Wresearch, the Indian oil and gas pipeline market is projected to reach $28.9 billion by 2031, growing at a CAGR of 6.9%. India boasts an extensive network of pipelines for both natural gas and crude oil. Key drivers for the sectors growth include rising natural gas demand, government support, and ongoing infrastructure development.

Indias natural gas demand is expected to rise by approximately 60% by 2029, signalling a major shift in the countrys energy landscape. The country is aiming to more than double the share of natural gas in its energy mix by reaching 15% by 2030. Expanding the pipeline network is crucial for enhancing energy access and supporting Indias economic growth.

The government plans to attract investments of $67 billion over the next 5-6 years to increase the share of gas in the countrys energy mix. Recent announcements, such as agreements for long-term LNG supply between Abu Dhabi National Oil Company (ADNOC) and Indian Oil Corporation, as well as MoU between ADNOC and India Strategic Petroleum Reserve, will further propel growth in this sector.

Pipeline network demand in Water Sector

Demand from the water sector—both for irrigation and drinking water—is driving growth in Indias pipe sector. Initiatives like the Jal Jeevan Mission, which aims to provide drinking water connections to all rural households and ambitious targets for irrigation under the Pradhan Mantri Krishi Sinchayee Yojana are significant contributors to the sectors growth trajectory.

As of March 17, 2025, the government has provided potable water to 155.3 million rural households, accounting for 80.2% of the total 193.6 million rural households in India. Work on the remaining 38.3 million households is underway. To achieve 100% coverage, the 2025-26 Union Budget has announced an extension of the Mission until 2028, with an enhanced total outlay of 670 billion. The governments Smart City project is also boosting the industry.

Market Drivers

Indias oil and gas pipeline market in India is experiencing substantial growth as the country expands its energy infrastructure to meet rising demand. The construction of new pipelines, along with the modernisation of existing ones, is essential to improving energy transportation and distribution nationwide. Indias pipe industry is well-positioned for strong growth, supported by rising demand and robust government initiatives.

3. Company and business overview

Jindal SAW Ltd. ("the Company") stands as a global leader in the coated and bare pipe industry, consistently delivering an extensive portfolio of pipe products to prominent clients in India and all over the world.

Its offerings comprise welded pipes exceeding 16 inches in diameter, for water and oil & gas applications; corrosion-resistant iron pipes up to 1.2 meters in diameter (India), Overseas (2.2 meters) tailored for water and wastewater applications; and non-welded pipes and tubes for industrial uses.

Additionally, the portfolio includes welded and non-welded pipes and tubes crafted from various grades of stainless steel, serving diverse industries.

The Company maintains a modest presence in smaller-diameter non-iron pipes to complement its comprehensive product range and also engages in the production and sale of pellets.

The Companys distinction as a complete pipe solution provider is underpinned by its wide array of anti-corrosion and protective coating capabilities, supplemented by essential ancillaries such as fittings, bends, and flanges.

Jindal SAW Ltd.s manufacturing facilities adhere to the highest global standards, holding accreditations that reflect full compliance with stringent quality systems. With its broad and versatile product offerings, the Company effectively supplies the entire spectrum of pipe requirements across multiple sectors, including energy transportation, water and wastewater infrastructure, automotive, industrial applications, and specialized fields such as nuclear power.

For four decades, the Company has solidified its reputation as a trusted producer and supplier across its diverse product range, underpinned by a proven track record, a versatile product portfolio, and technologically advanced, multi-locational manufacturing facilities.

The Companys well-established client base in domestic and global market space and robust technological capabilities further reinforce its position as a dependable leader in the industry.

The Companys business model reflects a high level of diversification across regions, markets, products, sectors, and clientele, fostering significant resilience against various risks. This strategic approach enables Jindal SAW Ltd. to navigate complex economic and geopolitical challenges while maintaining operational efficiency and effectiveness.

In India, the Company operates manufacturing facilities strategically located in Uttar Pradesh, Gujarat, Maharashtra, Andhra Pradesh, Karnataka, Rajasthan, and Madhya Pradesh. These well-positioned plants enhance proximity to customers, optimizing service delivery. Additionally, through its subsidiaries and associates, the Company maintains manufacturing operations in the United States and the United Arab Emirates, further expanding its global footprint.

