Hariom Pipe Industries has entered into Asset Transfer Agreement with R P Metal Sections Private Limited on December 26, 2022, to purchase their operating Asset which manufactures Galvanized Pipe and Cold Roll coil. This unit is spread across 13.83 acres of land and is located at SIPCOT Industrial growth centre, Perundurai, Tamilnadu. The acquisition is subject to necessary regulatory approval.
Hariom Pipe said the company is in the process of expanding its product range to add more value-added products, and this purchase will help the company in achieving the same. The company is one of the most backward integrated steel pipe mill companies, wherein HPIL manufactures sponge iron, billets, HR strips, and pipes. The management is confident to stand out from the overall industry and continue to deliver healthy margins going forward. With up to 30 percent of the company’s end product which contains recycled steel, the company is trying its bit to contribute to a better environment.
Meanwhile, Hariom Pipe is in the midst of implementing the capex plans for expanding the pipe mill capacities as set out in the prospectus of its maiden IPO. Furthermore, the company has obtained sanction from Canara Bank to the tune of Rs 94.02 crore which will be utilized to set up a modern cold-rolled steel mill and a galvanized pipe manufacturing plant. The company is confident that the complete benefits of all these expansions and capex would be visible starting FY’23-24.
The company has initiated the process to install rooftop solar power generating units on the upcoming expansion plants. The power generated is expected to meet the power requirement of the pipe mill unit and will save about 45 million units of electricity annually.
