Venus Pipes & Tubes Ltd Management Discussions

The global stainless-steel industry is witnessing strong growth, driven by technological innovation and a shift towards sustainability. Despite challenges like raw material costs and regulatory pressures, the outlook remains positive due to steady demand and adoption of eco-friendly manufacturing.

India stands as a key player in the global stainless-steel market, with a robust ecosystem comprising large corporates, mid-sized companies, public sector units, and a wide network of MSMEs spread across the country. The industry is deeply integrated with global markets, both in terms of sourcing raw materials and exporting finished products. Domestic stainless-steel prices are closely linked to global trends, influenced by international stainless-steel prices and raw material costs.

In this context, Venus Pipes & Tubes Limited (also referred to as Venus Pipes, Venus or The Company) is pursuing a clear strategy of product and market diversification, focusing on value-added and critical application segments. Leveraging its technical strengths, approvals, and backward integration, the Company is securing large, high-value orders and expanding exports rapidly. While cost pressures and subdued domestic demand persist, the Company is confident of sustaining high growth and increasing margins, backed by a strong order book and ongoing capex. The Company is well-positioned to benefit from domestic capex recovery and global supply chain realignment.

The Big Picture: Understanding the Global Economic Framework

In 2024, the global economy experienced moderate growth of 3.3%, indicating a period of relative stability. However, underlying momentum remained subdued. As 2025 unfolds, the global environment is undergoing a marked transformation, driven by a reorientation of policy priorities as countries confront escalating geopolitical tensions and increasing economic pressures.

Strategic Shifts in Global Trade Policy

In April 2025, the US enacted a major shift in trade policy by introducing a uniform 10% minimum tariff on all imports, citing a national emergency linked to unfair foreign trade practices. This sweeping measure impacted most trading partners, with China facing the steepest increase. Under growing diplomatic pressure and rising global instability, the US later suspended additional tariff. This move represents a decisive turn towards protectionism, challenging existing free trade frameworks and introducing significant uncertainty into the global economic landscape, even as it seeks to correct long-standing trade imbalances.

Moderating Inflation Expectations

Amidst this volatility, global headline inflation is now expected to moderate more slowly than previously projected. It is forecasted to ease to 4.3% in 2025 and further to 3.6% in 2026. The revision reflects higher inflationary advanced economies, partially offset by marginal downward adjustments in emerging and developing markets.

Measured Growth in Advanced Economies

Growth prospects in advanced economies are expected to moderate over the forecast period. Under the reference scenario, growth is projected in to decline from an estimated 1.8% in 2024 to 1.4% in 2025, before staging a modest recovery to 1.5% in 2026. In the US, economic growth is expected to ease to 1.8% in 2025, reflecting elevated policy uncertainty, persistent trade frictions, and a deceleration in consumption-led demand. By 2026, growth is expected to reach 1.7%, although continued pressure from tariffs and subdued private consumption is likely to constrain momentum.

Challenges and Resilience in Emerging Markets

In contrast, emerging markets and developing economies are grappling with a distinct set of challenges. Growth is decelerating in several key countries, including Mexico, South Africa, and Argentina, amid rising debt burdens and currency depreciation. These dynamics are amplifying inflationary pressures, while narrowing the space for effective policy intervention. The impact of tighter global financial conditions and weakening investor sentiment is further intensifying macroeconomic vulnerabilities, raising concerns about financial stability and long-term resilience.

Charting the Road Ahead

According to the IMFs World Economic Outlook released in April 2025, the global economy is projected to grow at a steady pace of 2.8% in 2025 and 3.0% in 2026. This represents a slight adjustment from earlier forecasts. Growth continues to be supported by moderating inflation, improving financial conditions, and resilient demand, although the pace of recovery remains uneven across geographies.

Advanced economies, particularly the US, are exhibiting strong resilience, while tighter financial conditions are posing challenges for some emerging markets. A significant drop in inflation several regions has enhanced real incomes and strengthenedconsumer of improvement differs among economies. Despite global uncertainties and varying national trends, the economy remains on a steady path of growth, supported by resilience, adaptability, and sustained momentum.

