Shares of Jindal SAW Ltd surged 2.85% to Rs 238.50 on Tuesday following the company’s announcement of three major international investments totaling $118 million. These investments aim to significantly expand its footprint in the Middle East’s iron and steel sector.
In a regulatory filing on Monday, June 9, Jindal SAW said its board approved the establishment of a 100% owned step-down subsidiary in Abu Dhabi, United Arab Emirates. This subsidiary will set up a 300,000 tonnes per annum seamless pipe manufacturing unit to cater to the oil and gas sector across the MENA region. The investment is pegged at $105 million and will be completed in around three years.
In Saudi Arabia, the company will make two additional investments through its subsidiary, Jindal Saw Holdings FZE. The first is a joint venture with Buhur for Investment Company LLC to establish an HSAW pipe plant, with Jindal holding a 51% stake and investing up to $10 million. The second JV is with RAX United Industrial Company to set up a ductile iron pipe manufacturing unit, again with a 51% stake and $3 million investment. These Saudi projects are expected to be completed in two years and 12–18 months, respectively.
These investments will be made in cash, and regulatory approvals are pending. The move is expected to bolster Jindal SAW’s global manufacturing and supply capabilities, especially in oil and gas infrastructure.
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