The acquisition of Sathavahana Ispat Ltd., finalized in 2023, marked a significant milestone, establishing the Companys presence in southern India. This facility, equipped to produce corrosion-resistant iron pipes, pig iron, and supported by a captive coke oven

and power plant, complements the Companys existing corrosion-resistant iron pipe manufacturing units in Mundra (Gujarat) and Abu Dhabi (United Arab Emirates). As a result, Jindal SAW Ltd. has emerged as one of the worlds leading producers of these pipes.

Furthermore, the Company operates a large-scale mechanised low grade magnetite iron ore mine in Rajasthan, secured under a 50-year mining lease. Spanning 1,989 hectares with sustainable reserves, these mines support the Companys state of the art technologies for beneficiation of low-grade ore and pelletisation processes, enabling the production of high-grade iron pellets. These pellets are supplied to both domestic and international markets, further strengthening the Companys diversified revenue streams.

The Company remains dedicated to its core operations in pipes and pellets. To enhance focus and efficiency, it has successfully exited, demerged, de-subsidiarized non-core businesses. Additionally, it has also completed a merger involving certain domestic subsidiaries. This strategic realignment fosters operational synergies, consolidates resources, and streamlines its structure. By pooling financial, managerial, technical, and human resources, the company is building a robust foundation for sustainable growth and enhanced stakeholder value. This consolidation also enables it to offer customers a unified platform for its diverse product portfolio.

The Companys philosophy centers on delivering value-added products that meet the stringent quality demands of leading clients in India and worldwide. All of the Companys manufacturing facilities adhere to the highest standards of quality accreditation. To further strengthen its global operations, the Company is developing a sophisticated IT platform to support seamless activity management and enhance customer engagement.

The Company is deeply committed to sustainability and social responsibility. Through targeted initiatives, Jindal SAW is actively reducing the environmental impact while promoting community development, reinforcing its role as a responsible corporate citizen.

The Companys workforce stands as its most valuable asset and true representatives, exemplifying the principles of Collaboration, Transparency and Integrity, Pursuit of Excellence, and Client-Centricity and Employee Care. It cultivates a robust employee- employer connection through initiatives that ignite commitment, passion, and alignment with its collective objectives.

The Companys workforce flourishes in an adaptive setting, where it proactively responds to evolving technologies and external trends. It consistently enhance policies to prioritize employee needs, with periodic assessments ensuring benefits are extended across all levels, fostering satisfaction and fortifying workforce resilience.

The Company places significant emphasis on employee development, providing technical and soft-skills training, role rotations, and access to innovative technologies. Its Leadership Continuity Program identifies and grooms prospective leaders, empowering employees to step into critical positions and propel organizational achievements.

To honour employee contributions, the Companys Goal-Oriented Performance Evaluation System establishes clear Key Performance Indicators (KPIs) each year. Through impartial, merit-driven assessments, it celebrates high achievers and offer customized Performance Enhancement Plans to guide the employees toward their full potential.

The Company is steadfast in promoting employee welfare, safety, and inclusivity, underpinned by stringent anti-harassment measures and an effective grievance resolution mechanism. Holistic benefits, including health coverage, wellness programs, and vibrant community initiatives, alongside efforts to empower women, foster a nurturing and equitable culture, evidenced by strong retention and elevated employee contentment.

4. Key Subsidiaries

The Company describes its core business as pipes and pellets. As part of corporate restructuring, it has exited several noncore companies/ businesses, allowing the Company to solidify its position as a market leader in the core business and improve its financial performance. The Company currently runs a small number of subsidiaries, mostly tied to the core business, in India and abroad. The Companys principal operating subsidiaries are listed below:

JINDAL SAW GULF LLC, ABU DHABI, UAE

Jindal SAW Gulf LLC is an Abu Dhabi subsidiary of Jindal SAW. It has West Asias first major state-of-the-art integrated facility, producing rust-free iron pipes of various sizes. It concentrates on supplying high-quality techno-economic goods and solutions for water transportation and sewage systems throughout the GCC and MENA region. The factory, which has an installed capacity of 300,000 tonnes per year, manufactures rust-free iron pipes in sizes up to DN 2200. The UAE facility has approvals from customers and successfully supplied to nearly all countries within the GCC and MENA regions, and outside, namely Australia, Vietnam, Brazil, Singapore, etc. Jindal SAW Gulf has also developed value added products, including double chamber pipes, polyurethane coated pipes, etc. to capture premium markets that will drive better profit margins in the long run.

The companys investment in Abu Dhabi, through Jindal Saw Gulf LLC, reflects a strategic move to expand its presence in the Middle East and globally, making it a substantial investment within its broader portfolio.

