Man Industries India Ltd Management Discussions

1. Global GDP Outlook

According to the International Monetary Funds July 2026 World Economic Outlook, global growth is projected at 3.0% in 2026, recovering to 3.4% in 2027, below the 3.5% average of 2024-25. Advanced economies are expected to grow at a subdued 1.7% in 2026 (United States 2.3%, euro area 0.9%), while emerging markets remain the key growth engine at 3.8%, led by Asia. The IMF characterised the outlook as being shaped by two opposing forces- a negative supply-side shock from the conflict in the Middle East, and a powerful, AI-driven technology-investment cycle.

• India: Projected to remain among the fastest-growing major economies, with growth of around 6.4% in 2026 (calendar-year basis), backed by strong domestic demand and public investment comfortably above the global average of ~3%.

• Middle East & North Africa (MENA): The region continues to benefit from energy diversification, gas-monetisation programmes, desalination and water buildouts, and sovereign-backed industrial expansion. Rising demand for oil & gas pipelines and water infrastructure is shaping strong opportunities for steel and pipe manufacturers, even as the 2026 regional conflict reshapes energy-transit routes.

• Southeast Asia (ASEAN): Supported by resilient consumption and infrastructure-led growth (~4-5%), the region is accelerating investment in energy, LNG connectivity, ports, and urban infrastructure, sustaining steady demand for tubular steel and pipelines.

The IMF cautioned that the global economy still faces material risks, including renewed trade tensions and higher tariffs, geopolitical escalation, elevated public debt, and a possible reassessment of AI-driven productivity expectations any of which could tighten financial conditions.

Source: IMF World Economic Outlook, July2026. Calendar-year basis.

"According to the IMFs July2026 World Economic Outlook, global growth is expected to hold at 3.0% in 2026 and recover to 3.4% in 2027. While constructive, this outlook remains delicate, with trade and geopolitical uncertainties posing ongoing risks. For Man Industries, this environment underscores the importance of agility and geographic diversification. With strong positioning in high-growth regions, India (~6-7%), Saudi Arabia and the wider Gulf, Central Asia, and Southeast Asia and, following the acquisition of National Pipe Company, a dedicated in-Kingdom manufacturing base, we remain confident in our long-term growth trajectory."

2. Indian Economy: Growth & Outlook

India remains one of the fastest-growing major economies in the world, supported by strong macroeconomic fundamentals, robust domestic demand, and sustained policy support. According to the Provisional Estimates released by MoSPI (5 June 2026, on the new 2022-23 base-year series), Indias real GDP grew 7.7% in FY 2025-26, up from 7.1% in FY 2024-25, with nominal GDP expanding 8.9% to approximately US$3.9 trillion, India having overtaken Japan to become the worlds fourth-largest economy. Growth was led by double-digit manufacturing expansion, construction, and services, with private consumption up 7.7% and gross fixed capital formation up 8.2% (a thirteen-quarter high in the fourth quarter).

This momentum is underpinned by large-scale infrastructure investment, manufacturing capacity expansion, and policy measures promoting self-reliance under Make in India and Atmanirbhar Bharat. The Governments sustained thrust on infrastructure, energy transition, and urbanisation is expected to create a multiplier effect on core sectors — particularly steel and pipe manufacturing.

The Union Budget 2026-27 reinforced this trajectory, allocating a record Rs.12.2 lakh crore towards public capital expenditure (effective capex of Rs.17.15 lakh crore), while maintaining fiscal consolidation with the deficit targeted at 4.3% of GDP. It also introduced an Infrastructure Risk Guarantee Fund, seven High-Speed Rail corridors, and 20 new National Waterways. The Governments focus on energy security, the national gas grid, the hydrogen economy, and decarbonisation is expected to boost demand for specialised pipeline solutions across the oil & gas, water, and hydrogen segments.

Long-Term Investment Pipeline

Indias infrastructure push remains central to its growth trajectory. The National Infrastructure Pipeline envisaged investments of around US$1.4 trillion, and India is estimated to require over US$4.5 trillion of infrastructure spending by 2030 to sustain its US$5 trillion economy aspiration. The PM Gati Shakti National Master Plan continues to strengthen multi-modal connectivity, with more than 208 projects worth Rs.15.39 lakh crore integrated to date, and further rail and logistics corridors approved. Convergence across infrastructure, energy, and raw materials underscores the central role of the steel and pipe-manufacturing industries in enabling Indias long-term growth.

3. Global Oil & Gas Industry: Demand, Supply & Outlook

The global oil and gas sector is navigating a complex mix of demand growth, supply expansion, capital discipline, and an accelerating transition toward cleaner energy. For a pipeline manufacturer, these dynamics translate into both opportunities and challenges, shaping future demand for pipeline infrastructure across geographies.

Demand & Supply Dynamics

• Global energy demand remains resilient, led by non-OECD economies particularly India, China, and the Middle East. Expanding gas-fired power generation and rising LNG trade continue to drive demand for large-diameter pipelines, LNG terminals, and related infrastructure.

