Jindal Saw Limited aims to capture $200 million OCTG market that is completely dependent on foreign imports.
Make in India: Leading manufacturer of industrial pipes and fittings, Jindal Saw Limited has partnered with UK based Hunting Energy for producing high-end Oil Country Tubular Goods (OCTG) like oil tubes, oil pipe connections and fittings at its Nashik plant. Under the strategic partnership, Hunting Energy will provide technical know-how and Jindal Saw will be its manufacturing partner, said Neeraj Kumar, Group CEO of the company as it aims to capture $200 million OCTG market, completely dependent on foreign imports.
“India’s demands for seamless pipe with premium connections has till now been covered through imports. Now with this partnership for manufacturing of seamless pipes in India, the nation can look at reduction in their imports,” said Jim Johnson, CEO of Hunting PLC.
Oil industry requires high-end tubes and fittings to be used in oil wells and oil rigs both onshore and offshore. Crude oil and gas producing companies like ONGC, Reliance Industries, Cairn India and others have been importing these high-end seamless fittings from abroad. Now Jindal Saw will produce them in the country under the Prime Minister Narendra Modi’s flagship Make in India’ scheme.
“The alliance will be a step forward in the Union government’s Make in India initiative,” said PR Jindal, chairman of Jindal Saw Limited.
However, the partnership will not entail any foreign direct investment in the country by Hunting Energy. Jindal Saw will also not make any new investment in its plants. The company will use its existing assembly lines at its Nashik plant for producing high-end seamless oil casings under the transfer of technology from Hunting Energy.
“Existing capacity would be enough. But as the market expands there may be a need for a new assembly,” said Neeraj Kumar, Group CEO of Jindal Saw Limited.
“This partnership will lead to import substitution and as the market expands we may consider setting up new assembly lines,” he told Financial Express Online, adding that the company decided to partner with Hunting Energy as it holds a large number of patents for this technology.