JINDAL SAW USA LLC

Jindal SAW has a double jointing and coating facility in Baytown, Texas under Jindal SAW USA, LLC, a 100% step-down subsidiary, to serve the North American market. Jindal SAW USA LLC, an ISO 9001: 2015 firm, was founded in 2007. This facility includes rail, road, and barge shipping capabilities within the North American market. The plant has a capacity of 5 million square metres per year.

JINDAL METALS & ALLOYS LTD.

Jindal Metals & Alloys Ltd is a market leader in producing High-Quality Precision Stainless Steel Strips and Soft Magnetic Nickel Alloys. It has a large selection of thin and super thin cold rolled strips. Precession Stainless Steel and Nickel Alloys are used in production of textile machinery, clocks, watches, and electrical equipment. The Jindal Groups technical, production, and logistical resources are accessible to Jindal Metals & Alloys Ltd, which is located at Bahadurgarh in Haryana.

JINDAL ITF LTD.

Jindal ITF Ltd, a 51% subsidiary of Jindal SAW, is in the business of transhipment and waterborne transportation. Jindal ITF has entered contracts for providing its services to clients such as NTPC. Due to disputes on contractual terms, Jindal ITF has entered arbitration with NTPC. On January 27, 2019, the Arbitral Tribunal pronounced the final award in favour of Jindal ITF, allowing various claims to the tune of 1,891 crores plus interest and applicable taxes. The Arbitration Award was challenged by NTPC in Delhi High Court.

The Honble Delhi High Court Single Judge Bench set aside the Arbitration Award vide its Judgement pronounced on 30th January 2025. Jindal ITF has filed an appeal against the order before the divisional bench of Honble Delhi High Court.

JINDAL HUNTING ENERGY SERVICES LTD. (JHESL)

The Company has entered a Joint Venture with Hunting Energy Services Pte Ltd, Singapore ("Hunting") wherein it holds 51% shareholding & balance by Hunting. This state-of-the-art facility is a Centre of Excellence for cutting all kinds of Premium Threads on OCTG & Accessories and is a first-of-its-kind full-fledged manufacturing set up in India which is co-located with the Pipe manufacturing facility of Jindal SAW at Nashik, Maharashtra.

The facility is poised to attain an annual threading capacity of 70000+ Joints Casings, Tubing, Accessories & Weld-On-Connectors covering the full spectrum of range from 2-7/8 to 36. While JHESL got API licence/approval in May, 2024 it is operating the plant at 70-80% capacity utilization level.

JHESL is also licenced by Oil State Industries (OSI) to threaded Patented OSI threads on Connectors with the connector and the full range of premium threaded OCTG products for Oil and Gas Industry. It has become the first the manufacturing facility in India to offer OCTG products from India to different parts of world. It would also help to substitute imports.

The joint venture is in line with the goal of the nation to become Atmanirbhar Bharat.

5. Business Strategy

Jindal SAW Ltd. operates as a dynamic, multi-product, and multi-locational enterprise with a robust global presence. Over the years, the Company has significantly expanded its core business footprint, establishing a strong presence in key markets, including the United States, the Middle East, and Europe through subsidiaries and associates.

The Companys direct marketing and service operations span major global markets, enabling it to effectively serve a diverse clientele.

In recent years, the Company has strategically entered new product segments, fostering operational synergies and enhancing its business model. This approach allows it to explore diverse markets and industries, broadening the product portfolio and customer base while mitigating risks associated with specific industries, products, or customers. This diversified model has consistently supported stable business growth and earnings, aligning with its managements strategy to deliver sustained performance. By focusing on core business, expanding product offerings in niche segments, and strengthening market leadership, the Company is achieving strong profitability and maximizing stakeholder returns.

