Investor Presentation - Welspun

Welspun Group | Welspun Corp Ltd 

Investor Presentation 

November 2012


On The Path of Global Leadership… 

WELSPUN CITY, ANJAR


Disclaimer 

Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking 

statements,” including those relating to general business plans and strategy of Welspun Corp. Limited (“WCL"), its future outlook and 

growth prospects, and future developments in its businesses and its competitive and regulatory environment. Actual results may differ 

materially from these forward-looking statements due to a number of factors, inter alia including future changes or developments in 

WCL's business, its competitive environment, its ability to implement its strategies and initiatives and respond to technological 

changes and political, economic, regulatory and social conditions in India. This presentation does not constitute a prospectus, offering 

circular or offering memorandum or an offer invitation, or a solicitation of any offer, to purchase or sell, any securities of WCL and 

should not be considered or construed in any manner whatsoever as a recommendation that any person should subscribe for or 

purchase any of WCL's securities. Neither this presentation nor any other documentation or information (or any part thereof) delivered 

or supplied under or in relation thereto shall be deemed to constitute an offer of or an invitation by or on behalf of WCL to subscribe 

for or purchase any of its securities. 

WCL, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with 

respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The information 

contained in this presentation, unless otherwise specified is only current as of the date of this presentation. WCL assumes no 

responsibility to publicly amend, modify or revise any forward looking statements contained herein, on the basis of any subsequent 

development, information or events, or otherwise. Unless otherwise stated in this presentation, the information contained herein is 

based on management information and estimates. The information contained herein is subject to change without notice and past 

performance is not indicative of future results. WCL may alter, modify or otherwise change in any manner the content of this 

presentation, without obligation to notify any person of such revision or changes. This presentation may not be copied and 

disseminated in any manner. 

THE INFORMATION PRESENTED HERE IS NOT AN OFFER INVITATION OR SOLICITATION OF ANY OFFER TO PURCHASE OR SELL ANY 

SHARES OR ANY OTHER SECURITY OF WCL. 

This presentation is not for publication or distribution, directly or indirectly, in or into the United States, Canada or Japan. 

These materials are not an offer or solicitation of any offer of securities for purchase or sale in or into the United States, Canada or 

Japan.


Welspun Group 

Brief Synopsis 

• One of the fastest emerging global groups, with multi-country 

strategy and manufacturing facilities across geographies 

• Group companies enjoy market leadership positions: 

• 2 nd ranked Large Diameter Pipe Company in World - 

Financial Times, UK 

• 2 nd ranked in Home Textiles – FTT 

Global Recognitions 

Welspun India “Golden Peacock Eco-Innovation Award for the year 2012 

for Eco Dry Towels” 

Welspun Group “ Green IT Award for 2011” 

- by CIO magazine, IDG Group 2011 

Welspun Group 

Ramakrishna Bajaj National Quality Merit Award for 

Welspun Vidya Mandir – IMC 2012 

• Relationship with marquee clients; Fortune 100 companies 

like Exxon Mobil, Chevron, Shell, Bechtel, WalMart, Target etc 

• Equity investment by renowned investors like Apollo, ICICI 

Life, IDBI Bank, Reliance Capital, 3i (UK), Genesis (UK) 

• Excellent relationship with domestic and international lenders 

Key Markets 

• Major exports mainly to North America, South America 

Europe, Middle East, South East Asia, Africa, etc. 

Welspun Corp Best India Manufacturing Company in the US – IACC 2011 

Top Exporter for the Year 2010-2011 - EEPC 

Welspun Corp Economic Times “Emerging Company of the Year Award” 

for Corporate Excellence - 2008 

Welspun Corp 

2nd Largest (Large Diameter) Line Pipe Manufacturer 

in the World - Financial Times UK - 2008 

Welspun India “ Outstanding CSR in Textiles Sector” 

India Shining CSR Award - Wockhardt Group 2011 

International Setup 

• Pipe & Coating facility in Arkansas, US 

• Pipe & Coating Facility in Dammam, Saudi Arabia 

• Christy, UK 

• Offices in Manhattan, NY and Houston, TX - US 

Welspun Corp STAR PERFORMER – GAIL India Ltd - 2011 

Welspun India Sustainability Award - Walmart - 2007 

Welspun India 4 Gold Trophies for Outstanding Export Performance – 

Textile Promotion Council (TEXPROCIL) - 2007


WCL – An Introduction 

• WCL, flagship company of Welspun Group, is one of the largest pipe 

manufacturing companies in the world 

• Incorporated in 1995, the Company offers a complete range of high 

grade line pipes ranging from 1/2 inch to 121 inches used inter alia for 

transmission of oil & gas 

• Partner of Choice for more than 50 Oil & Gas Giants across the globe 

with a geographically diverse client base including Chevron, Exxon Mobil, 

Saudi Aramco, British Gas , Kinder Morgan etc 

• International footprint 

• Accredited with ISO 9001, ISO 14001 and OHSAS 18001 certifications 

• Strong order book of 1.22 million MT ~ US$ 1.6 billion 

Shareholding Pattern, as on Sept 30, 2012 

Consolidated Total Revenues 

(INR Mn) 

