Welspun Corp to invest $100 million in US subsidiary

3 Sep 2024 , 03:14 PM

Welspun Corp Ltd (WCL) announced on Monday (September 2) that its board has approved an investment of about $100 million to expand the high-frequency induction welding (HFIW) pipe manufacturing and coating capabilities of its wholly owned subsidiary, Welspun Pipes Inc, in the United States.

The investment intends to strengthen Welspun’s product portfolio in the US market and will be funded by a combination of local debt and internal accruals. The renovation should be finished within the next 18 months.

This investment will help Welspun expand its leadership position in the US oil and gas segment by diversifying its product portfolio, which will include pipe sizes up to 24-inch outside diameter and 0.750-inch wall thickness with grades up to x80 for a capacity of 350 KMTPA, according to the company.

We see very strong demand and future growth potential for this size range, which will help us further strengthen our position in the oil, liquids, gas, and distribution markets, as well as make a significant mark in the expanding hydrogen and carbon capture applications market in North America, said Welspun Corp.

Welspun Corp reported a 50% YoY increase in net profit to ₹248.2 Crore for the first quarter ended June 30, 2024. In the quarter, Welspun Corp reported a net profit of ₹165 Crore, according to a regulatory filing.

At around 2.23 PM, Welspun Corp was trading 0.17% lower at ₹697, against the previous close of ₹698.20 on NSE. The counter touched an intraday high and low of ₹705.95, and ₹695.85, respectively.

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