Strategic Business Priorities

Jindal SAW Ltd. pursues a focused business strategy to drive growth, innovation, and stakeholder value, guided by the following key objectives:

a. Product Portfolio Expansion: The Company is committed to broadening its comprehensive product range by developing high- value, niche products tailored to meet the evolving demands of customers operating in complex and challenging environments.

b. Operational Efficiency: The Company is dedicated to optimizing costs by streamlining operations and resources, enhancing competitiveness, and ensuring sustainable profitability.

c. Resource Utilization and Innovation: Through strategic collaborations with global industry leaders, the Company aims to maximize the utilization of available resources by fostering innovation, introducing new product ranges, and exploring growth opportunities.

d. Client Relationship Excellence: The Company prioritizes building and nurturing long-term relationships with a diverse global clientele spanning sectors such as oil and gas, water, automotive, chemical, food, pharmaceutical, and nuclear industries. Unwavering commitment to superior product quality and timely deliveries positions the Company as a trusted partner to renowned public and private entities worldwide.

e. Focus on Value-Added Products: In recent years, the Company has strategically shifted toward value-added products to differentiate itself in the competitive steel pipe market. This focus has expanded its customer base, enabled entry into high- demand markets such as offshore oil and gas drilling, and strengthened the reputation for delivering specialized, high-quality solutions.

f. Support for Atmanirbhar Bharat Mission: Aligned with the vision of Atmanirbhar Bharat championed by Prime Minister Narendra Modi, the Company is contributing to Indias self-reliance in economic and infrastructure sectors. By promoting Indian-manufactured goods in global supply chains, emphasizing import substitution, and enhancing domestic manufacturing capabilities, the Company is advancing the themes of Local for Global: Make in India for he World and Vocal for Local. Transition to value-added products positions the Company as a key supplier of high-quality alternatives to imported goods, supporting the nations journey toward self-reliance.

g. Climate and ESG: Jindal SAW Ltd. places sustainability at the core of its operations, integrating environmental responsibility into its product design, processes, and leadership. The companys ESG initiatives span across its entire value chain and its leadership, including business heads, has undergone formal sustainability training, reinforcing the companys alignment with global environmental, social, and governance standards. The Company also actively supports social development in education, healthcare, water, and sanitation, particularly in the post-COVID context.

6. SWOT Analysis

Key Competitive Strengths

Jindal SAW Ltd. leverages a robust set of competitive advantages to maintain its leadership in the industry, including:

a. Diversified Business Model: The Companys operations span oil and gas, water, and various industrial applications, ensuring resilience and adaptability across multiple sectors.

b. Risk-Mitigating Portfolio: A versatile product portfolio and business model provide a strong hedge against market, industry, and operational risks, fostering stability and sustainable growth.

c. Global Manufacturing and Distribution Network: With pipe production facilities, finishing capabilities, and a widespread distribution network worldwide, the Company delivers products directly to end-users, enhancing accessibility and customer satisfaction.

d. Comprehensive Product Offerings: A diversified product range enables the Company to meet varied customer demands through a single, reliable platform, reinforcing the Companys position as a preferred one-stop solution provider.

e. Broad and Loyal Customer Base: A diversified customer portfolio, coupled with longstanding relationships with major international companies, ensures proximity to clients worldwide, fostering trust and sustained collaboration.

f. Exemplary Governance Standards: By upholding the highest standards of corporate governance, the Company strengthens stakeholder confidence, reinforcing its reputation as a responsible and transparent organization.

g. Robust Financial Position: Its strong financial foundation supports strategic initiatives aimed at enhancing stakeholder value, driving sustainable growth, and delivering consistent returns.

Areas of Focus (Weaknesses)

a. Competition from Imports: The Company may encounter challenges from lower-cost imports, particularly from markets such as China, which could impact revenue and profitability. The Company is actively monitoring market trends to address this pressure strategically.

b. Working Capital Requirements: The industrys high working capital demands present ongoing challenges. Factors such as limited credit access, elevated interest rates, and intricate lending processes can complicate funding efforts. The Company continues to optimize resource allocation to mitigate these constraints.

c. Foreign Exchange Exposure: As a significant player in global trade, the Company is subject to foreign exchange rate fluctuations. While it employs a natural hedging policy to minimize risks, volatility in currency markets may still influence profitability. It remains vigilant in managing these exposures to maintain financial stability.

Opportunities for Growth

a. Emerging Sector Potential: The rise of new markets, such as hydrogen fuels and carbon-capture pipelines, presents significant opportunities. Jindal SAW Ltd. is proactively exploring ways to capitalize on these innovative sectors to drive future growth.

b. Support from National Initiatives: Government programs like Make in India and Atmanirbhar Bharat aim to strengthen domestic production and competitiveness. By developing value-added products locally, the Company is well-positioned to expand its operations and increase its domestic market share.

c. Oil and Gas Sector Trends: Megatrends in the oil and gas industry, including offshore exploration, shale gas production, and digital transformation, offer substantial prospects. Leveraging its expertise, the Company aims to enhance presence and performance in this dynamic sector.

d. Global Infrastructure Demand: Increasing worldwide demand for infrastructure development in transportation, water supply, and energy sectors aligns with the Companys core capabilities. Jindal SAW is strategically positioned to seize these opportunities, further solidifying its market leadership.

e. Government Policy Support: Initiatives such as the Production Linked Incentive scheme and Jal Jeevan Mission, focused on advancing infrastructure, housing, and development, create unique opportunities. The Company is poised to harness these policies to drive growth and deliver value to stakeholders.