• Natural gas and LNG remain the fastest-growing segments, positioned as transition fuels; India and Southeast Asia are expanding refining and petrochemical capacity, requiring robust midstream connectivity.

• Most international oil companies maintain capital discipline, prioritising free cash flow and shareholder returns, while Middle Eastern national oil companies continue to scale up investment in production and export infrastructure, a key source of steady, long-cycle demand for transmission pipelines.

Geopolitics & Energy Security

Geopolitical risk has moved to the centre of energy planning. The 2026 conflict in the Middle East disrupted flows through the Strait of Hormuz through which a large share of the regions seaborne crude and LNG passes with oil flows falling from around 20.7 million barrels per day in Q4 2025 to approximately 14.6 million barrels per day in Q1 2026, and Qatari LNG shipments temporarily curtailed. The durable consequence has been a structural acceleration of investment in redundant pipeline networks that bypass chokepoints. Digitalisation, automation, and higher-specification (sour-gas and hydrogen-ready) requirements are simultaneously raising demand for advanced pipe products.

"Global oil & gas dynamics present both opportunities and challenges for Man Industries. Rising Investment In natural gas, LNG, and Increasingly Hormuz-bypass and decarbonisation infrastructure, particularly in the Middle East and Asia, is expected to drive sustained demand for large-diameter pipelines. Indias growing energy corridors further strengthen the domestic opportunity landscape. Leveraging its technological expertise, API certifications, and an enhanced cross-border footprint, Man Industries is well placed to capitalise on upcoming projects across oil, gas, LNG, and hydrogen transportation."

4. Regional Infrastructure Snapshot - Key Export Markets

Man Industries is a substantially export-oriented business, supplying large-diameter line pipe and coating systems across the Middle East and North Africa, the GCC, Central Asia and the Caspian, the Far East, the Americas, Europe, Africa, and Australia. This section reviews the demand outlook across the Companys principal export geographies, including the structural realignment of Middle East energy routes following the 2026 regional conflict, and the outlook for the global large-diameter line-pipe market.

4.1 Middle East: Energy-Route Realignment Post-Conflict

The Middle East is the single most important addressable market for the Company. Industry data indicate that nearly half of all oil-and-gas line-pipe projects currently under construction are located in the Middle East and Africa. The Middle East oil-and-gas line-pipe market is estimated at approximately US$6.54 billion in 2026, growing at a 3.39% CAGR to around US$7.73 billion by 2031, with pipe above 24-inch outer diameter accounting for over half the market and transmission the largest application. Saudi Arabia is the regions largest market (~39% of 2025 demand) and Iraq the fastest growing (~5.35% CAGR).

Notably, National Pipe Company (NPC) now a wholly owned subsidiary of the Company is identified among the regions five leading line-pipe suppliers. In-country localisation mandates (IKTVA in Saudi Arabia, ICV in the UAE) award higher tender scores to bidders with domestic manufacturing, materially strengthening the position of the Companys in-region platform.

The 2026 Conflict and the Hormuz-Bypass Build-Out

While the 2026 conflict was disruptive in the near term, its more durable consequence has been an accelerated race among Gulf producers to build export routes that reduce dependence on the Strait of Hormuz. Analysts estimate that a portfolio of pipeline and export-infrastructure projects could insulate more than 45% of pre-conflict Gulf export volumes from future Hormuz disruption by the end of 2027, rising toward 60% by 2028. Key programmes include:

• United Arab Emirates: Fast-tracking a new parallel line alongside the Abu Dhabi Crude Oil Pipeline (ADCOP / West-East line to Fujairah), targeting roughly 3.6 million bpd of Hormuz-bypass capacity by mid-2027.

• Saudi Arabia: Evaluating expansion of the East-West (Petroline) crude pipeline to increase Red Sea evacuation capacity.

• Iraq: The Basra-Haditha pipeline under construction; revival of the Kirkuk-Baniyas (Iraq-Syria) Mediterranean route (~800+ km, up to ~2 million bpd) with US backing; and renewed study of a Basra-Aqaba (Iraq-Jordan) route, a multi-year, 3-5-year build programme.

• Reconstruction: Rebuilding of conflict-affected energy, storage, and desalination assets across the Gulf adds a further stream of demand for line pipe and coated water-transmission pipe.

For an API-certified manufacturer with an in-region base, the post-conflict environment therefore represents a structural, multi-year tailwind rather than a one-off disruption provided execution and regional-security risks are managed.

4.2 Saudi Arabia

Oil & Gas - Strategic Expansion and Diversification

• Gas-led strategy: Aramco maintains around 12 million bpd of sustainable crude capacity while decisively pivoting investment toward natural gas, which delivers higher returns and supports power generation, petrochemicals, and future hydrogen pathways. The Kingdom targets an increase in sales-gas production capacity of the order of 60-80% by 2030 versus 2021.

