Megha Engg setting up pipe manufacturing plant

Hyderabad-based infrastructure company Megha Engineering and Infrastructure Limited (MEIL) is setting up a mild steel spiral pipe manufacturing plant near here at an investment of about Rs 250 crore.

The company has signed an agreement with a South Korean firm in this regard and is expecting to start production by mid October.

The plant will make 500-700 metre long pipes per day up to 3,000 mm dia. The company would fund the project through internal accruals and institutional loans, said MEIL vice-president B Srinivas Reddy. The pipeswould be used for irrigation purposes and drinking water network among others.

The company, which recently bagged a Rs 2,400-crore ONGC order for revamping oil and gas production facilities at the Lakwa oilfields in Assam, is now looking to expand its footprint to road and building projects, he said, adding that it will go public next year.

 

On Friday, Megha Fibre Glass Limited, a subsidiary of MEIL, commissioned south India’s first glass-fibre reinforced plastics pipes at its new plant at Pashamylaram near Patancheru here.

The total cost of the plant is estimated at Rs 500 crore of which the company has already invested Rs 200 crore. The plant would produce pipes up to 2,000 mm dia. Two more wings of the plant will be set up shortly in Hyderabad.

The company is expecting a revenue of Rs 500 crore by next year from the glass-reinforced plastic segment as the market for these products is estimated at Rs 2,000 crore. MEIL registered a turnover of about Rs 2,000 crore last year. The company’s order book stands at Rs 1,000 crore.