(Source: https://www.imf.org/en/Publications/WEO/ Issues/2025/04/22/world-economic-outlook-april-2025)

The Indian Growth Story

Indias economy is firmly on a growth path, with the National Statistics Office projecting of 6.5% for FY 2024-25 in its second advance estimates released on 28 th February, 2025. This rate places India ahead of most major economies and reflects momentum supported by resilient domestic fundamentals and proactive policy measures. A blend of structural reforms, rapid technological adoption and large-scale infrastructure investment is fostering broad-based expansion across sectors. The government is coupling these engines of growth with initiatives that promote long-term sustainability, strengthen core industries and advance social development. Improving labour-market conditions and steady consumer demand further brighten the outlook, while solid performances in agriculture and services underpin macroeconomic stability and reinforceinvestor

Revitalising Rural Growth

Indias growth outlook remains closely linked to the performance of its agriculture and manufacturing sectors. Agriculture is expected to rebound with 3.8% growth in FY 2024-25, up from 1.4% the previous year, supported by a favourable monsoon, resilient rural consumption, and policy measures such as the Kisan Credit Card scheme and e-NAM. The Union Budget 2025-26 allocated

1.52 tn to the sector, focusing on credit access, digital infrastructure, and sustainability, while also strengthening allied areas like horticulture and livestock.

Manufacturing Growth Moderates amid Challenges

In contrast, the manufacturing sector saw a moderation in growth to 6.2% from 9.5% in the previous fiscal. The Index of Industrial Production is projected to grow 5.2%, slightly below last years 5.5%. This slowdown reflects both global and domestic headwinds, including weak external demand, cautious inventory buildup, and seasonal disruptions. Despite these challenges, Indias strong macroeconomic fundamentals, fiscal ongoing infrastructure development provide a stable foundation for long-term industrial and rural growth.

Charting the Road Ahead

India is expected to sustain a real GDP growth rate of 6.5% annually from FY 2025-26 to FY 2027-28, supported by strong fundamentals in manufacturing, exports, and digital transformation. Enhanced competitiveness across these sectors, along with a notable increase in services exports, is likely to drive productivity gains and reinforce long-term economic prospects.

However, downside risks persist. A potential global slowdown, particularly in key economies such as the US and China, could weaken external demand. On the domestic front, delays in private sector capital expenditure partly due to concerns over Chinas excess manufacturing capacity may constrain investment momentum. Furthermore, a weakening Chinese Renminbi could adversely impact Indias trade balance.

Despite these challenges, India is well-positioned to benefit from the accelerating adoption of the China

Plus One strategy by multinational corporations.

This shift presents significant opportunities to strengthen Indias role in global manufacturing and supply chains, attracting investment, boosting exports, and generating employment.

(Source: https://economictimes.indiatimes.com/news/ economy/foreign-trade/indias-exports-cross-usd-820-bn-in-2024-25-commerce-ministry/articleshow/120134648. and cms?from=mdr)

How Venus Pipes is Positioned

Indias strong economic growth, large-scale investments in key industries, and government initiatives are creating a favourable environment for Venus Pipes. The company is leveraging these opportunities through capacity expansion, product diversification, and a focus on both domestic and export markets, resultinginrobustrevenueandprofitgrowth.

The Evolving Industry Landscape

Global Stainless-Steel Industry

The global stainless-steel market is projected to grow from US$ 216.16 bn in 2024 to US$ 320.37 bn by 2032, exhibiting a CAGR of 5.0% during the forecast period (2024-32) driven by rising demand across key end-use industries including construction, automotive, process industry and consumer goods.

Key Trends

Technological advancements in sustainable stainless steel are driving market growth, supported by megatrends like urbanization, economic development, mobility, and climate change. Rising emissions have prompted steelmakers to

CO 2

develop durable, recyclable alternatives. Demand is also growing from the real estate and infrastructure sectors seeking strong yet lightweight materials. Government-led infrastructure projects, particularly in developing nations like China and India, are boosting demand. Notably, China is expected to invest around US$ 13 tn in construction by 2030, representing 20% of global investment—offering strong growth potential for the stainless steel market.