• Jafurah unconventional gas: The largest liquids-rich unconventional gas development in the Middle East 229 trillion scf of raw gas, lifecycle investment exceeding US$100 billion. First shale gas was produced in December 2025, ramping toward ~2 billion scf/day of sales gas by 2030, plus substantial ethane and liquids.

• Master Gas System (MGS) Phase 3: Part of a broader US$25 billion strategic gas programme executed across 17 EPC packages, adding roughly 3-3.2 billion scf/day of capacity and extending the East-West pipeline system, a multi-year source of demand for large-diameter line pipe and coating.

• Aramco capital discipline: capital investment of US$52.2 billion in 2025 (in line with guidance) and 2026 guidance of US$5055 billion, with 65-70% directed to upstream projects, underpinning sustained, multi-year spend on gas-gathering, processing and transmission infrastructure even through a lower oil-price environment.

The Kingdoms ability to manage acute supply-chain stress was tested during the early-2026 Strait of Hormuz disruption, when cumulative regional liquids-supply losses exceeded 1.4 billion barrels. Saudi Aramcos East-West Pipeline (Petroline) was sharply ramped up during the disruption to reach its maximum capacity of 7.0 million barrels per day in Q1 2026, supporting crude exports via the Red Sea and demonstrating the strategic value of cross-Kingdom pipeline redundancy that bypasses the Strait, reinforcing the long-term case for further capacity enhancement and additional cross-country pipeline investment.

Water - Infrastructure for Sustainability & Resilience

• Jubail-Buraydah IWTP: An Independent Water Transmission Pipeline spanning 587 km with 650,000 m3/day capacity and reverse-flow capability, under a private-sector BOOT model, targeting commercial operations toward the end of the decade.

• Water security & desalination: As a global desalination leader, Saudi Arabia continues to scale desalination, bulk water transmission, and reuse under Vision 2030, alongside rainwater-harvesting dam programmes — all requiring large-diameter, corrosion-resistant pipe.

• Desalination scale-up: national desalination capacity has doubled over the past decade to more than 12 million m3/day and is targeted to reach approximately 20 million m3/day by 2030, with roughly 2,000 km of large-diameter pipelines required to evacuate desalinated water to demand centres, reinforcing Saudi Arabias position as the GCCs largest HSAW water-pipe market, structurally supported by IKTVA localisation. Complementing this, the Saudi Water Partnership Company (SWPC) has more than 30 independent water and sewage-treatment PPP concessions worth over SR 60 billion (~US$16 billion) planned till 2030.

These oil-to-water infrastructure developments are central to the Kingdoms Vision 2030 transformation and its push toward sustainability, resilience, and mega-infrastructure build-out.

4.3 United Arab Emirates

• Oil: The UAE is scaling up crude capacity toward 5 million bpd by 2027, driven by offshore expansion (Zakum, Umm Shaif). ADNOC has raised its five-year capital commitment to around US$150 billion through 2030.

• Natural gas: Gas output is set to grow strongly toward gas self-sufficiency, led by the Hail & Ghasha sour-gas development (~1.5 billion scf/day, —US$11 billion of financing), Ruwais LNG, and associated projects. ADNOC Gas continues a multi-billion- dollar capex programme through 2028-2029.

• Hormuz bypass: The new parallel ADCOP / West-East line to Fujairah targets —3.6 million bpd of bypass capacity by mid-2027, a direct source of large-diameter pipe demand.

• Water & desalination: The UAE desalination market is projected to grow from ~US$6.4 billion (2024) to —US$11.2 billion by 2030. Flagship reverse-osmosis plants such as Taweelah (—900,000 m3/day) and Hassyan continue to expand bulk-water conveyance requirements.

4.4 Wider GCC (Qatar and neighbouring states)

Qatar continues to expand its North Field LNG programme, one of the worlds largest, with the temporary curtailment of Qatari LNG during the 2026 conflict reinforcing the strategic case for resilient, diversified export and transmission infrastructure across the Gulf. Kuwait, Oman, and Bahrain are progressing gas-gathering, storage, and water-transmission projects, with demand increasingly shifting toward duplex and super-duplex grades suited to sour-gas and hydrogen-ready service areas that favour technically capable, certified suppliers.

4.5 Central Asia and the Caspian

Central Asia holds some of the worlds largest gas reserves and is pursuing multiple long-haul export corridors, each representing potential large-diameter line-pipe demand. The 2026 disruption to Gulf energy flows has added fresh urgency to routes that bypass both the Strait of Hormuz and traditional Russian transit:

• Trans-Caspian Pipeline (TCP): Would carry Turkmen and Central Asian gas across the Caspian to Azerbaijan and into the Southern Gas Corridor to Europe. Designated an EU Project of Common Interest, it gained momentum at Baku Energy Week in June 2026, though legal and geopolitical hurdles remain.