105,000 

90,000 

75,000 

60,000 

45,000 

30,000 

15,000 

0 

US $ Mn 

(INR Mn) 

12,200 

9,200 

6,200 

3,200 

200 

US $ Mn 

57,395 

73,503 

80,221 

89,766 

46,104 

2008-09 2009-10 2010-11 2011-12 H1 2012-13 

(1) 

1,250 

(2) 

1,637 

1,799 (3) 

(4) 

1,765 

(5) 

842 

104 

(1) 

252 

259 (3) 142 (4) 

75 (5) 

13,186 

14,461 

11,120 

6,348 

4,084 

2008-09 2009-10 2010-11 2011-12 H1 2012-13 

Operational EBITDA 

Summary Market Statistics 

Public, Banks, 

Financial Institutions 

and others 

39.90% 

Promoter 

37.96% 

As of November 19, 2012 INR Mn US$ Mn (6) 

Share Price (INR/ US$) 105.00 1.91 

FII 

21.89% 

Market Capitalization * 27,664 503 

Enterprise Value (7) 62,166 1,131 

Mutual Funds 

0.25% 

Note 

1. Exchange rate FY09 US$ 1 = Rs.45.91 




Note 

5. Exchange rate H1 FY13 US$ 1 = Rs. 54.737 

6. Exchange rate as on November 19, 2012; US$ 1 = Rs. 54.945 

7. Net Debt at INR 34,502 million as on September 30, 2012 

* Total # shares outstanding: 263.47 million including 35.04 million of CCD’s due for conversion in February 2013


WCL – An Introduction 

State of the art pipe and plate manufacturing capacities worldwide 

PIPES: 

LSAW: 

•Anjar and Dahej, India 

PLATES: 

HSAW: 

•Anjar, Dahej and Mandya, India 

•Dammam, Saudi Arabia 

•Little Rock, Arkansas, USA 

ERW: 

•Anjar, India 

•Little Rock, Arkansas, USA (to be commissioned by Q4 FY13) 

COATING: 

•Anjar and Dahej, India 

•Dammam, Saudi Arabia 

•Little Rock, Arkansas, USA 

• Anjar, India


Global Manufacturing Capacities 

2,500 

2,000 

1,500 

1,000 

Manufacturing Capacities in ‘000 MTPA 

500 

- 

700 

1,350 

175 

200 

LSAW HSAW ERW Total 

Pipes 

Anjar, Dahej and Mandya 

175 

2,250 

1,500 

Plates 

New 

Capacities 

Current 

Capacities 

Little Rock, Arkansas, USA 

Current Capacities 

Anjar, 

India 

Dahej, 

India 

Mandya, 

India 

Dammam, Saudi Arabia 

Dammam, 

Little Rock, 

US 

Plate-cum-Coil Mill 

In ‘000 MTPA 

Total 

Capacity 

LSAW 350 350 700 

HSAW 500 50 150 300 350 1,350 

ERW 200 175* 375* 

Total Pipe 

Capacity 

Plate & Coil 1,500 

Coating 

(mn mtr sq) 

1,050 400 150 300 475* 2,425 

7.75 6.5 4.5 7.0 25.75 

* New Capacity to be commissioned by Q4 FY13 

• Premier integrated set-up for manufacturing 

welded pipes with state-of-the-art-technology 

geared to meet the requirements of the global 

industry 

• The Longitudinal Pipes division (LSAW) 

has a capacity of 350,000 MTPA at 

Dahej 

• The New Longitudinal Pipe Plant 

(LSAW) plant at Anjar has a capacity of 

350,000 MTPA 

• The Spiral Pipes division (HSAW) at 

Dahej and Anjar together have a 

capacity of 550,000 MTPA 

• The Spiral Pipes division (HSAW) at 

Mandya (Karnataka) has a capacity of 

150,000 MTPA 

• The ERW Pipes division at Anjar has a 

capacity of 200,000 MTPA 

• Manufacturing facility on a 740-acre site 

adjacent to the Little Rock Port Authority 

commissioned in February 2009 

• This API certified facility currently employs 

443 people and is capable of producing 

350,000 MTPA of HSAW pipes annually 

for the use of the oil and gas industry 

• It also has Coating and Double Jointing 

capabilities 

• The construction of the new ERW mill with 

175,000 MTPA capacity is underway and 

should be commissioned Q4 FY13 as per 

the schedule. 

