DEE Development jumps on partly commissioning Rs 250-cr Gujarat unit

DEE Development Engineers advanced 5.06% to Rs 315.55 after the firm commissioned 2nd phase of its manufacturing plant in Anjar, Gujarat, enhancing the capacity by 9,000 MT per annum.

The facilitys total operational capacity now stands to 12,000 MT per annum and it shall primarily cater to the jobs of oil and gas piping sector.

Krishan Lalit Bansal, chairman said, The total investment in this facility amounts to Rs 250 crore. Of this, Rs 160 crore will be allocated to the process piping solutions plant, which has an annual capacity of 27,000 metric tons. Till now the capacity of 12,000 MT has been commissioned and company is contemplating to enhance the balance capacity of 15,000 MT shall be commissioned by October 2025.

 

Additionally, Rs 90 crore will be invested in establishing a seamless pipe manufacturing facility specializing in high wall thickness pipes, with a planned annual production capacity of 7,000 metric tons. This seamless pipe facility is expected to be commissioned by January 2026.

The facility is a key element of DEE Development Engineers' long-term growth strategy, aimed at catering to the increasing demand for high-quality process piping solutions and high wall thickness pipes, he added.

Bansal added that over the next three to five years, the company is targeting a three-fold increase in revenue. The facility will drive operational efficiency and enhance the EBITDA margin.

Market research projects a 7% annual growth rate for the sector over the next decade, driven by technological advancements and rising demand for oil, gas, and hydrogen solutions, stated the company. The new facility will enable it to effectively meet the rising demand for high-quality process piping solutions and thick seamless pipes, positioning to benefit from orders within this industry.

The company anticipates reaching its full production capacity of 27,000 metric tons of process piping solutions by 1 October 2025, with seamless pipe production slated to begin effective from 1 January 2026.

Dee Development Engineers (DDEL) is an engineering company providing specialized process piping solutions for industries such as oil and gas, power (including nuclear), chemicals and other process industries through engineering, procurement and manufacturing.

The companys consolidated net profit surged 125.1% to Rs 22.26 crore in Q2 FY25 as against Rs 9.89 crore posted in Q2 FY24. Revenue from operations rose 8.6% YoY to Rs 194.02 crore in the quarter ended 30 September 2024.

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