Focus on Downstream/Value Add

Growing in sca e. Enhancing value proposition.

DIP expansion roadmap

2.55 LTPA

Current DIP capacity

3.30 LTPA

Expanded DIP capacity post commissioning of phase 1

4.00 LTPA

Expanded DIP capacity post commissioning of phase 2

The potential of water infrastructure in India underpins our strategy to move up the value chain and expand our DI Pipe business. Our long-term growth strategy focuses on creating a leading play in the fast growing water infra sector of India, which calls for rapid capacity expansion in the downstream business of DI pipes. The first phase of our capacity expansion is nearing completion, which will help us offer an extended product range as well as increased volumes.

Strategic enablers

  • Capacity expansion for DIP to 4 LTPA
  • Extend domestic footprint
  • Enhance presence in different global geographies

Material topics

  • Market presence
  • Economic performance
  • Customer centricity
  • Material stewardship

SDGs impacted

Capitals impacted

  • Financial
  • Manufactured
  • Human
  • Intellectual

Ductile Iron Pipe: Sustainable value-added product

By virtue of its unique physical properties, DIP has wide usage across various applications in the water and sanitation sectors. Its flexible push-on joints do not leak at high pressure, even when deflected, which aids easy laying and jointing. DIP is anticorrosive with high tensile strength, enabling it to handle higher pressure and stress compared to traditional cast iron pipes. DIP also offers higher beam strength, resistance and traffic load, making it technically and environmentally far superior to nonmetallic pipes.

Sectoral optimism

The Government of India launched the ‘Jal Jeevan Mission’ to ensure access to potable water supply to 19 crore households across all villages by 2024. This initiative, in partnership with states, bodes well for the DIP industry. Moreover, the budgetary allocation for Jal Jeevan Mission was enhanced to `60,000 crore for FY 2022-23 from `50,000 crore in FY 2021-22, which points to the government’s persistent focus to provide safe drinking water to rural households.

To supplement the above initiative, Government of India also launched AMRUT 2.0 in 2021 and Swachh Bharat 2.0 to be completed over the next 5 years. The launch of these flagship initiatives have also led to commensurate increase in the central budget for the water and sanitation sectors. Similarly, there have been significant stateled investments in the irrigation sector as well. Thus, there will be sustained focus and investments in all the three major sectors – water, sewerage/sanitation and irrigation – in the medium to long term. With such scale of enhanced proposed investments by both the Centre and States over the next few years is expected to provide excellent opportunities for the pipe industry in general, and DI pipe industry, in particular.

DIP capacity expansion

Despite several challenges like two waves of COVID-19 in FY 2021-22, we completed most of the installation of Phase 1 of our new DI pipe plant at Kharagpur. We were in the process of conducting hot trials in FY 2021-22. The agile response of our teams while leveraging digital tools viz. AR/VR has enabled us to address the challenge of non-availability of overseas engineers for installation and commissioning due to COVID-related visa restrictions. We are among the very few in India to have used AR/VR technology to commission a manufacturing unit of this scale. This plant is being built on Industry 4.0, with high levels of automation, mechanisation and digitalisation.

Way forward

DI pipe demand is expected to surge in response to increasing government spend on water infrastructure. With the capacity expansion underway, we are widening our product range upto 1,200 mm diameter pipes. This will expand the scope of our participation in the water infrastructure ecosystem while targeting new geographies and customers and thereby, strengthening our presence.