Scoda Tubes Ltd. IPO

We are a stainless-steel tubes and pipes manufacturer based in India having over 14 years of experience. Our products are broadly categorised into: (i) seamless tubes/pipes; and (ii) welded tubes and pipes, under five (5) product lines, namely, (i) stainless steel seamless pipes; (ii) stainless ... steel seamless tubes; (iii) stainless steel seamless “U” tubes; (iv) stainless steel instrumentation tubes; and (v) stainless steel welded tubes and “U” tubes (“Products” or “Stainless Steel Products”). Seamless pipes are pipes without a seam (end joints) and are manufactured using Round Bars whereas welded pipes are manufactured by welding the flat steel strips into a round / circular shape. We market our Products under the brand, “Scoda Tubes Limited”. Our Products are used by a diverse range of customers like engineering companies, EPC and industrial companies engaged in Oil and Gas, Chemicals, Fertilisers, Power, Pharmaceuticals, Automotive, Railways and Transportation sectors. In addition, we operate a hot piercing mill for the production of mother hollow, which is the principal raw material for our stainless-steel seamless products. Currently, our hot piercing mill has a production capacity of 20,000 MT per annum. Our ability to produce our principal raw material enables us to achieve backward integration of our seamless products’ processes, allowing us to control our production costs and reduce reliance on suppliers. Currently, any quantities of mother hollow in excess of our captive consumption are sold in the open market. In addition to our manufacturing business of seamless tubes/pipes and welded tubes and pipes, we also generate revenue from sale of services which consists of revenue earned from job work services like annealing, straightening, pickling and marking provided to other customers. Read more

Global demand for stainless steel tubes and pipes increased from approximately 2.7 million tonnes per annum in 2019 to approximately 3.1 million tonnes per annum in 2023, clocking a CAGR of about 3%. The share of stainless-steel welded tubes and pipes in the overall global demand falls in 80-85% ... range with the stainless-steel seamless tubes and pipes accounting for the rest 15-20% share in the demand. Domestic demand for stainless steel tubes and pipes increased from 0.23 million tonnes in fiscal 2020 to 0.32 million tonnes in fiscal 2024, clocking a CAGR of approximately 9% during the period. The share of stainlesssteel welded tubes and pipes in the overall domestic demand has largely remained at around 65% with the stainlesssteel seamless tubes and pipes accounting for the rest 35% share throughout the period. Between fiscals 2024 and 2029, the domestic demand for stainless steel tubes and pipes is expected to increase at a CAGR of 6-8% to 0.45-0.47 million tonnes in fiscal 2029. This healthy growth in the demand will primarily be led by strong growths in major end use industries of stainless-steel tubes and pipes such as building and construction, automobile, oil and gas, chemical manufacturing, food and beverage, etc. Read more