• Manufacturing facility of 300,000 

MTPA of HSAW pipes with 

Coating facility 

• Recently commissioned coating 

facility of 1.0 mn sq mtrs 

• This backward integration at 

Anjar, India has annual capacity 

to produce 1,500,000 MTPA of 

Plate and Coil with plates (up to 

12.5 mtrs in length, 140 mm 

thickness and 450 mm width) and 

Coil (up to 2800 mm width and 25 

mm thickness) with strength of 

120,000 PSI


8 

Growth to Infinity 

Revenue 

Rs. 46,104 mn. 

Growth 

H1 2013 

ERW Plant construction in US on schedule 

Mandya plant expansion completed 

Rs. 89,766 mn. 

2012 

- 350,000 tons LSAW capacity in Anjar commissioned 

- Initiated Mandya Plant Capacity Expansion to 150,000 MT 

- Initiative of Setting up new ERW Plant 175,000 tons in US 

Rs. 80,221 mn. 

2011 

Saudi Plant - capacity of 300,000 MTPA operational 

100,000 MTPA HSAW Plant at Mandya operational 

Rs. 73,503 mn. 

2010 

Anjar capacity expansion of 350,000 tons and HSAW capacity 

of 100,000 tons in Mandya initiated 

Rs. 57,395 mn. 2009 

Rs. 39,945 mn. 2008 

350,000 tons US Spiral Mill commissioned 

150,000 tons Spiral Mill commissioned 

Recognized 2 nd largest pipe producer in 

the world by Financial Times, UK 

Rs. 26,834 mn. 

2007 

Anjar Facility , A Key Contributor 

Rs. 18,298 mn. 

2006 

Approvals from O&G majors for new facility 

Rs. 10,385 mn. 

2005 

New Capacity at Anjar, Gujarat for HSAW & Coating 

Rs. 8,277 mn. 

2004 

Merger of coating J.V. with WCL 

Rs. 2,565 mn. 

Rs. 585 mn. 

Rs. 180 mn. 

1998 

2000 

2001 

Pipe Coating in JV with EUPEC, Germany 

Dahej, Gujarat 

LSAW, Dahej, Gujarat 

HSAW, Dahej, Gujarat 

Incorporated 

1995 

Embarked on a Growth Journey 

* Annualized on basis of H1 FY13 Revenue


Welspun Corp Limited: Strong Value & Growth Story 

1 

Strong Industry Fundamentals 

2 

Robust Business Fundamentals 

3 

Global Footprint 

4 

Execution – Strong Management Team & World Scale Capabilities 

5 

Financials


1. Strong Industry Fundamentals 

Relatively Few Major Players 

• Highly capital intensive industry with high barriers to entry 

• Niche markets effectively captured by Welspun 

• Reliability and reputation for excellence are paramount, as 

pipelines are used for critical applications such as oil and 

gas transport 

• Prospects for the industry brightening with oil prices at 

sustainable levels for Oil & Gas firms. 

Global Demand 

• Business potential of around US$ 482 Bn (Source Simdex ) 

• Shale Gas rapidly increasing its share in US – 13.6 trn cu ft 

by 2035 from 5.0 trn cu ft in 2010(source : EIA Energy 

Outlook 2012) 

• Replacement of the old pipelines in US 

• US oil boom is expected to enhance pipeline demand 

• Alaska Pipeline project - another boost to the demand for 

pipes (35 trn cu. Ft. discovered Natural Gas till early 2012) 

Domestic Demand 

• Low pipeline penetration in India provides huge potential 

• Natural Gas as a source of energy is growing at a rapid pace 

and shall grow the demand for pipelines 

• Petroleum & Natural Gas Regulatory Board (PNGRB) 

– Rs. 8.5 bn J&K project awarded to GSP consortium, 

- Approved 1104 km Kochi – Koottand – Bangalore- Mangalore 

in 2012. 

