DEE Development Engineers Ltd Partly Commissions ₹250 Crore State-of-the-Art Manufacturing Facility in Gujarat

With an aim of targeting a three-fold rise in total revenue in the next three to five years, DEE Development Engineers Limited, a major player in process piping solutions, today announced the commission of 2nd phase of its new, cutting-edge manufacturing plant in Anjar, Gujarat, through which it has enhanced the capacity by 9,000 MT per annum and making the operational capacity to 12,000 MT per annum. This facility shall primarily cater to the jobs of oil and gas piping sector.

"The total investment in this state-of-the-art facility amounts to ₹250 crores. Of this, ₹160 crores 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, ₹90 crores 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" said Mr. Krishan Lalit Bansal, Chairman, DEE Development Engineers Limited.

Of the total ₹260 crore investment, an initial ₹150 crore has already been invested, partly financed by bank borrowing of ₹40 crores. The balance investment, amounting to 110 crores, will be entirely funded through debt.

"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." Mr. Bansal said 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.

This significant investment is integral to DEE Development's strategy to capitalize on growing opportunities in the oil and gas sector. The new facility will enable the company to effectively meet the rising demand for high-quality process piping solutions and thick seamless pipes, positioning us to benefit from orders within this industry.

Job Creation and Local Economic Impact

This new facility, spanning 47 acres, will have a significant impact on the local community by generating approximately 100 direct employment opportunities and around 500 additional jobs for labourers. Beyond direct employment, the plant will contribute to the local economy by creating demand for various support services and businesses. DEE Development is committed to fostering economic growth in Anjar and the broader Gujarat region.

Technology, Innovation, and Sustainability

DEE Development has integrated cutting-edge automation and semi-automation technologies into the plant, optimizing production efficiency and operational precision. Additionally, the facility adopts lean manufacturing principles, reducing material handling and further enhancing overall production effectiveness.

Strategic Importance and Future Plans

This plant is an integral part of DEE Development's long-term growth strategy, designed to meet the increasing demand for advanced process piping solutions in the oil and gas industry. 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.

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

Key highlights of the new facility include:

1. Total investment of ₹250 crores, with ₹160 crores allocated for a process piping solutions plant and ₹90 crores for a seamless pipe manufacturing facility.

2. Annual production capacity of 27,000 metric tons for process piping solutions and 7,000 metric tons for high wall thickness seamless pipe Manufacturing Plant.

3. Creation of approximately 600 job opportunities, comprising 100 direct staff positions and 500 labourer roles

4. Implementation of advanced automation and lean manufacturing concepts for enhanced proficiency both in terms of operations and profits.

5. Strategic focus on capitalizing on the increasing demand within the oil and gas industry

Shares of Dee Development Engineers Limited was last trading in BSE at Rs. 309.35 as compared to the previous close of Rs. 300.35. The total number of shares traded during the day was 26553 in over 1270 trades.

The stock hit an intraday high of Rs. 322.00 and intraday low of 298.90. The net turnover during the day was Rs. 8262789.00.

Source : Equity Bulls

Keywords

DeeDevelopmentEngineers IndustrialProducts INE841L01016 2ndPhase Commissioned NewManufacturingPlant