Growth Drivers

The stainless steel market is witnessing strong growth, largely driven by its versatile properties that cater to a wide range of industrial applications. Its corrosion resistance and durability make it indispensable in manufacturing sectors for components like pumps, valves, and storage tanks, especially in industries such as chemicals, oil & gas, and food processing where operational reliability is critical. Additionally, the construction and infrastructure sectors significantly contribute to demand, with stainless steel favoured for its strength, longevity, and aesthetic appeal in structural elements, bridges, and modern architectural projects.

The rapid expansion of the automotive industry is another key growth driver. Stainless steels resistance to corrosion and heat, combined with its high strength, makes it ideal for use in various automotive components such as seatbelt springs, chassis, fuel tanks, and catalytic converters. According to the World Steel Association, its usage is expected to rise further with growing technological advancements and the shift towards electric vehicles. As automotive manufacturers continue to prioritise performance and sustainability, stainless steel is emerging as a material of choice, further propelling market growth.

(Source: https://www.fortunebusinessinsights.com/stainless-steel-market-106481)

How Venus Pipes is Positioned Venus Pipes is well-positioned in the growing global stainless-steel industry, leveraging strong demand from key sectors like power, oil & gas, engineering and others. The companys focus on advanced, high-quality products, combined with its adaptability to sustainability trends and technological innovations, supports its competitive edge. While navigating raw material volatility and regulatory challenges, Venus Pipes capitalises on robust domestic growth and expanding export opportunities to drive sustained growth and profitability.

Global Stainless Steel Production

Global stainless steel production in CY 2024 increased by 7% compared to CY 2023 to 62.62 mn tonnes. Over the year, Europe, including Ukraine, increased stainless steel production by 1.5% year on year to 6.09 mn tons. The US increased its output by 6.9% year on year to 1.95 mn tons. In Asia, excluding China and South Korea, stainless steel production last year increased by 6.4% year on year to 7.32 mn tons, and China produced 39.44 mn tons of stainless steel over the same period, up 7.5% year on year. Other countries, such as Brazil, South Africa, Indonesia, South Korea, and the Russian Federation, increased stainless steel production by 9.2% year on year to 7.82 mn tons.

Global Pipes and Tubes Market

The global stainless-steel pipes and tubes market size was valued at approximately US$ 34.16 bn in CY 2024 and is expected to reach US$ 51.87 bn by CY 2033, growing at a compound annual growth rate (CAGR) of about 4.8% from CY 2025 to CY 2033.

Industries such as chemicals, oil & gas, pharmaceuticals, power, and engineering are major consumers of stainless steel pipes and tubes, with healthcare and construction also emerging as key end-user segments. In these sectors, stainless steel is preferred for its exceptional strength, durability, and corrosion resistance—making it ideal for critical applications, including chemical processing, oil and gas transportation, pharmaceutical manufacturing, power generation, and diverse engineering projects.

The Asia-Pacific stainless-steel pipes and tubes market, driven by rising demand from the automotive, chemical, and oil & gas sectors. The automotive industry, in particular, is a key end-user, with the push for fuel-efficient and eco-friendly vehicles expected further accelerate demand for stainless-steel pipes and tubes in the region.

(Source: https://www.businessresearchinsights.com/market-reports/stainless-steel-pipes-and-tube-market-106732)

How Venus Pipes is Positioned

Venus Pipes is strategically positioned to capitalise on the robust growth of the global pipes and tubes market, especially within the stainless-steel segment. Benefiting from rising demand across power, engineering, process industry, and renewable energy sectors, the Company leverages its strong domestic presence and export capabilities. To stay competitive in a fragmented market, Venus

Pipes focuses on quality, innovation, and operationalefficiency, driving sustained growth and market expansion.