• Turkmenistan-China (Line D): In April 2026, Turkmenistan signed a US$5.1 billion, four-year agreement with CNPC to expand the giant Galkynysh field by ~10 bcm/year for the planned Line D pipeline, part of a goal to ship up to 65 bcm/year to China.

• TAPI (Turkmenistan-Afghanistan-Pakistan-India): The ~1,800 km, 33 bcm/year corridor continues to advance in stages, with periodic agreements to accelerate delivery.

4.6 Southeast Asia & the Far East

Southeast Asia remains a high-growth energy market where natural gas is the primary growth engine and water-security investment is rising across coastal metros. Independent studies project the region will become a net LNG importer around 2032, driving major investment in regasification, connection pipelines, and gas-fired power; dozens of upstream and midstream projects across Indonesia, Malaysia, Vietnam, and Thailand are in execution, with regional upstream investment forecast to rise from ~US$5 billion (2021) to over US$30 billion by 2027.

Renewed emphasis on the Trans-ASEAN Gas Pipeline and LNG-pipeline hybrid links aims to strengthen cross-border resilience. More broadly, Asia-Pacific is expected to hold the largest share of the global gas-pipeline-infrastructure market (~34%) and the highest growth rate (~8% CAGR), led by Chinas transmission expansion, Indias CGD build-out, and Japanese/Korean LNG-connection investment. Urban water security, desalination, reuse, and bulk transmission across Singapore, the Philippines, Indonesia, and Vietnam provide a further layer of pipe demand.

5. Strategic Importance of the National Pipe Company (NPC) Acquisition

On 21 May 2026, the Company, through its wholly owned subsidiary MISIC, completed the acquisition of 100% of National Pipe Company Limited (NPC), Saudi Arabia, its first-ever cross-border acquisition and a defining strategic move in building an integrated, multi-country pipeline-solutions platform. The rationale for the transaction, and the value it is expected to unlock, is set out below.

NPC — Deal at a Glance	Detail
Acquirer	MISIC (wholly owned subsidiary of the Company)
Consideration	US$102 million ( Rs.1,000 crore)
Funding	US$70 million debt + balance from internal accruals
NPC capacity	430,000 MTPA (HSAW + LSAW)
NPC balance sheet	Debt-free; US$83 million cash and liquid assets
Entry multiple	1.5x EV/EBITDA (vs. Saudi listed-peer multiples of 7-9x)
Location	Dhahran (plant); Al Khobar (office)
Certification	Aramco-approved, API-certified; two-decade Aramco relationship

Why Saudi ArabiaRs.

Saudi Arabia sits at the centre of the Companys export strategy, as set out in Section 4.2, a multi-decade, Vision-2030-anchored gas- expansion super-cycle (Jafurah, the Master Gas System) backed by Aramco capital spending of US$50-55 billion guided for 2026, alongside a large desalination and water-transmission build-out. For a line-pipe manufacturer, in-Kingdom presence is materially more valuable than serving the market purely on an export basis: it earns localisation credit in tender scoring, shortens lead times and logistics costs, and provides direct access to a demand pool that is structurally larger and stickier than almost any other market the Company serves.

Why NPCRs.

NPC was selected over greenfield entry or other targets because it is an established, cash-generative, already-qualified counterparty rather than a distressed asset requiring turnaround. It brings 430,000 MTPA of HSAW and LSAW capacity, a debt-free balance sheet with approximately US$83 million of cash and liquid assets, and most importantly a two-decade relationship with Saudi Aramco as an approved, API-certified supplier. Acquiring this vendor status directly was significantly faster than the multi-year process of qualifying a new entrant within Aramcos approved-supplier framework.

Strategic Rationale

The acquisition transforms the Company from an India-based exporter into an integrated, multi-country manufacturing platform. Combined Group line-pipe capacity now stands at approximately 1.63 million MTPA (1.2 million MTPA in India plus NPCs 430,000 MTPA in Saudi Arabia), diversifying the Companys manufacturing footprint, currency exposure, and regulatory risk beyond a singlecountry base for the first time, while directly addressing the Companys single largest export market from within the market itself.

Synergies

The combination creates a broader, shared bid pipeline across India and Saudi Arabia, with the flexibility to route orders to whichever facility offers the better capacity fit, specification match, or logistics cost. NPC carried an order book of approximately US$120 million at the time of the acquisition, adding immediate revenue visibility to the combined group. Beyond order-book pooling, the Group is aligning quality systems, API certification processes, and technical standards across both facilities, and will coordinate procurement and logistics where the two operations can benefit from shared scale.

The IKTVA Advantage

Saudi Aramcos In-Kingdom Total Value Add (IKTVA) programme scores suppliers on local content, in-Kingdom manufacturing, and Saudi employment as part of tender evaluation, a framework that structurally favours bidders with a genuine in-Kingdom manufacturing base over pure exporters, as discussed in Sections 4.1 and 4.2. NPCs Dhahran plant gives the Group direct IKTVA credit that is not available to an India-only exporter, a material and durable scoring advantage in Aramco and broader GCC tenders that a purely export-based strategy could not replicate.

