Annual Report FY 2009-10 - Welspun

th15 Annual Report 2009-10FAQ SectionPipe Segment1. What is the current capacity in Pipes in India and US? Provide details as per the products? Whether the company is looking for anyfurther expansion plans?The Current Pipe Manufacturing Capacity is 1.5 mn MTPA as explained in page no. 34 which includes the US capacity of 0.35 mnMTPA. The New LSAW capacity of 0.35 mn MTPA and HSAW capacity of 0.20 mn MTPA is planned in India by FY2011. Proposedinvestment in the Middle East facility having HSAW capacity of 0.27 mn tonnes. The total capacity post expansion will be 2.27 mnMTPA.2. What is the Current Utilization level for the company in India and US pipe plants?The total Utilization levels in India and US facilties is around 55%. The capacity utilization depends on diameter and thickness ofthe pipes. The Current year has new capacity of 0.5 mn MTPA which typically takes 3 years to mature.3. What is the production and sales volume in pipes for FY 10?The Production of Welded Pipes was 814 K MT in FY 2010 and the sales volume of pipes was 816 K MT in FY 10.4. How much was the US Production during the year? What was the Sales from the US Plant during the year?During the year the US plant has produced 130 K MT of Spiral Welded pipes. The Sales from the US Plant is US$ 250 mn during theyear.Plate cum Coil mill segment5. What is the production in the Plate Mill? What is total sale of plates during the year (External and Internal)?The company produced 384 K MT of Plates during the year. The total plate sale during the year was 387K MT, out of which 309 K MTis external sale and 78 K MT is internal consumption.6. What is the status of the coil mill?The Coil mill has been commissioned during the year and has started the trial production of coils. The Commercial production istargeted in FY 11.Order Book Position7. What is the current Order Book Position in Value? What is the percentage export and domestic breakup by volume?The combined order book position (for both pipes and Plates) of the company stands at Rs. 64,300 mn (as at 27th April 2010).8. Who are the Major Clients on the Order Book?• TCPL, Canada • Ruby, US • Quastar, US • Pine Gulf, Middle East• Enterprise, US • Saudi Aramco , Middle East • ETC Tiger, US • GAIL, India9. What are the key export markets for the company?The Key Export market for company is North America, South America, South East Asia, Africa and Middle East. The company has awell established sales network across the globe.10. What are the new markets the company is looking for?The new markets for the company are mainly CIS countries, some parts of Middle East and Africa. The company is also lookingforward to increasing its market share in these markets.11. How the company is looking towards the growing domestic market?The domestic market is growing at a good pace with an opportunity of over US$3.2 bn with Major oil & gas pipeline players like,GAIL (Gas Authority of India Ltd) , RGTIL (Reliance Gas Transportation India Ltd) and GSPL (Gujarat State Petronet Ltd) planing to layaround 13,066 km of pipelines over the next 3-4 years. Welspun is looking towards this huge opportunity in the domestic marketand started bidding for the recently announced projects. The company during the year has made a domestic sale of Rs. 20,900 mnout of the total sales of Rs 73,503 mn in FY 10.108