Overview
Welspun Specialty Solutions is engaged in the business of manufacturing alloy, stainless steel & its products such as Seamless Tubes & Rolled Products and hence the entire turnover is from alloy and SS steel & its products.
Change in product mix:
Prior to FY21, Co. was into the carbon steel and alloy business, such as manufacturing alloy-based ingots, blooms, Rolled Bar, Bright Bar and other such products. Post FY21, Co. has moved to a stainless steel product mix. In December 2021, Co. started manufacturing SS long products and SS seamless pipes and tubes. Co. restarted its Steel Melting (SMS plant) operations during Q3FY22.
New Customer additions:
During FY22, co. received approvals from customers in Oil & Gas, Fertilizers, Aerospace and Defense amongst others. Co. added new customers in the domestic market for equipment like power plant boilers and oil refinery heat exchangers and also received approval from an international customer for an LPG project.
Manufacturing Capability:
Co. operates an electric arc furnace (for alloy steel) and induction furnace (for stainless steel)-based steel melting shop, a rolling mill, and a seamless pipe manufacturing facility in Bharuch, Gujarat. It has a capacity of 150,000 tonne per annum (TPA) in steel melting shops, 100,000 TPA in rolling mills, along with 18,000 TPA in the pipes division.
Change in holding Company:
Post the demerger of Welspun steel ltd.(WSL) and Welspun corp ltd (WCL), NCLT approved the scheme of transferring the steel business undertaking (of the demerged co.) which inter alia includes the stake of (50.03%) to WCL, resultantly From March 16, 2022, Welspun corp ltd (WCL) is the holding company of this company.
Linkages with the Welspun group:
There are operational and financial linkages between the Co. and the other group entities of the Welspun group. WSL had increased its shareholding in the co. from 49.8% in FY20 to 55.17% in FY23, upon conversion of share warrants.
Post the demerger, The co. has access to the marketing capabilities, customer profile and expertise of WCL.
Entering new markets:
During FY22, co. executed its first lot of Heat Exchanger tubes in SS 317L grade, developed and booked its first order of square tubing for nuclear application, completed other such projects, and entered into several niche market segments.
Conclusion :
WCL is Fully Integrated Manufacturing Facility for Stainless Steel Long Products and Seamless Pipes & Tubes spread over an area of 126 acres in Jhagadia, Gujarat. Government’s continuing spent on infrastructure, energy and other strategic sectors providing thrust to the industry. Domestic industry specially benefitting under “Make in India” Policy.
However, Red Sea crisis has affected the shipping time and costs mostly to EU. After subdued Q2 and Q3, EU is showing signs of recovery in the coming quarters.
Company has started reporting GHG emission data as mandated by the European Commission CBAM for exporting to EU. Company’s 100% revenue is generated from manufacturing of steel and steel products.