Potential Challenges (Threats)

a. Unforeseen Disruptions: Unexpected events, such as the COVID-19 pandemic, can impact the Companys operations, supply chain, and product demand. The pandemic highlighted the importance of a resilient business model capable of adapting to sudden market shifts. Jindal SAW Ltd.s swift response to these challenges reflects its agility and strong leadership, enabling it to navigate such disruptions effectively.

b. Geopolitical Risks: Geopolitical tensions in the context of international trade and investments pose potential threats to the Companys business. Trade barriers, tariffs, and restrictions arising from such conflicts could hinder the Companys ability to source raw materials and export finished products. Additionally, geopolitical uncertainties may limit opportunities for international investments and joint ventures, potentially constraining access to new markets and growth prospects.

c. Domestic Market Pressures: The Indian steel sector faces challenges from lower-cost imports and fluctuating demand, which could reduce market share, revenue, and profitability. To address these pressures, Jindal SAW Ltd. is focused on enhancing product quality, optimizing supply chain efficiency, and expanding its customer base to maintain competitiveness and mitigate the impact of such threats.

7. Risks and Mitigation Strategies

a. Industry and Macroeconomic Risks: Operating in a dynamic industry, the Companys performance and investments are influenced by macroeconomic trends and market conditions. Adverse regulatory or economic shifts in global markets could impact revenue, earnings, cash flow, and outlook. To mitigate these risks, Jindal SAW Ltd. closely monitors industry trends and maintains a flexible business model to adapt to changing environments, ensuring sustained delivery on commitments.

b. Financial Market Risks: Volatility in financial markets can affect the Companys operations, balance sheet, and ability to secure cost-effective financing. The Company proactively manage these risks by maintaining a strong financial position, diversifying funding sources, and engaging with financial partners to optimize terms and pricing, ensuring resilience against market fluctuations.

c. Foreign Exchange Risks: As a global operator, the Company conducts frequent foreign currency transactions for raw material imports and product exports, exposing it to exchange rate volatility. To minimize this impact, the Company implements a robust hedging policy compliant with regulatory standards, complemented by the natural hedge inherent in its business model, to stabilize financial outcomes.

d. Direct Cost Risks: Fluctuations in raw material, energy, or other direct costs can affect margins. The Company mitigates this through vigilant monitoring of price trends, strategic adjustments to business models, and leveraging its diversified operations, which inherently reduces exposure to cost volatility.

e. Legal and Tax-Related Risks: With a presence in India and internationally through subsidiaries and associates, the Company must comply with diverse legal and tax obligations, including government sanctions. To address these complexities, it maintains a rigorous control framework to manage existing tax risks, a proactive process for identifying and reporting new risks, and strict adherence to all applicable regulations, ensuring compliance across jurisdictions.

f. Environmental Law Risks: Reliance on natural resources subjects certain operations, particularly manufacturing facilities, to environmental regulations, which can impact costs and compliance efforts. As a responsible corporate citizen, Jindal SAW Ltd. adheres strictly to statutory environmental laws and conventions, integrating sustainable practices to balance compliance with operational efficiency.

g. Human Resource Risks: A skilled and motivated workforce is vital to our success. To mitigate risks related to talent acquisition and retention, the Company has established comprehensive systems, processes, and programs to attract, develop, and retain top talent, fostering a robust talent pool to support long-term growth.

h. Information Technology Risks: The Companys interconnected IT platforms, critical for operational and strategic data management, require robust security to prevent vulnerabilities. To address this, the Company has invested significantly in enhancing cybersecurity for hardware and software and maintains a highly skilled in-house team to oversee training, system development, and continuous improvements, ensuring data integrity and operational continuity.

8. Information Technology: The Backbone of Operational Excellence and Innovation

In todays fast-paced and ever-evolving technological landscape, information technology (IT) plays a pivotal role in ensuring smooth operations, driving efficiency, and sustaining growth. To remain at the forefront of this transformation, the Company has made significant strides by deploying SAP ERP (SoH) across all its business locations in India, the United States, and the United Arab Emirates. This strategic implementation allows it to stay agile and adaptable, even as the technology landscape continues to evolve.