• City Gas Distribution – 200 Cities by 2015 

• Liquefied Natural Gas (LNG) terminals – 18.6 MTPA through 3 

existing terminals 

• Water Infrastructure projects under the 12 th Plan and JNNURM 

Company 

Welspun is well placed, with global clients and state-ofthe-art 

technology, to capitalize on this opportunity 

International Demand Outlook 2012 – 

2017 (Future Pipeline Projects) 

Region 

Projects 

Total 

Length 

(kms) 

Total Length 

(kms) 

Quantity 

(MMT) 

Quantity 

(KMT) (1) 

Business 

Potential 

(US$ 

Bn) (1) 

North America 238 71,000 59 80 

Latin America 66 38,000 32 59 

Europe 153 42,000 35 79 

Africa 65 24,000 20 29 

Middle East 149 42,000 35 65 

Asia 129 69,000 13 126 

Australasia 74 22,000 3 44 

Total 874 308,000 62 482 

Source: www.simdex.com November 2012 data update 

Domestic Market Size 

Business 

Potential 

(US$ Bn) (2) 

GAIL* 6,642 1,328 1.6 

RGTIL 2,628 526 0.6 

IOCL 4,366 874 1.0 

Total 13,636 2,728 3.2 

Source: *GAIL India Ltd Presentation May 2012 

Source: Basic Stats Report – www.petroleum.nic.in 

Share of Expected Demand 2012 - 2017 

Global Demand for Pipes 

Proposed pipeline of GAIL 

Phase I (Under Execution) 

Name of Pipeline 

Length 

(Kms) 

Cost 

(Rs Cr) 

Add. Cap 

(MMSCMD) 

DVPL Ph -II / Vijaypur Dadri 1,109 10,764 80 

Dadri - Bawana - Nangal 594 2,358 31 

Chainsa - Jhajjhar - Hissar 349 1,315 35 

Sub Total 2,052 14,437 146 

Phase II (Approved in 2009) 

Name of Pipeline 

Length 

(Kms) 

Cost 

(Rs Cr) 

Add. Cap 

(MMSCMD) 

Jagdishpur - Haldia 2,050 7,596 32 

Dabhol - Bangalore 1,414 4,994 16 

Kochi - Mangalore - Bangalore 1,126 3,263 16 

Sub Total 4,590 15,853 64 

Grand Total 6,642 30,290 210 

Source GAIL India Investor Presentation , May 2012 

Source: Simdex and Industry Sources 1. Conversion rate of 200 tons/ km 2. As illustrated in the adjoining tables 

Australasia 

6% 

Asia 

24% 

Middle 

East 

13% 

Africa 

6% 

North 

America 

16% 

Europe 

24% 

Source: www.simdex.com Aug 2012 data update 

Latin America 

11%


1. Strong Industry Fundamentals 

Business Strategy and Outlook 

• Outlook for the pipe business remains positive amidst challenges in the global economy. 

• Continued new pipe orders both locally and internationally during such challenging times on the back of its strong customer reach 

and proven execution track record. 

• Key demand markets continue to be North America, Middle East and India; potential for new markets in Latin America, Africa and 

Asia driven by strong growth in energy and oil demand. 

• New shale gas discoveries, potential export of oil and gas from the Americas and demand from the replacement market in the 

coming years shall bode well for the industry. 

• Key differentiating factor going forward - ability to offer a portfolio of high quality products to 

customers. 

• Confident of positive growth through higher utilization levels across manufacturing capacities. 

• Saudi plant booked till the end of next year; US plant booked till November 2013. 

• Strong customer relationship enables repeat orders from key customers. 

• The Plates, DRI and Infra businesses continue to be challenging amidst difficult steel and infra 

market conditions.


2. Robust Business Fundamentals - Healthy Order Book 

Strongly Positioned 

• Strong presence in 2 of the bigger Oil & Gas markets – North America and Middle 

Consistent Production 

‘000 MT 

East; well positioned to take advantage of higher realization margins in Latin 

American markets. 

• WCL marquee clients - Exxon Mobil, Kinder Morgan, El Paso and GAIL 

• Long term contract - TransCanada & Statoil, Framework Agreement - Chevron 

1000 

800 

600 

400 

717 

193 

814 

384 

958 

819 

500 507 

398 

251 

*Current Order book (1,227K MT of pipes and 20K MT of external plates) stands 

at US$ 1.6 billion 

Pipe Orders Booked Pipe Orders Executed Closing Pipe Orders 

Year MT (in '000 tons) MT (in '000 tons) MT (in '000 tons) 

FY 2008-09 807 695 781 

FY 2009-10 824 814 791 

FY 2010-11 844 909 726 

FY 2011-12 1,163 835 1,029 

H1 FY 2012-13 557 359 1,227 

*Current Pipe Order Book – Geographical Distribution by Volume 

Domestic 

16% 

200 

0 

100% 

80% 

60% 

40% 

20% 

0% 

FY 09 FY 10 FY 11 FY 12 H1 FY13 

Total Pipe Production Total Plate Production 

Export-Domestic Revenue Break up % 

33% 34% 

48% 

67% 82% 72% 71% 66% 

52% 

FY07 FY08 FY09 FY10 FY11 FY12 

* 

Export 

Domestic 

Export 

84% 

* FY12 pipe exports by value are ~ 70%, but the above figure has gone down 

due to consolidation of various businesses


2. Robust Business Fundamentals – Leadership Position 

Global Market Expansion 

World’s largest diameter steel pipe producers (1) 