Access to the Aramco Ecosystem

NPCs approximately two-decade relationship as an Aramco-approved, API-certified vendor gives the Group an immediate, qualified route into the worlds largest single gas-capital-expenditure programme Aramcos Jafurah and Master Gas System build-out (Section 4.2) without needing to complete a fresh, multi-year vendor-qualification process. This compresses the Groups time-to-market in its most important addressable region from years to effectively immediate.

Margin Improvement

The transaction was completed at an entry multiple of approximately 1.5x EV/EBITDA, a significant discount to Saudi listed-peer multiples of 7-9x and is expected to be EPS-accretive from Day 1. Beyond the accretive entry valuation, further margin upside is expected from operating leverage as the combined bid pipeline fills capacity at both facilities, and from the planned Dammam coating facility (below), which shifts the Groups Saudi revenue mix toward higher-value, integrated pipe-plus-coating scope rather than bare pipe alone. Reflecting this strengthened financial profile, the Companys credit rating was upgraded to CRISIL A+/Stable during the year.

Export Hub

Beyond serving Saudi domestic demand, NPCs Eastern Province location, in proximity to major Gulf ports positions it as a platform to serve wider GCC and MENA demand, including the UAE, Qatar, and potential regional reconstruction opportunities discussed in Section 4.1, from an in-region base. This complements, rather than replaces, the Companys India-origin export franchise, giving the Group two manufacturing bases from which to serve overlapping but distinct customer sets across the Middle East, Africa, and Asia.

Future Expansion

The Company plans to invest approximately US$45 million in a dedicated pipe-coating facility at Dammam, which is intended to create a fully integrated pipe-plus-coating platform in the Kingdom and further strengthen the Groups competitive position in Aramco and broader GCC tenders. Over time, the NPC platform is expected to serve as a base for further capacity, product-grade, or geographic expansion within Saudi Arabia and the wider Gulf, subject to demand visibility and the Groups capital-allocation priorities.

"NPC is the cornerstone of the Companys transformation from an India-based exporter into an integrated, multi-country pipeline- solutions group. Combining an accretive entry valuation, a debt-free and cash-generative target, a two-decade Aramco relationship, and direct IKTVA-scored in-Kingdom manufacturing, the acquisition is expected to compound in value as the Groups combined bid pipeline, coating capability, and Gulf-wide reach mature positioning Man Industries to capture a structurally larger share of the worlds most important line-pipe growth market over the coming decade."

6. Outlook on the Global Hydrogen Pipes Industry

The global push toward decarbonisation is accelerating the development of hydrogen as a key energy carrier of the future. Governments and industry across Europe, Asia, and North America are investing heavily in large-scale hydrogen transport and distribution infrastructure, with a significant share directed toward pipelines and midstream assets. While market estimates vary across research firms, there is broad consensus that hydrogen-transmission infrastructure will experience double-digit growth over the coming decade.

Industry Trends

• Europe: The European Hydrogen Backbone envisions more than 40,000 km of hydrogen pipelines by 2040, repurposing existing gas networks while adding dedicated infrastructure.

• Asia: Japan and South Korea are advancing hydrogen import corridors; Indias National Green Hydrogen Mission targets 5 MMT of annual production capacity by 2030, requiring a supporting pipeline network and safe blending across its ~33,000 km gas grid.

• North America: Policy support continues to spur investment in hydrogen hubs and associated transmission pipelines.

Hydrogen pipelines demand specialised high-grade steel and coatings to withstand embrittlement, permeability, and high-pressure transmission. Manufacturers with advanced R&D capabilities and a proven track record in energy pipelines are well positioned to benefit, though many announced projects have yet to reach final investment decisions.

7. Indian Oil & Gas Industry and Pipeline Infrastructure

India remains one of the worlds fastest-growing energy markets. As the third-largest energy consumer and a major crude importer, it continues to strengthen energy security through investment in exploration, refining, strategic reserves, natural-gas infrastructure, and cleaner fuels. According to OPEC estimates, Indias oil demand is expected to rise to approximately 6 million barrels per day in 2026, one of the largest contributors to global demand growth, driven by robust economic activity, urbanisation, industrialisation, and rising mobility.

Samudra Manthan: National Offshore Exploration Scheme

In a landmark development, on 31 July 2026 the Union Cabinet approved Samudra Manthan the National Offshore Exploration Scheme, a Central Sector Scheme of the Ministry of Petroleum & Natural Gas with an outlay of Rs.84,084 crore for implementation through FY 2030-31. Translating the Prime Ministers Independence Day 2025 vision of a modern-day Samudra Manthan, the scheme aims to accelerate deepwater and ultra-deepwater exploration across Indias Exclusive Economic Zone, strengthen energy security, and reduce import dependence and is expected to catalyse reserve accretion of over 600 million metric tonnes of oil equivalent (MMTOE).