Recognizing the rapidly changing demands of modern technology, the Company is preparing to harness the power of Artificial Intelligence (AI) and Machine Learning (ML) to further enhance the precision, efficiency, and flexibility of its operations. AI/ML along with Industry 4.0 will be integrated into various processes, providing advanced insights and capabilities that will empower its teams to make more informed decisions with agility, optimise workflows, and drive greater value across the organisation.

The deployment of SAP ERP (SoH) has been transformative, significantly boosting operational efficiency and contributing to almost zero downtime throughout FY 2024-25. SAP is not only just a cornerstone of the Companys business operations but is also deeply integrated across functions, including Sales, Logistics, Procurement, Production, Plant Maintenance, Projects, HR, and Management Information Systems (MIS). This holistic approach has allowed the Company to streamline operations, minimise delays, and maintain optimal service delivery at all times.

To maintain the current level of excellence, a resilient IT infrastructure is paramount. The Companys disaster recovery strategy ensures that it can quickly recover from any disruptions, minimising downtime and protecting data integrity. A robust disaster recovery setup is in place, with a continuous monitoring system that proactively identifies and mitigates potential outages before they can impact operations.

Security is a top priority for the Company. To safeguard its IT landscape from external threats, the Company has implemented next- generation security measures, including state-of-the-art Firewalls, Virtual Local Area Networks (VLANs), and Managed Detection and Response (MDR) solutions. Additionally, it continuously engages with its users to raise awareness about emerging cyber threats, ensuring best practices are followed to protect both systems and data.

The Companys SAP applications are securely hosted at the IBM Data Centre in Mumbai by creating a private cloud, with critical data stored in a protected, highly -reliable environment. This deployment gives the Company a 99.982% uptime as it is a TIER-3 compliant Data Centre. In the event of any disruption to SAP production systems or IBM data centre in Mumbai, the Companys Disaster Recovery setup at the IBM Data Centre in Bengaluru ensures that backup systems can be activated seamlessly within a span of 3-4 hours, ensuring data recovery till up to the last transactions and minimal impact to business continuity. Regular disaster recovery drills are conducted to fortify this process and ensure readiness during times of crisis.

In addition to SAP ERP, the Company has embraced a range of digital solutions to automate and streamline various business processes, including claims management and reimbursements, Employee Clearance Form, Legal Cases Database with advance alerts for upcoming hearing dates etc., Ticketing tool for SAP change requests, Web -based supplier detail maintenance for LD-RM, Employee Dashboard etc.

The adoption of Microsoft 365 for office solution further strengthens the Companys ability to safeguard critical communications, providing secure, resilient, and efficient email and office tools.

By continuously evaluating risk performance and embracing cutting-edge technologies, the Company is building a robust, future- ready IT infrastructure. The commitment to innovation, coupled with ongoing employee engagement and enhanced internal controls, positions the Company to adapt swiftly to future challenges and opportunities, ensuring it remain a leader in its industry.

9. Human Resources

Jindal SAW recognises employees as the greatest asset and brand ambassadors, embodying the core values of Team Spirit, Openness & Fairness, Commitment to Excellence, and Customer Focus & Care for People.

The management is dedicated to fostering a strong employee-employer relationship using strategies that ensure high levels of engagement, enthusiasm, and alignment toward shared organisational goals.

Change, it is said, is the only constant. The Company embraces change by continuously adapting to external environments and technological advancements. The commitment to ongoing improvement strengthens internal systems and policies, ensuring they remain employee-centric and responsive to both internal and external dynamics. Regular policy reviews enable the Company to extend meaningful benefits across all levels of the workforce, enhancing employee satisfaction and organisational resilience.

Employee development is a priority, with a focus on building essential competencies to deliver measurable outcomes. Through a blend of technical and behavioural training, job rotations, functional programs, and exposure to emerging technologies, the Company empowers the workforce to excel.

The Companys Succession Planning policy identifies and nurtures potential leaders, creating a robust pipeline of talent to ensure continuity in key roles, reinforcing the role of human resources as a critical driver of success.

To reward performance, the Company has implemented a Target-Based Performance Management System (TBPMS), where individual Key Result Areas (KRAs) are defined at the start of the assessment year. Periodic evaluations culminate in a fair, merit- based review, recognising top performers and identifying opportunities for growth. Employees requiring support benefit from tailored Performance Improvement Plans, providing guidance to enhance their contributions.