Global Welded Pipes Industry

The global welded pipes market (includes carbon, alloy steel and stainless steel) was valued at approximately US$ 229 bn in CY 2024 and is projected to leads in the growth of the reach around US$ 361 bn by CY 2029, exhibiting a compound annual growth rate (CAGR) of about 6.7% between 2024 and 2029. The steady growth of the welded pipes market is primarily driven by the rising use of these pipes in sectors such as maritime, automotive, processing, and medical industries, which will contribute to overall market expansion. The use of alloying elements like magnesium, carbon, and molybdenum in welding enhances the mechanical properties and corrosion resistance of pipes, enabling them to meet stringent industrial standards and specific functional requirements. Unlike typical residential or commercial construction applications, these welded pipes are designed for high-performance, industrial-grade use in harsh environments. Furthermore, tightening regulatory standards in emerging economies and the growing emphasis on safety and durability in industrial infrastructure are expected to further propel market growth throughout the forecast period.

(Source: Market Research Future, Investec Equities Estimates)

How Venus Pipes is Positioned

Venus Pipes is well-positioned in the growing global welded pipes market, particularly within the stainless steel segment, which aligns with rising demand from infrastructure, energy, and industrial sectors. Backed by its strong product quality, technological adaptability, and export readiness, the Company is poised to capture opportunities in high-growth regions like Asia-Pacific. However, it continues to navigate raw material cost pressures and a competitive landscape through operational efficiency and product innovation.

Global Seamless Pipes Industry

The global seamless pipe market (includes carbon, alloy steel and stainless steel) was valued at US$ 62 bn in CY 2024 and is projected to reach US$ 122 bn by CY 2029, growing at a CAGR of 10.3% between CY 2024 and CY 2029. North America currently leads the market, driven by rapid growth in the automotive sector, increasing demand from the construction industry, and the adoption of advanced technologies such as 3D printing.

A key growth driver is the rising demand from the oil and gas industry. As exploration and production activities expand, particularly in deep-water and unconventional reserves, the need for high-strength, corrosion-resistant seamless pipes continues to grow. These pipes are essential for oil and gas pipelines, offshore drilling, process industries and refinery operations due to their superior mechanical strength and durability. With continued investment in energy infrastructure and exploration, the seamless pipe market is expected to maintain strong momentum in the coming years.

(Source: Factmr, Investec Equities Estimates)

How Venus Pipes is Positioned om the robust growth in Indias stainless-steel pipes fr VenusPipesisstrategicallypositionedtobenefit and tubes market, driven by infrastructure development and rising industrial demand. With its focus on quality, direct sales, and capacity expansion, the Company is well-aligned to capture market share amid increasing domestic consumption.

Indian Stainless Steel Industry

Indias stainless-steel market is poised for strong growth, projected to increase from US$ 17,452.5 mn in CY 2024 to US$ 31,905.2 mn by CY 2034, at a CAGR of 6.2% over the forecast period. Western India is expected to account for around 43% of the market share by CY 2034, supported by its well-developed industrial base and easy access to raw materials. The construction and automotive industries are the primary drivers of demand, fuelled by rapid urbanisation and rising vehicle production. Government initiatives like Make in India and large-scale infrastructure projects are further accelerating the adoption of stainless steel across sectors.

(Sources: https://www.futuremarketinsights.com/reports/stainless-steel-industry-analysis-in-india https://stainlesstoday.com/india-stainless-steel-industry-report-2024/ https://www.einpresswire.com/article/821916241/india-stainless-steel-industry-to-hit-usd-31-905-2-million-by-2034-fueled-by-automotive-and-industrial-growth)

Demand Driver

The growth of Indias stainless-steel market is being driven by several key factors. Rapid urbanisation is fuelling large-scale infrastructure projects such as bridges, airports, and residential developments that rely heavily on stainless steel. The expanding automotive industry, supported by rising disposable incomes and a growing middle class, is also contributing to increased demand for stainless steel in vehicle manufacturing. Additionally, the ongoing industrialisation across sectors like chemical processing, oil and gas, and power generation is boosting the need for stainless steel in machinery and equipment. Furthermore, supportive government policies, and initiatives promoting domestic manufacturing and infrastructure development are reinforcing market growth.