The scheme spans the full offshore value chain, large-scale seismic-data acquisition, accelerated exploratory and scientific drilling in frontier basins, and shared common infrastructure while explicitly promoting indigenous manufacturing under Make in India and Atmanirbhar Bharat. A sustained ramp-up in offshore exploration and the field developments that follow are expected to generate medium-term demand for offshore and subsea line pipe, risers, and specialised anti-corrosion coatings, adding a significant new domestic growth vector alongside the onshore gas-grid build-out.

One Nation, One Gas Grid: Accelerating the Pipeline Build-Out

Natural gas is central to Indias clean-energy transition, with the Government aiming to raise its share in the energy mix from ~6% to 15% by 2030. The Petroleum & Natural Gas Regulatory Board (PNGRB) has authorised approximately 34,233 km of natural-gas pipeline network, of which around 25,429 km was operational as of mid-2025 and a further ~10,459 km is under construction advancing toward a completed national grid of roughly 35,000 km. Several enabling measures were progressed during the year:

• New trunk-pipeline authorisation: In April 2026, PNGRB authorised Indian Oils Kochi-Kanyakumari-Thoothukudi Pipeline (KTPL) approximately 425 km with 6.84 MMSCMD capacity to evacuate regasified LNG from the Kochi terminal across Kerala and southern Tamil Nadu, strengthening the southern grid.

• Unified tariff (One Nation, One Grid, One Tariff): A revised unified tariff structure took effect on 1 April 2026, lowering the delivered cost of gas for distant consumers and improving the economics of long-haul trunk pipelines.

• Viability Gap Funding & pricing freedom: VGF support for trunk pipelines in low-demand regions, alongside marketing and pricing freedom for deep-water, ultra-deep-water and HP/HT gas, continues to de-risk new pipeline investment.

• City Gas Distribution (CGD): With around 307 geographical areas authorised near-complete population and area coverage the CGD roll-out sustains a large, multi-year build-out of steel distribution and spur-line networks.

Source: PNGRB. Operational as of mid-2025; ~10,459 km under construction toward the national grid.

Exploration, Production & Policy Reforms

• Samudra Manthan: The Rs.84,084 crore National Offshore Exploration Scheme (detailed above) is the single largest recent upstream commitment, targeting deepwater and ultra-deepwater development.

• OALP Round IX: 28 exploration blocks covering ~1.36 lakh sq km were awarded in April 2025, taking cumulative awards to 144 blocks across eight concluded Open Acreage Licensing Policy rounds.

• Oilfields (Regulation & Development) Amendment Act, 2024: Modernised hydrocarbon definitions and streamlined approvals to attract exploration and production investment.

• Refining expansion: India targets refining capacity of around 310 million tonnes per annum by 2028 (Pachpadra, Paradip, Bina, and integrated complexes), each requiring associated crude, product and utility pipelines.

Capital Commitments: CGD, Hydrogen & Named Pipeline Projects

Beyond the national grid build-out, capital commitments are also scaling in adjacent segments. An estimated Rs.40,000 crore of investment is planned in the City Gas Distribution sector through 2034, while hydrogen transportation is emerging as a distinct capital pool, the National Green Hydrogen Mission carries a policy outlay exceeding Rs.19,700 crore, with total ecosystem investment estimated at approximately Rs.8 lakh crore by 2030 as hydrogen demand scales toward 15-20 MMTPA, led by refining, fertilisers, and steel. Several named cross-country pipeline projects are progressing in parallel, including GAILs Jamnagar-Loni LPG pipeline, ONGCs Mumbai-Uran pipeline, the Siliguri-Mughalsarai crude-oil pipeline, and IGGLs North-East Gas Grid Phase IV, each expanding the countrys LPG, crude, and natural-gas transportation footprint and sustaining demand for line pipe across multiple hydrocarbon applications.

On the demand side, Indias natural gas consumption is projected to rise approximately 60% by 2030 to around 103 bcm per annum, requiring LNG imports to more than double to roughly 65 bcm per annum; LNG import capacity is correspondingly set to expand from about 52.7 MMTPA (8 terminals) to 86.9 MMTPA (13 terminals). Domestic petroleum-product consumption reached approximately 235 MMT in FY 2025-26, up 3.2% year-on-year, reinforcing the case for continued investment in refining, storage, and pipeline evacuation infrastructure alongside the refining capacity expansion toward 310 MMTPA by 2028.

8. Indian Water Sector Outlook

Water Stress & Quality Challenges

• Indias per-capita water availability has fallen below the global water stress threshold of 1,700 m3 and is approaching the scarcity level; nearly 600 million people live under high-to-extreme water stress, with demand projected to exceed supply twofold by 2030.

• Water-quality concerns remain severe, with a large share of surface water contaminated reinforcing the need for treatment, reuse, and bulk-transmission infrastructure.