As a responsible employer, the Company places a strong emphasis on womens empowerment and workplace safety. Rigorous policies prevent harassment, and a robust grievance redressal platform ensures prompt resolution. Regular awareness workshops foster a safe, inclusive environment where female employees thrive with confidence.

The well-being of employees and their families is integral to the Companys culture. Comprehensive insurance coverage, regular medical camps, health check-ups, and awareness sessions promote a healthy work-life balance. Within the Companys Townships, subsidised healthcare, immunisation programs, and fully equipped Occupational Health Centers are provided. Educational opportunities for employees children, along with vibrant community events such as festivals and sports activities, cultivate a supportive and inclusive sociological environment.

The Companys resilient culture, rooted in core values, is reflected in the low attrition rates and high employee satisfaction. By investing in the people, Jindal SAW Ltd. continues to build a motivated, capable, and engaged workforce, driving sustainable success and stakeholder value.

10. Health and Safety

Jindal SAW Ltd. places paramount importance on the health, safety, and well-being of its employees while prioritising environmental responsibility across its operations. The Company is dedicated to fostering a safe, transparent, and supportive work environment, complemented by investments in employee learning and development to build competencies and nurture a robust talent pool.

The Companys experienced Environment, Health, and Safety (EHS) team works relentlessly to achieve an accident-free workplace. Key health, safety, and environmental initiatives include:

• Comprehensive Safety Training: Regular training sessions equip all employees with the knowledge and skills to adhere to safety standards and procedures, enhancing workplace safety awareness.

• Proactive Safety Audits: Routine audits identify potential workplace risks and hazards, enabling the implementation of preventive measures to mitigate threats.

• Personal Protective Equipment (PPE): Employees on the shop floor are provided with high-quality PPE to safeguard against risks such as falls, cuts, burns, and other hazards.

• Emergency Preparedness: Structured plans and protocols ensure readiness to respond effectively to emergencies, including fires, natural disasters, and medical incidents, minimising impact and ensuring safety.

• Sustainable Practices: The Company adopts environmentally responsible practices to reduce pollution and minimise adverse environmental impacts, aligning with the Companys commitment to sustainability.

• Regulatory Compliance: The Company strictly adheres to all safety regulations and guidelines mandated by relevant government authorities, ensuring full compliance across operations.

Through these efforts, Jindal SAW Ltd. reinforces its dedication to a safe, healthy, and environmentally conscious workplace, empowering workforce and contributing to sustainable organisational success.

11. Internal Control Systems and their Advocacy

The Company has implemented a comprehensive mechanism across all business verticals and systems to maintain internal controls, ensuring efficiency and reliability in its operations. To achieve effective internal controls, the Company has established a robust framework consisting of various Standard Operating Procedures, standardisation of processes in SAP, and regular updates of processes and controls through SAP. Additionally, the Company employs continuous monitoring systems, maker-checker concepts, and implements Delegation of Authority matrices to enhance internal controls.

Key measures in place include robust data security management, the use of data analytics in internal audits, and the execution of operations through SOPs to ensure compliance. The Company utilises state-of-the-art technology to enhance operational efficiency and employs a robust risk management system to identify and mitigate risks associated with business activities. The Company maintains books of accounts in SAP and executes transactions through SAP setups to ensure precision, accuracy, and integrity in reporting.

The Company extensively uses SAP to standardise internal control processes across various functions, including finance, human resources, production, and logistics. Integration of DOA matrices into SAP setups allows for transaction approval and is periodically reviewed by management and auditors. Furthermore, the Company follows a zero-tolerance policy towards statutory noncompliance and has a solid online legal compliance management system in place.

The Company conducts internal audits annually based on an approved audit plan established based on risk assessment. Internal audits are conducted by both internal and external auditors, including premier global auditing firm Deloitte Haskins & Sells LLP, which identifies areas for improvement and corrective action. A strong code of ethics is in place to ensure compliance with the guidelines mandated by the Securities and Exchange Board of India, with a Whistle Blower Policy for reporting violations.

The Company also implements an electronic legal compliance monitoring software in place to cover all applicable laws and monitors compliance due dates. Auditing processes are conducted by Deloitte Haskins & Sells, LLP, utilising best practices and techniques aligned with global standards. The Internal Audit Report is presented to the Audit Committee quarterly, discussing major findings and compliance steps taken.

