They are Backward integrated
If u see their product manufacturing chain
They Source Iron Ore and makes sponge iron & from that billets & then Pipes and so on
This is the reason behind their stable & High margin compared to Peers + They focus only on VAP Products (90%+ sales of VAP), while competitors & china focus on High Volume/Commodity products
Backward Integration can save Hariom in bad times like if for any reason Sponge Iron/Steel/Billets rises they would not be impacted much as they manufacture such products (Even they can sell that products, if they gets opportunity as management is growth oriented)
In short:
-Backward Integration (Save margin & can fight competition in bad times)
-Focus on VAP Products only
Above 2 lead to stable margin
Hope you get it 
4 Likes
Does the business need to do additonal capex to fuel the 2500 revenue goal?
If not it could work on debt reduction and lead to growing positive cash flows
No Capex required for Revenue target of 2500 Cr in FY26
They are currently running at 30-35% capacity only
Total Capacity is 7,00,000 MTPA
Current Capacity can easily generate potential revenue of 3000-4000 Cr
Huge operating leverage with Debt reduction leading to PAT margin expansion (if CF Improves) can easily happen
4 Likes
Problem is not capex. Problem is working capital. How do you solve for that?
Here, they have guided… How they will
Also, CF turns positive after long time in last Q + Inventory, Receivables turnover ratio also improved
Hope for the best from Q1
3 Likes
Hariom Pipe Management Interview
Some Important things:
-Past growth will sustain
-Will focus on improving operating efficiency & VAP
-ROCE will inch upward to 21%
4 Likes
is venus pipes a competitor in any way
Venus is not a competitor
Both are totally different:
Hariom is in ERW Pipe segment & Venus is in Stainless Steel Pipe segment