Jal Jeevan Mission 2.0: Extended and Enhanced

In March 2026, the Union Cabinet extended the Jal Jeevan Mission to December 2028 and enhanced its total outlay to Rs.8.69 lakh crore (central assistance of Rs.3.59 lakh crore, an additional Rs.1.51 lakh crore). With rural tap-water coverage having reached 82.09% (approximately 15.89 crore of 19.36 crore rural households) as of 18 July 2026 — up from a baseline of 3.23 crore households in 2019 — JJM 2.0 shifts emphasis from asset creation toward service delivery, source sustainability, and a unified Sujalam Bharat digital framework sustaining demand for distribution pipes, treatment plants, and bulk-transmission networks across rural India.

River Interlinking: From Plan to Execution

Indias National River Linking Programme is moving decisively from plan to execution. The flagship Ken-Betwa Link (~Rs.44,605 crore) is under construction following its December 2024 foundation, and the Parbati-Kalisindh-Chambal (PKC) Link (~Rs.72,000 crore) launched the same month under a tripartite agreement between the Centre, Madhya Pradesh and Rajasthan will build 21 dams, barrages and reservoirs to supply drinking and industrial water to 13 districts. These and other planned links require large- diameter, pressurised pipelines for long-distance, inter-basin transfer, together with advanced anti-corrosion coatings for high- stress applications.

The River Interlinking programme, led by the Ministry of Jal Shakti through the National Water Development Agency, spans 30 identified links (16 peninsular and 14 Himalayan). As of February 2026, Pre-Feasibility Reports were complete for all 30 projects, Feasibility Reports for 26, and Detailed Project Reports for 13- indicating a pipeline of projects moving steadily from planning into execution over the coming years. Beyond Ken-Betwa and PKC, the erstwhile Eastern Rajasthan Canal Project has been integrated with the Parbati-Kalisindh-Chambal link (now also referred to as the Ramjal Setu Link) to enhance water security across 17-23 districts of eastern Rajasthan, involving the Navnera Barrage, aqueducts, and pumping systems serving more than 3.45 crore people.

Urban Water, Reuse & Desalination

• AMRUT 2.0 & PPPs: Continued investment across urban water-supply networks, sewerage, STPs, treatment plants and reuse, supported by innovative financing such as green municipal bonds.

• Desalination & bulk transmission: Growing coastal desalination and treated-water conveyance are expanding demand for corrosion-resistant intake, outfall and bulk-transmission pipe.

• Reuse & conservation: National campaigns and decentralised reuse projects continue to scale zero-liquid-discharge, water recycling and aquifer recharge.

"The scale of Indias water build-out over the past year, the Rs.8.69 lakh crore Jal Jeevan Mission 2.0, the Ken-Betwa and Rs.72,000 crore Parbati- Kalisindh-Chambal river-linking projects, and continued AMRUT2.0 and desalination investment translates into sustained demand for large-diameter, high-performance, corrosion-resistant pipelines. With proven expertise in oil, gas, and hydrogen transportation, Man Industries is well positioned to capitalise on these opportunities, strengthening its role as a partner in Indias water-security and nationbuilding agenda."

9. Domestic Stainless-Steel Market: Outlook & Key Growth Drivers

Indias stainless-steel consumption reached approximately 4.8-4.9 million tonnes in recent years, growing around 8% year-on-year. Per-capita usage of ~3.4 kg remains well below the global average of over 6 kg, underscoring significant long-term potential, with consumption expected to expand at a 7-9% CAGR supported by infrastructure, transportation, construction, and process industries.

Growth Drivers

• Railways & transport: Adoption of high-strength stainless in Vande Bharat and new coach platforms, metros, and wagons.

• Urban infrastructure & water: Expanding use in pipelines, bridges, fagades, utilities, municipal water, STPs, and desalination, supported by the BIS Quality Control Order for stainless pipes and tubes.

• Process industries & energy transition: Food & beverage, pharma, and chemicals scaling capacity; green-hydrogen, biofuel, and renewable projects adopting advanced, chloride- and temperature-resistant alloys.

• Policy tailwinds: Raw-material duty relief (ferro-nickel, molybdenum, ferrous scrap), enforcement of BIS steel standards, and trade safeguards on flat-steel imports support domestic producers.

The domestic stainless-steel market enters FY26 on a strong footing, with growth expected in the mid-to-high single digits through FY27 and upside from faster infrastructure execution and continued substitution of carbon steel by stainless steel.

"With its foray into stainless-steel seamless (mother and pilgered) pipes through the greenfield plant at Jammu, Man Industries is stepping into a premium, import-substituting segment that underpins high-precision tubular products. This strategic move enhances value addition, widens the Companys product portfolio, and strengthens its position to serve fast-growing sectors in both domestic and international markets"

10. Global & Indian Steel Industry, Raw Materials & Trade Environment

Steel plate and hot-rolled coil (HRC) are the primary raw materials for SAW line pipe, typically accounting for the large majority of production cost. The health, pricing, and trade dynamics of the steel industry therefore directly shape pipe-manufacturing economics and are set out here as a distinct driver of the business.