Additionally, the Company regularly assesses processes and efficiency to ensure alignment with evolving business needs, with process improvements being carried out as required. Risk management policies are followed to assess and mitigate risks, with technology utilised to standardise risk mitigation plans. Finally, the Company assigns responsibilities and accountabilities to ensure compliance with company policies and procedures, ensuring smooth operations and adherence to best practices.

12. Companys Performance and Business Outlook

Financial performance with respect to operational performance

Particulars	2022-23	%	2023-24	%	2024-25	%
Gross Revenue from operations	1,528,254.11		1,796,196.84		17,93,615.91
Profit before finance cost, depreciation, exceptional items and tax	182,693.20	12%	322,611.21	18%	3,45,576.60	19%
Profit before tax	93,796.49	6%	218,828.37	12%	2,48,792.47	14%
Profit after tax	71,483.56	5%	161,410.65	9%	1,87,446.92	10%
Cash Profit	106,950.32		206,612.68		2,35,396.02
Net Fixed assets (Excluding Intangible Assets)	609,621.21		781,225.28		8,27,679.93
Net Worth Excluding Revaluation	810,013.13		1,019,132.87		11,93,804.89

1. Profit before finance cost, depreciation and exceptional items has gone up to 3,45,576.6 lakhs from 3,22,611.21 lakhs mainly on account of improved cost control and increase in efficiency in the operations during the year.

2. Finance cost has reduced to 48,835.03 from 58,580.81 lakhs during the year on account of deleveraging and optimized debt mix.

3. Depreciation and Amortisation charges increased to 47,949.10 lakhs from 45,202.03 lakhs on account of additional capitalisation during the year.

4. Profit before tax increased to 2,48,792.47 lakhs from 2,18,828.37 lakhs mainly due to improved profitability during the year.

5. Profit after tax during FY 2024-25 increased to 1,87,446.92 lakhs from 1,61,410.65 lakhs in FY 2023-24.

6. Cash Profit (PAT + Depreciation and Amortisation) increased to 2,35,396.02 lakhs during the FY 2024-25 year from 2,06,612.68 lakhs in FY 2023-24.

Geographical Distribution of Gross Revenue from Operations

Particulars	2022-23		2023-24		2024-25
Domestic Turnover	11,94,662.36	78%	13,69,284.99	76%	13,75,826.06	77%
Export Turnover	3,33,591.75	22%	4,26,911.85	24%	4,17,789.85	23%
Total	15,28,254.11		17,96,196.84		17,93,615.91

Net worth

Particulars	As at March 31,2023	As at March 31,2024	As at March 31,2025
Equity Share Capital	6,395.19	6,395.19	6,395.19
Other Equity	8,03,617.94	10,12,737.68	11,87,409.70
Total	8,10,013.13	10,19,132.87	11,93,804.89

Total Debt

Particulars	As on March 31, 2023	As on March 31, 2024	As on March 31, 2025
Non-Current Debt (including Current Maturities)	1,20,276.14	1,79,665.89	88,576.05
Current Debt	2,08,719.56	2,09,025.81	2,12,064.69
Total	3,28,995.70	3,88,691.70	3,00,640.74

Total Debt of the Company has reduced from 3,88,691.70 lakhs as on March 31, 2024 to 3,00,640.74 lakhs as on March 31, 2025, mainly on account of scheduled repayments and prepayments of Term loans. As on 31st March 2025, the Company has closing cash, cash equivalents and bank balance of 59,798.64 lakhs. Considering the cash, the adjusted net debt was 2,40,842.10 lakhs as on March 31, 2025, as compared to 3,27,907.51 lakhs as on March 31, 2024.

Product Performance and Analysis

(In MT)

Particulars	FY 2022-23	FY 2023-24	FY 2024-25
A) Iron and Steel Pipes
Production	1,255,877	1,686,441	16,80,139
Sales	1,139,995	1,561,647	15,98,034
Job Work	115,220	86,259	77,466
B) Pellets
Production	1,499,939	1,537,444	16,49,955
Sales	1,457,106	1,579,537	16,49,910

Iron and Steel Pipes:

During the Financial Year 2024-25, the volumes of iron and steel pipes have increased by approximately 1.7 percent, as compared to FY 2023-24.

Pellets:

During the financial Year 2024-25, sales volumes of pellets have increased by approximately 4.5 percent, as compared to FY 2023-24.