2007 output (million tonnes) 

Salzgitter/Europipe* (Germany) 1.3 

Saudi Arabia 

Iraq 

Welspun (India) 1.0 

Canada 

Spain 

Venezuela 

Russia 

JFE (Japan) 0.7 

Sumitomo (Japan) 0.7 

US (Trader Mkt.) 

US (Projects) 

Mexico 

Peru 

Bolivia 

Algeria 

Egypt 

Columbia 

Oman 

Qatar 

Kuwait Indonesia 

Sudan 

China 

Bangladesh 

Thailand 

Malaysia 

Evraz** (Russia) 0.6 

Nippon Steel (Japan) 0.6 

Riva (Italy) 0.6 

PSL (India) 0.5 

JSW (India) 0.3 

ArcelorMittal (Luxembourg) 0.2 

Year 2000–2001 Year 2001–2002 Year 2002–2003 Year 2003–2004 Year 2004–2005 

Year 2005–2006 Year 2006–2007 Year 2007–2008 Year 2008–2009 

Year 2010-2011 

Year 2011-2012 

Year 2009– 

2010 

Stupp (US) 0.1 

Tata/Corus (India/UK/Netherlands) 0.1 

Others*** 7.3 

What Sets WCL Apart From Competition 

• Decade Long Experience 

• One stop solution 

• High Capacity Equipment to Meet Future Demand 

• Proven execution and strong management experience 

Framework Agreements 

• Features 

- Selected few companies considered for supplies that meet stringent process of qualification 

- Typically customers with large requirement over a period of time 

- Flexibility in pricing terms and continuous business 

• Current Framework Agreements - Chevron 

WCL was rated 2 nd largest Pipe Company in 2007 and has since reached capacity of 2.25 MTPA 

Note 

1. As reported by Financial Times on April 13, 2008


3. Global Footprint - Welspun’s Worldwide Reach 

AMERICAS 

EUROPE & CIS 

Canada 

USA 

Mexico 

Bahamas 

Trinidad & Tobago 

Venezuela 

Colombia 

Peru 

Bolivia 

Spain 

Czech Rep. 

Algeria 

Nigeria 

Egypt 

Sudan 

Russia 

Iraq 

Qatar 

UAE 

Saudi Oman 

India 

DOMESTIC 

China 

Bangladesh 

Thailand 

Malaysia 

SOUTH 

EAST ASIA 

AUSTRALIA 

Indonesia 

Plant Locations 

Anjar, India 

Dahej, India 

Mandya, India 

Little Rock, USA 

Dammam, Saudi 

Marketing Offices 

Mumbai, India 

Delhi , India 

Houston, USA 

Dammam, Saudi Arabia 

Dubai, UAE 

MENA 

Plants 

Mktg Office 

Countries served 

Source: Welspun Corp Ltd.


3. Global Footprint – Relationship with Oil & Gas Majors 

AGIP, Jordan 

Al WASIT, UAE 

BECHTEL, US 

BRITISH GAS 

BRITISH PETROLEUM 

CHINA NATIONAL PETROLEUM CORPORATION 

CPMEC, China 

CHEVRON, US (Framework Agreement) 

DOW, US 

ELPASO, US 

EGYPTIAN GENERAL PETROLEUM CORPORATION 

ENTERPRISE, US 

EXXON-MOBIL (GOLDEN PASS PIPELINE), US 

GROUP FIVE , Saudi Arabia 

GAIL, India 

GASCO, UAE 

GASCO, Egypt 

GAZPROM, Russia (STROYTRANSGAZ) 

KINDER MORGAN, US 

N.A.O.C. - Nigeria 

NPCC, UAE 

NTPC, India 

ONGC, India 

PETRO CHINA 

PETRONAS, Malaysia 

PDO, Oman 

PGN, Indonesia 

QATAR PETROLEUM 

RELIANCE INDUSTRIES LIMITED, India 

SAIPEM, Italy 

SAUDI ARAMCO 

SHELL, US 

STOLT OFFSHORE – Acergy, UK 

SONATRACH, Algeria 

TOTAL, France 

TECHNIP, France 

TRANSCANADA (Long Term Contract) 