Global & Indian Steel Landscape

• India- second-largest producer: India is the worlds second-largest crude-steel producer, with crude-steel output of around 151 million tonnes and finished-steel consumption of about 150 million tonnes in FY25, against installed capacity of roughly 200 million tonnes. Under the National Steel Policy 2017, capacity is targeted to reach 300 million tonnes by FY 2030-31, supported by strong construction, infrastructure, and manufacturing demand.

• Pipes as a leading export: Steel pipes and tubes featured among Indias top five finished-steel export products in FY26, reflecting the global competitiveness of Indian pipe manufacturing.

• Soft global prices: Global steel markets remain broadly oversupplied, with subdued Chinese demand keeping international HRC and plate prices soft, a mixed picture that supports pipe-conversion spreads on the input side while intensifying competition on finished-pipe exports.

Raw-Material Pricing & Margin Dynamics

Line-pipe manufacturers largely operate on an order-linked, back-to-back procurement model, buying plate and HRC against confirmed orders to limit price exposure; in many export contracts, steel is buyer-supplied or price-linked, further insulating conversion margins. HRC and plate price volatility nonetheless affects working-capital intensity and competitiveness, and the softer global steel prices seen through FY26 were broadly supportive of conversion spreads.

11. Global Line-Pipe Market Outlook: LSAW & HSAW

Submerged Arc Welded (SAW) pipe comprising Longitudinal (LSAW) and Helical/Spiral (HSAW) pipe forms the structural backbone of the worlds oil, gas, and water transmission networks and is the Companys core product family. The global SAW pipe market is estimated at around US$12.8 billion in 2025 and is projected to reach approximately US$21.4 billion by 2034, a compound annual growth rate of about 5.9%, driven by energy-infrastructure investment, expanding water-transmission networks, and growing offshore pipeline activity.

Market Size & Growth

Demand is underpinned by natural-gas and LNG infrastructure, cross-country transmission programmes, and a global push toward water security that is driving large-diameter water-transmission investment across Asia, the Middle East, Africa, and Latin America. More than 60% of new cross-country transmission lines are built in the 508-1,016 mm (20-40 inch) diameter classes- the Companys core range.

Global SAW pipe market, 2025-2034E. Source: industry research (Dataintelo, 2026); indicative estimates.

Product Mix: LSAW vs HSAW

LSAW pipe accounted for an estimated 58% of the SAW market in 2025 and HSAW for around 42%. LSAW pipe produced by the UOE or JCOE process is preferred for high-pressure, large-diameter, and offshore oil & gas transmission, and increasingly for high-strength (X70/X80) and sour/hydrogen-ready service. HSAW (spiral) pipe, typically used for onshore transmission, water transmission, and structural/piling applications, is the faster-growing sub-segment (forecast CAGR of around 6.4%), supported by water-security and lower cost per tonne for large diameters.

Demand by Application & Segment Growth

Oil & gas transmission remains the largest application for SAW pipe, followed by water supply and transmission (the fastest-growing end-use in several regions), construction/structural, and other industrial uses. Across segments, HSAW is expected to grow fastest, while the Middle East line-pipe market, the Companys most important export region, is forecast to expand at around 3.4% CAGR off a large base.

Industry Trends in LSAW & HSAW

• Grade upgrading rising adoption of high-strength API grades (X70, X80, and higher) for higher-pressure, thinner-wall, weight- optimised pipelines.

• Sour and hydrogen-ready service: growing demand for HIC/SSC-resistant and hydrogen-compatible pipe as sour-gas fields and hydrogen blending expand.

• Large-diameter and offshore/deepwater: a continued shift toward larger diameters and thick-wall LSAW for deepwater and long-distance transmission.

• Integrated coatings: anti-corrosion (3LPE/3LPP), internal-flow, concrete-weight, and thermal-insulation coatings are an increasing share of value addition.

• Localisation & trade barriers: in-country content mandates (Saudi IKTVA, UAE ICV) and tariffs (US Section 232) are steering demand toward regional and tariff-advantaged supply.

• Competition at smaller diameters: ERW/HFW and, in water, ductile-iron and composite pipe compete at smaller diameters, keeping SAW focused on large-diameter, high-spec work.

• Digitalisation: automation, real-time weld monitoring, and digital traceability are raising quality and productivity across mills.

"The global LSAW and HSAW markets are set for steady, multi-year growth of roughly 5-6%, led by energy-transmission and water

Infrastructure, with HSAW growing fastest and large-diameter, high-strength, sour- and hydrogen-ready pipe commanding rising value.

With approximately 1.2 million MTPA of Indian LSAW and HSAW capacity, NPCs 430,000 MTPA in Saudi Arabia, integrated coating capability, and API certifications across grades, Man Industries is well positioned to capture demand across the full LSAW-HSAW spectrum in its core export and domestic markets."