Zenith Birla eyes gas pipeline

Zenith Birla (India) Limited is eyeing the oil and gas pipeline market in the US and West Asia.

Yash Birla, chairman, Yash Birla group, said the difference in the cost of production of pipes for oil and gas in India and the US will help the Birla group fare well overseas.

Zenith has a production capacity of 120,000 MT of pipe, of which 25,000 MT is being converted into oil and gas pipeline. Birla said the company has licence to manufacture grade pipes of 8" diametre approved by the American Petroleum Institute (API). Zenith Birla will manufacture Electric Resistance Welded (ERW) pipes for the gas and oil industry in the US and West Asia, said Birla.

The group plans to set up a manufacturing facility for mechanical tubes which is used mainly in automobile industry. The company has announced its follow on public offer of 2,38,18,182 equity shares of face value of Rs 10 each for cash at a premium of Rs 45 per share, aggregating Rs 13,100 lakh.