UNOCAL, US 

PERU LNG, US (HUNT OIL) 

VIETSOPETRO, Russia/Vietnam 

SWCC, India 

Accreditation Process 

A significant entry barrier 

Setting up plant 

1-2 years 

Seeking API 

approval 

1 year 

3 - 5 years 

Approval from 

major domestic 

/ international 

oil and gas 

companies 

2 – 3 years


4. Execution - Strong Management Team 

Mr. B.K. Goenka is the Chairman, and the chief architect 

of the Welspun Group. Today, with his entrepreneurial 

ability and professionalism, he has built up one of the most 

admired business conglomerates 

Mr. R.R. Mandawewala is the Group Managing Director, 

a key contributor in Welspun’s journey. A Chartered 

Accountant by profession and with over 25 years of 

experience, he has expertise varying from Textiles to SAW 

pipes. 

Mr. Braja K Mishra is the Managing Director of Welspun 

Corp and is a prominent figure in the industry with long and 

varied experience. Has over 25 years of experience and 

posseses immense critical know-how about the pipe and 

plate industry 

Mr. Mintoo Bhandari, serves as Director on Board 

(Nominee of a shareholder) in WCL. Mr. Bhandari also 

serves on the board of directors of SOURCECORP, Dish TV 

India Limited and Wire & Wireless (India) Ltd. Mr. 

Bhandari graduated with an BS in Mechanical Engineering 

from MIT and with an MBA from the Harvard Business 

School. 

Mr. David J. Delie serves as President Welspun Tubular 

LLC. A graduate in Science (Electrical Engineering) and a 

Masters Degree in Engineering Management from the 

University of Pittsburgh, he has an extensive 33-year 

background in the steel and pipe industry. Mr Delie has 

served on the Board of Directors of Berg Steel Pipe Corp., 

EB Pipe Coating, Inc., the American Iron & Steel Institute 

(AISI). 

Mr. B.R. Jaju serves as Director & CFO. A Chartered 

accountant by profession, member of Company Secretary (FCS), 

as well as a Law Degree (LL.B). He has a rich experience over 

30 years in finance and global M&A activities. Mr. Jaju has been 

awarded 3 times as Best Performing CFO in the year 2003, 2005 

and 2006, by the most credible nationally renowned jury. 

Mr. Akhil Jindal serves as Director, Group Strategy & 

Finance. He graduated with an Engineering Degree , MBA 

from Indian Institute of Management, Bangalore. Mr. Jindal 

is responsible for strategic inorganic/organic initiatives 

within the Group and has spearheaded large fund raisings, 

cross border acquisitions, private equity raisings and 

financial closure of projects exceeding over US$ 1 bn. 

Mr. Prashant Mukherjee serves as Director of Welded Pipes. 

A Graduate in Science (Engineering, Mech) with over 24 years 

experience mostly in the Oil & Gas Pipe Industry, Mr. Mukherjee 

has been instrumental in implementing expansion projects in the 

Company 

Mr. Vipul Mathur is the Director Sales & Marketing (Pipes). 

A Science Graduate and Masters in Business Administration 

(MBA) in Marketing, he has a rich experience of over 16 years in 

the Oil & Gas Pipe Industry 

Mr. Akbar Umatiya is Vice President & Unit Head of 

Welspun Middle East LLC (Saudi Plant) A technocrat 

Professional having more than 26 years of versatile experience in 

various fields like Operations, Project Executions and Marketing 

in India and Overseas. He has proven capability to perform in 

International environment studded with a mix of diverse cultures 

and to develop Technical and professional abilities for team 

building to enhance superior quality work.


4. Execution - Proven World Scale Capabilities 

LSAW Pipes 

ERW Pipes 

HSAW Pipes 

Coating of Pipes



Plates 

Plates 

US Plant 

Skilled Workforce



US Plant, Little Rock Arkansas 

Mr . B.K. Goenka (CMD, Welspun) with Arkansas Governor Mike Beebe 

• Commissioned in Feb’09 , state of the art HSAW, API approved mill with a Capacity of 350,000 MTPA; 

Utilization ~ 60% during FY12 

• Supplier to TCPL, El Paso, Enterprise, Exxon Mobil, etc 

• New ERW Mill of 175,000 MTPA capacity and Coating Line 

• $80 million investment; to be commissioned by Q4 FY13 and likely to ramp up production in FY14 

• By 2013, WCL to provide a complete range of HSAW & ERW pipes along with Coating and Double Jointing 

facilities from the Little Rock plant 

• Line Pipes from 6” to 60” 

• This will create one of the best and fully integrated facilities in this part of the world.



