India’s pipe industry is seeing rising demand from oil, gas, and water infrastructure. With global SAW pipe demand growing and Middle East projects expanding, two companies are positioning for the next phase of growth.
India’s pipe industry is entering a phase of strong demand driven by oil and gas. Submerged Arc Welded (SAW) pipes are widely used in large-diameter pipelines, with oil and gas transmission accounting for around 55% of SAW pipe demand.
Water transmission is another important market, contributing about 25% of demand as countries invest in desalination, irrigation, and water infrastructure. The opportunity is also visible in the global market. The global SAW line pipe market is estimated to grow from $12.8 billion in 2025 to $21.4 billion (around ₹2 lakh crore) by 2034.
The Middle East is emerging as an important demand center. Its oil and gas pipeline market is estimated at around $6.5 billion in 2026, with Saudi Arabia accounting for 39% of regional demand. Alongside energy pipelines, large water transmission and desalination projects are creating another source of orders.
For Indian manufacturers, this creates an opportunity across different pipe technologies. Against this backdrop, this article examines two pipe companies with an expanding presence in the oil and gas sector and looks at how their product capabilities, order books, and sector exposure could shape their growth prospects.
Jindal Saw is one of India’s leading iron and steel pipe manufacturers and a total pipe solutions provider. The company’s operations span five major product lines serving the water, energy, infrastructure, automotive, and industrial sectors. It operates in more than 80 countries.
Core Capabilities: Dominating Global Ductile Iron and Welded Pipe Markets
Its Submerged Arc Welded Pipes, including Longitudinal SAW (LSAW) and Helical Spiral SAW (HSAW) pipes, are used for large-diameter oil, gas, and water transportation pipelines. The company is the world’s third-largest producer of ductile iron pipes, which are used to supply drinking water and sewage networks.
The company’s Ductile Iron installed capacity is 11,38,000 metric tonnes per annum (MTPA), which includes India (8,38,000 MTPA) and Abu Dhabi (3,00,000 MTPA). Management plans to increase utilization of domestic plants and focus on operational efficiency. It also plans to expand into high-margin value-added segments such as defense and aerospace.
GCC Greenfield Push: Why Abu Dhabi and Saudi Capacities Target FY29
Jindal SAW is aggressively constructing localized manufacturing facilities in the GCC/MENA region. The company is building a 3,00,000 MTPA greenfield seamless pipe manufacturing plant for the oil and gas industry in Abu Dhabi. It is also setting up a 3,00,000 MTPA LSAW and HSAW pipe mill in Saudi Arabia.
The commercial operations are expected to start in FY29. The company expects production to reach 50-60% capacity utilization in the first year of operation, and peak utilization within 2 to 3 years. Jindal Saw is seeing high demand for building overland energy and water pipelines to bypass high-risk sea routes.
Moreover, regional oil and gas producers are investing heavily in expansion, rehabilitation, and replacement projects to secure alternative energy transit routes. In addition, demand is also high for high-grade seamless pipes and large-diameter submerged arc welded pipes for crude and natural gas supply lines.
European and Asian Diversification: De-risking Beyond Traditional Export Corridors
To diversify, Jindal Saw is also leveraging its existing hub in Italy to tap the European market for ductile iron pipe. It is also exploring new export regions for line pipes in South-East Asia and Commonwealth of Independent States countries.
Margin Squeeze and Jal Jeevan Delays: Decoding the Q1FY27 Profit Slump
Jindal Saw’s financial performance for Q1FY27 was weak. Total income rose 9.1% year-over-year to ₹4,476 crore. EBITDA (earnings before interest, taxes, depreciation, and amortization) fell 38.8% to ₹421 crore, as margins fell to 9.4% from 16.8% in Q1FY26. Net profit declined 78.1% to ₹91 crore. The Middle East Conflict and a domestic water-sector slowdown impacted growth.
Looking ahead, performance is expected to remain subdued in H1FY27 due to ongoing geopolitical conflicts in the MENA region, delays in export shipments, and a delay in fund releases under India’s Jal Jeevan Mission. Consequently, management expects total pipe sales volumes for FY27 to remain flat compared to FY26 levels.
#2 Man Industries: Expanding Pipes Across Global Energy Infrastructure
Man Industries is a global manufacturer and exporter of large-diameter carbon steel line pipes and coating systems. Its product portfolio includes line pipes (LSAW, HSAW and ERW) and coating systems.
