The Gujarat Industrial Investment Corporation (GIIC) has decided to pick up a 11 per cent stake in the Welspun group company, Welspun Stahl Rohren. GIIC would be investing Rs 11 crore in the proposed Rs 100-crore paid up capital of the firm.
The German plant ,Intertec, will also be investing around Rs 9 crore in the equity of Welspun Stahl Rohren in addition to providing technical and marketing support for Welspun Stahl Rohren's submerged arc welded pipe (SAW) plant at Dahej, Gujarat.
This project is expected to be set up at an estimated cost of Rs 192 crore. The group forayed into manufacturing of SAW pipes following the government's opening up of the infrastructural industries to the private sector in 1995. SAW pipes are used in the transmission of natural gas and transport of crude.
Demand for SAW pipes is estimated at 13 lakh tonne per annum within the country while the installed capacities of the various plants manufacturing SAW pipes is just 3 lakh tonne per annum.
Welspun Stahl Rohren expects a turnover of Rs 323.25 crore in 1998 and Rs 377.12 crore in 1999 with net profits of Rs 27.50 crore and Rs 31.89 crore respectively.