Saudi Plant, Dammam 

• State of the art Saudi Plant - 300,000 MTPA capacity provides a strong presence in the key Middle 

East pipes market 

• Opportunity to locate closer to customers and cater to their specific demands 

• Savings on transportation cost, and in the process improve operational efficiency 

• Key supplier in the Middle East; key clients - Saudi Aramco along with other recognized Oil & Gas 

majors 

• Recent approval from Saudi Aramco will enable WCL to cater to specific product requirements 

• Capabilities to deliver pipes from 18” to 100” and of the highest quality standards to meet the 

stringent requirements in the Middle East market 

• Coating plant with capacity of 1.0 million sq mtrs


Journey to become the most respected Pipe Company in the World 

How Welspun will sustain 

How Welspun reached here 

• Technology 

• Product profile 

• Approvals 

• Accreditations 

• Serving challenging orders 

• People 

• Zero Harm - Safety 

• Niche markets -deep offshore/ sour 

pipelines 

• Stringent client specifications 

• Local presence in key markets 

• Highly trained workforce 

• Zero Tolerance – Quality Standard 

Humble beginnings 

Today 

The future


5. Financials - Revenues & Margins 

Sales Volume (000’ MT) 

909 

1000 

816 

835 

695 

800 

600 

485 

531 

387 

359 

400 

250 

154 

200 

0 

FY 09 FY 10 FY 11 FY 12 H1 FY13 

Total Pipe Sales Total Plate Sales 

Profit After Tax (Rs. Mn) 

Consolidated Revenues (Rs. Mn) 

100,000 

80,000 

60,000 

40,000 

20,000 

- 

57,395 

73,503 

80,221 

89,766 

46,104 

FY 09 FY 10 FY 11 FY 12 H1 FY13 

(1) 

(2) 

(3) 

US$ Mn 1,250 1799 

1,637 

Operational EBITDA (Rs. Mn) 

(6) 

(4) 

1679 

(5) 

470 

7,000 

6,000 

5,000 

4,000 

3,000 

2,000 

1,000 

- 

2,135 

6,104 6,330 

2,385 

118 

FY 09 FY 10 FY 11 FY 12 H1 FY13 

* 

** 

*** 

**** 

US$ Mn 

47 

(1) 

(2) 

136 

(3) 

142 

(4) 

45 

(5) 

2 

US$ Mn 

(1) (2) (3) (4) 

138 294 324 208 

75 

(5) 

Notes 

1. Exchange rate FY09 US$1 = Rs.45.91 




5. exchange rate H1 FY13 US$1 = Rs.54.737 

Notes 

6. * Includes recovery of past forex provisioning ( in FY09) , which is reflected in better realization and cost of material 

7. ** Includes export rebate of Rs. 734 million on receipt of favorable judgment from Honorable Supreme Court. and provision of 

Rs. 2,007 million on account of settlement with one of the customers thereby ending long pending litigation 

8. *** FY12 operational performance impacted by foreign exchange provisions of Rs 1,244 million and provisions made towards 

amicable settlement with a customer of Rs 649 million. Total Foreign Exchange provision was Rs. 1,517 million 

9. **** Includes Rs. 912 million of foreign exchange provisions


5. Financials – Balance Sheet Extract (Consolidated) 

Equity & Liabilities – H1 FY13 & FY12 

(Rs. Million) 

Particulars 30-Sep-12 31-Mar-12 

Shareholders’ funds 

Share capital 1,139 1,139 

Reserves and surplus 40,743 40,117 

Sub-Total- Shareholders's Funds 41,882 41,256 

Compulsorily Convertible Debentures 7,884 7,884 

Total Net Worth 49,766 49,139 

Minority Interest 3,079 3,433 

Non-current liabilities 

Long-term borrowings 43,378 39,714 

Deferred Tax Liabilties (Net) 5,343 5,036 

Other long-term liabilities 3,437 3,405 

Long-term provisions 287 244 

Sub-Total Non Current Liabilities 52,445 48,400 

Current liabilities 

Short-term borrowings 7,482 7,773 

Trade payables 31,373 32,923 

Other current liabilities 18,581 14,885 

Short-term provisions 1,672 1,741 

Sub-Total Current Liabilities 59,108 57,322 

TOTAL-Equity and liabilities 164,397 158,294


5. Financials – Balance Sheet Extract (Consolidated) 

Assets – H1 FY13 & FY12 

(Rs. Million) 