Its pipeline solutions serve key projects in oil and gas transmission, petrochemicals, water supply, fertilizers, dredging, and hydrocarbons. The company operates two main manufacturing complexes in India with a combined domestic manufacturing capacity exceeding 1.2 MTPA.
Saudi Vision 2030 Play: How the ₹1,000-Crore Acquisition Unlocks Aramco’s Order Pipeline
Man acquired National Pipe Company in Saudi Arabia for ₹1,000 crore. The acquisition added 430,000 MTPA capacity, along with an upcoming Dammam coating and double-jointing facility. The company will consolidate financials from Q2FY27, with an expected quarterly revenue run rate of ₹300-500 crore and annual revenue of ₹2,400-3,000 crore from FY28 onwards.
Man Industries’ clients include energy and infrastructure giants such as Aramco, QatarEnergy, and Reliance Industries. As an Aramco-approved in-Kingdom manufacturer, Man directly benefits from Saudi Arabia’s multi-decade Vision 2030 energy and water infrastructure projects, including Master Gas System Phase 3, Jafurah gas field, and desalination builds.
Demand is also supported by long-term national security investments, such as the oil and gas pipeline to bypass Hormuz. India’s domestic water infrastructure program, such as Jal Jeevan Mission 2.0, is also a key demand driver. However, the execution has been pretty weak on this front.
To capture higher-margin market segments, the company is executing two major capital projects targeting completion by March 2027. A greenfield 22,000 MTPA stainless steel seamless mother and pilgered pipes facility in Jammu will serve defense, nuclear, and refinery applications.
Why Turnkey Coating and Jammu Seamless Capacity Target 20% Margins
In addition, the company is constructing a dedicated coating and double-jointing facility to complement the acquired National Pipe Company pipe manufacturing mills in Dhahran (Saudi Arabia). The facility is scheduled to be commissioned by March 2027. This facility aligns with Saudi Aramco’s mandate for 24-meter double-jointed and coated pipes for its pipeline projects.
In-house coating and double-jointing allow Man Industries to bid on complete turnkey packages (pipe manufacturing + double-jointing + coating) rather than selling bare pipes alone. Notably, over 80% of line pipes in Saudi Arabia require protective coatings.
This could expand the company’s margin to a targeted 14-16%. It is also constructing a stainless steel greenfield plant in Jammu (India). This facility is also scheduled for commercialization in March 2027, with revenue contribution from FY28. This marks Man’s diversification into high-value premium stainless steel seamless tubes.
This product targets high-pressure applications in chemicals, defense, marine, nuclear power, and oil refining. Upon going live, it is projected to add ₹200-300 crore in annual revenue in FY28. This is key to achieving its guidance of a long-term EBITDA margin of 14-16%. Financially, its performance was strong.
Triple-Digit Profit Surge: Assessing the FY27 ₹5,000-Crore Revenue Trajectory
Revenue from operations grew 37.7% to ₹1,065 crore in Q1FY27. EBITDA surged 92.6% to ₹155 crore, while margin expanded by 420 bps to 14.6%. Net profit grew 122.5% to ₹61 crore. The company has guided for consolidated revenue to grow by 25-30% to ₹5,000 crore for FY27. India’s operations are expected to contribute ₹3,800 crore, and Saudi Arabia ₹1,200 crore.
The company has a consolidated order book of ₹3,600 crore, which it can complete within 6-12 months. It has an active global bid pipeline of ₹24,000 crore, with 70% from the MENA region and 35-40% from the water sector. It is also monetizing non-core assets, which is projected to yield ₹700-800 crore in revenue over 5-6 years.
Execution Watch: Evaluating Bid Conversion and Balance Sheet Risk
Man Industries stands out for its strong Return on Capital Employed (ROCE) and Return on Equity (ROE), followed by Jindal Saw. Valuation-wise, both the companies are trading at a premium to both the industry median price-to-earnings (P/E) multiple and their historical 3-year median valuation.
The line pipe opportunity is closely tied to the expansion of oil and gas pipelines, water networks and infrastructure projects across India and the Middle East. Both companies are increasing their exposure to these markets. However, the growth opportunity comes with execution and margin risks.
Jindal Saw is facing near-term pressure from weaker domestic water sector activity and geopolitical disruptions, while Man Industries is taking on additional execution responsibilities through its Saudi expansion.
Key variables to track include capacity utilization, order execution, margins, and the conversion of international bid pipelines into actual orders. That said, these companies could be worth keeping on your watchlist.
Disclaimer:
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. We used an alternative, widely accepted source only when the data were unavailable.
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About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
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