DDEL offers specialised solutions
Dee Development Engineers Ltd (DDEL), a major player in process piping solutions, has commissioned the 9,000-tonne Phase II of its state-of-the-art manufacturing plant in Anjar, Gujarat. This expansion will take the plant’s overall capacity to 12,000 tonnes per annum. This facility will primarily cater to the oil & gas sector. The company, which is planning a three-fold rise in its total revenue in the next three to five years from about Rs789 crore in 2023-24, is expected to invest in total Rs250 crore in this Anjar project.
Out of this, Rs160 crore has been allocated for the process piping solutions plant, which has a total annual capacity of 27,000 tonnes per annum. Till now, a capacity of 12,000 tonnes has been commissioned, even as the company is contemplating to commission the balance capacity of 15,000 tonnes by October 2025. It has also been providing specialised process piping solutions for industries, such as power (including nuclear), process industries and chemicals.
Additionally, Rs90 crore will be invested in establishing a seamless pipe manufacturing facility, specialising in high wall thickness pipes, with a planned annual production capacity of 7,000 tonnes per annum. This seamless pipe facility is expected to be commissioned by January 2026. Seamless pipes are the primary raw material which on machined and processed are converted into specialised piping products.
The company has integrated cutting-edge automation and semi-automation technologies into the plant, optimising production efficiency and operational precision. Besides, the facility adopts lean manufacturing principles, reducing material handling and further enhancing overall production effectiveness.
Of the total Rs260 crore investment, an initial Rs150 crore has already been brought in, partly through bank borrowing (Rs40 crore). The balance investment (Rs110 crore) will be entirely funded through debt.
“The facility is a key element of DDEL’s long-term growth strategy, aimed at catering to the increasing demand for high-quality process piping solutions and high wall thickness pipes,” says Krishan Lalit Bansal, CMD, DDEL. “As we aim to increase our revenue threefold over the next three-to-five years, this Anjar facility will drive operational efficiency and help enhance the EBIDTA margin. We are the largest player in process piping solutions in India in terms of installed capacity today”.
Rising demand
“This significant investment is integral to our strategy to capitalise on growing opportunities in the oil & gas sector,” adds Bansal. “The new facility will enable the company to effectively meet the rising demand for high-quality process piping solutions and thick seamless pipes, positioning us to benefit from orders within this industry. Market research projects a 7 per cent annual growth rate for the sector over the next decade, driven by technological advancements and rising demand for oil, gas, and hydrogen solutions”.
As the company is committed to fostering economic growth in Anjar and the broader area of Gujarat, this new facility, spanning over 47 acres, will have a significant impact on the local community by generating around 100 direct employment opportunities and around 500 additional jobs. Beyond direct employment, the plant will also contribute to the local economy by creating demand for various support services and businesses.
Incorporated in 1988, DDEL now has an order book of about Rs1,300 crore and enjoys a total production capacity of 112,500 tonnes. The company has seven strategically located manufacturing facilities at Palwal (Haryana), Anjar (Gujarat), Barmer (Rajasthan), Numaligarh (Assam) and Bangkok (Thailand).
As part of its specialised process piping solutions, the company makes and supplies piping products, such as high-pressure piping systems, piping spools, high frequency induction pipe bends, LSAW pipes, industrial pipe fittings, pressure vessels, industrial stacks, modular skids and accessories, including boiler super-heater coils, de-super heaters and other customised manufactured components.
The company which, at present, exports about 60 per cent of its production, aims to increase its domestic share going forward, as some of its target sectors like the power sector is now gradually bouncing back. It exports to clients in Asia, Europe, the Middle East and the Americas.
DDEL’s customers include global companies such as JGC Corporation, Nooter Eriksen, MAN Energy Solutions SE, Mitsubishi Heavy Industries and John Cockerill SA, as also Indian companies, such as Reliance Industries, Thermax Babcock & Wilcox Energy Solutions, HPCL-Mittal Energy, Toshiba JSW Power Systems, UOP India, Doosan Power Systems and Andritz Technologies.