Rs. Million 30-Sep-12 31-Mar-12 

Non-current assets 

Fixed assets 66,081 63,625 

Goodwill on consolidation 9,888 9,888 

Non-current investments 464 355 

Deferred Tax Assets (Net) 80 66 

Long-term loans and advances 5,312 5,061 

Other non-current assets 288 357 

Sub-Total- Non Current Assets 82,113 79,351 

Foreign Currency Monetory Item Translation 

Difference Account 459 323 

Current assets 

Current investments 18,245 19,431 

Inventories 32,613 25,827 

Trade receivables 18,377 15,260 

Cash and Cash equivalents 4,420 10,255 

Short-term loans and advances 6,231 5,809 

Other current assets 1,938 2,038 

Sub-Total- Current Assets 81,825 78,620 

TOTAL-Assets 164,397 158,294


5. Financials – Net Worth & Debt Profile 

Current Net Worth 

• Net Worth of the Company at the end of Q2 FY13 - Rs. 49,766 million including 

Share Capital, Reserves & Surplus, and CCDs 

• Gross Debt after Q2 FY13 - Rs. 57,167 million including Long Term Borrowing, Short Term 

Borrowing and current portion of Long Term Borrowing 

• Cash & Liquid Investment - Rs. 22,665 million including Cash & Cash Balances and 

Current Investments 

• Net Debt - Rs. 34,502 million 

Net Debt / Net Worth - 69%


Q2 and H1 - FY13 Highlights 

Key Snapshot 

• 1.22 million MT outstanding pipe 

order book 

• Sales up by 21% in H1 FY13 Y-o-Y 

• Bagged new orders of Rs.18 billion 

(212K MT of pipes, and plates) from 

domestic and international Oil & Gas 

majors from key markets such as 

India, Africa and the Americas during 

the second quarter 

Consolidated Financial Summary in Q2 & H1 FY13 

Breakdown of Production and Sales in Q2 & H1 FY13 

(Rs. Mn) 

Particulars *Q2 FY13 Q2 FY12 *H1 FY13 # H1 FY12 

Sales 20,606 20,538 46,104 38,097 

EBITDA 2,171 2,674 4,538 5,989 

EBITDA margin 10.5% 13.0% 9.8% 15.7% 

Cash PAT 1,344 1,622 2,488 3,780 

The above results are after taking into consideration, loss of approximately 70 days of production at the US 

plant due to fire. The plant has recommenced production in the later part of September 2012 and is now in full 

swing. 

# Includes Rs.912 million of foreign exchange provisions for H1 FY13 

Volume (in KMT) Q2 FY13 Q2 FY12 H1 FY13 H1 FY12 

Production 

Pipes 181 199 398 379 

Plates & Coils 101 102 251 210 

Sales 

Total Pipes 

Consolidated 

181 210 359 413 

Plates & Coils* 102 104 250 219 

Status of Projects 

Capacity expansion of Mandya Plant completed and manufacturing underway in the newly completed facility. 

Construction of ERW Plant in Little Rock, Arkansas, US on schedule and expected to be commissioned by Q4 FY13.


Summary 

1 Strong Industry 

Strong Industry 

Fundamentals 

Fundamentals 

• • Capital Capital intensive, high 

barriers to to entry 

• • North America expected 

to 

to lead demand 

5 Revenues & Margins 

• Maintaining profitable 

growth in challenging 

environment 

2 

Robust Business 

Fundamentals 

• Strong volume growth 

• Order Book in excess of US$ 

• 1.6 billion 

• Capacities of global size 

• Comprehensive product mix 

4 3 

Global Footprint 

Strong Management Team 

with Proven Execution 

Capabilities 

• Recognized by the FT as the 

second largest steel pipe 

producer in the world in 2007 

• First Indian company to supply 

pipes for offshore projects in US 

• Presence across more than 

25 countries 

• Pre-approved with more 

than 50 O&G Majors


Welspun on the Path of Global Leadership 

Global Leadership Serve Globally, Act Locally 

Scale Leadership 

Scale of operations through large economic plants across the globe 

Cost Leadership 

Produce world class products at the least cost and maintain competitive edge 

Technology 

Leadership 

Adopt and innovate cutting-edge technology to satisfy stringent 

requirements of customers 

Quality Leadership 

Consistent focus on quality at all levels; be the best in delighting customers 

Process Leadership 

Most efficient and effective processes to achieve optimal utilizations 

People Leadership 

Best in class people : Produce extraordinary results


Thank You 

For further details, please contact: 

Akhil Jindal 

Director – Group Strategy and Finance 

Email: akhil_jindal@welspun.com 

Navin Agarwal 

VP - Group Strategy and Finance 

Email: navin_agarwal@welspun.com 

Company Website: http://www.welspuncorp.com

Investor Presentation - Welspun

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