Kamineni-Malaysian firm JV setting up Rs 600cr seamless pipe mill

Hyderabad: United Seamless Tubular Private Limited, a joint venture company between the Hyderabad-based Kamineni Hospitals Group and UMW Holdings Berhad's oil and gas division, Malaysia, is setting up a seamless pipe mill project at an investment of Rs 600 crore near Hyderabad.

The Malaysian company holds 51 per cent equity while the rest is held by Kamineni. The plant, which would have a 3-lakh tonne capacity a year, is expected to start commercial production from April 2010. The JV company is setting up the project with a debt equity ratio of 3:1 per cent.

Seamless pipes will mainly cater to the oil and gas exploration and production sector. The JV plans to export these pipes to all the countries including those in West Asia, according VSR Naidu, head (corporate communications), Kamineni group. The company has already received orders for 3,010 tonne pipes, he said.

Besides, the company plans to invest Rs 400 crore in other auxiliary operations at the plant, which is expected to provide direct employment to 500 skilled professionals and indirect jobs to 5,000 people, he said.

Kamineni, one of the leading healthcare players in Andhra Pradesh, also owns a tube manufacturing unit at Narketpally near Hyderabad, where the new project is coming up on 67 acres.

The company would focus on higher grade pipes, including chrome steel pipes where value additions are more, according to a press release. The main equipment for the pipe mill will be supplied by Danieli, Italy, it said.

UMW Holdings Berhad had ventured into India by picking up a majority stake in Kolkata-based Multicoat Coating Technologies Private Limited last year.