Policy Support for Domestic Steel Manufacturing

The Government of India has undertaken several initiatives to create a supportive policy environment for boosting steel production and consumption. Key measures include the implementation of the Domestically Manufactured Iron and Steel Products

(DMI&SP) Policy to promote Made in India steel in government procurement and the Production

Linked Incentive (PLI) Scheme for Specialty Steel, expected to attract 29,500 cr. in investment and add 25 mn tonnes of capacity. To enhance global competitiveness, customs duty on Ferro Nickel has been reduced to zero, and duty exemption on ferrous scrap has been extended till 31 st March, 2026. The Ministry of Steel has issued 16 new safety guidelines and launched SIMS 2.0 for improved import monitoring. Initiatives like Make in India and PM Gati-Shakti are driving steel usage across key sectors such as railways, defence, and infrastructure. Additional efforts include coordination with ministries and states to ensure raw material availability, notification of the Steel Scrap Recycling Policy, and enforcing Quality Control Orders for 145 steel products to ensure quality standards. Infrastructure development is reinforcing market growth.

Budgetary Push and Sustainability Incentives for the Steel Sector

The Government of India has significantly increased infrastructure spending to 11 lakh cr., a 15% rise over the previous budget driving steel demand across construction and transportation sectors. To promote sustainable practices, 5,000 cr. has been allocated under the Green Steel Initiative, targeting a 30% reduction in carbon emissions over the next decade. Import duties on key raw materials like coking coal (from 5% to 2%) and ferroalloys (from 7.5% to 4%) have been reduced to lower production costs and support the Make in India initiative. The PLI scheme for specialty steel has been expanded with an additional 10,000 cr. outlay, aiming to boost domestic output by 20% and reduce import dependency. Additionally, export competitiveness is set to improve with a 10% increase in Remission of Duties and Taxes on Exported Products (RoDTEP) incentives.

(Sources: https://www.accessnewswire.com/newsroom/en/chemicals/india-stainless-steel-market-poised-for-robust-growth-projected-to-reach-usd-31-905.2-mill-941087 https://www.pib.gov.in/PressReleasePage.aspx?PRID=2043647#:~:text=Government%20has%20launched%20Production%20 Linked,concerns%20of%20domestic%20steel%20industry. https://www.ofbusiness.com/press-media/union-budget-2025-2026-highlights-india-steel-industry/148869)

How Venus Pipes is Positioned

Venus Pipes is well-poised to capitalise on Indias rapidly growing stainless-steel industry, backed by rising domestic consumption and strong government-led infrastructure investments. With its focus on diversifica-growth sectors, Venus Pipes is strategically quality,capacityexpansion,and positioned to strengthen its market share and support long-term growth.

Indian Stainless-Steel Pipes and Tubes Industry

The India stainless steel pipes and tubes market was valued at US$ 2.40 bn in 2025, exhibiting a CAGR of 8.9% during the forecast period. Key growth drivers include rising demand from the oil & gas sector, increasing global need for steel pipes, a recovering construction industry post-pandemic, and a thriving transportation sector. Additionally, increased investments in R&D aimed at strengthening production capabilities are supporting market expansion. The oil & gas industry holds the largest share of market revenue, with steel pipes playing a critical role in fluid and gas transfer across multiple applications.

The sector is vital to Indias broader steel industry, accounting for around 8% of total domestic steel consumption. Pipe selection is heavily influenced by factors such as internal diameter, ductility, yield strength, and pressure rating, highlighting the materials importance across industrial applications.

India has imposed a five-year anti-dumping duty on certain welded stainless-steel pipes and tubes from Vietnam and Thailand, following a DGTR investigation that found these products were being dumped at unfair prices, causing injury to the domestic industry. The duty ranges from US$ 246 to US$ 307 per metric tonne, varying by producer and origin, excluding a few.

(Sources: https://www.blueweaveconsulting.com/report/india-steel-pipes-and-steel-tubes-market https://www.6wresearch.com/industry-report/india-stainless-steel-pipes-and-tubes-market-outlook)

How Venus Pipes is Positioned om Indias fast-growing stainless-steel pipes and fr VenusPipesisstrategicallypositionedtobenefit tubes industry, supported by strong demand from infrastructure, automotive, and industrial sectors. With a focus on capacity expansion, product innovation, and operational excellence, the Company is well-equipped to capture emerging opportunities while navigating competitive and cost-related challenges.