Snippets from Annual report 2023
Key Points:
- Founded in 1973 as a steel pipes manufacturer
- Launched lighting division in 1985
- Launched PVC pipes in 2010, consumer durables in 14–15
- #1 in Manufacturer and Exporter for GI Pipes Leading API Pipe manufacturer Among top 3 Black Pipes manufacture
- #2 consumer lighting manufacturing brand in India
- Owner of brands ‘Surya’ and ‘Prakash Surya’
- Commenced manufacturing of Heavy Structural Hollow Square / Rectangular Section Steel Tubes (up to 300 * 300 mm) of sizes > 6 mm to 12 mm with Direct Forming Technology (DFT) at Malanpur (M.P.) with an installed capacity of 36,000 MTPA
Capacity expansion:
1)DFT Plant — Large-dia section pipe facility with Direct Forming Technology (DFT) at Gwalior, adding a capacity of 36,000 MTPA of new product categories.
2)GP and CR Coils/Pipe Facility — Outlay of ₹ 75 crore at Hindupur, Andhra Pradesh to manufacture GP and CR coils/pipe. The purpose of this project is to ensure the availability of GP and CR coils at a cost lower than the market price, catering to the South Indian market.
3)Large-dia Pipe (18’’ to 24’’) — New ERW Pipe Mill to meet the increasing demand for larger diameter pipes, ranging from 18” to 24”, with an investment of ₹ 75 crore. Cater to the oil and Gas markets and significant demand generated by numerous irrigation and water distribution projects initiated by the Government of India.
Opportunities ahead:
- 1 Water: Har ghar nal. 70,000 cr allocation to jal jeevan scheme in 2023–24. GI pipes in rural areas will see a lot of demand.
With the total estimated requirement of GI pipes envisaged under Jal Jeevan Mission scheme stands at approx. 15,00,000 M.T for supplies till 2024, Surya, leading manufacturer of GI Pipes with capacity of 3.60 lakh M.T. will be immensely benefited -
2 Oil and gas: Processing capacity of oil and gas sector will reach 298 MMt by 2025 from current 250MMt .
In 2022–23 Surya secured orders from oil and gas refiners for 3LPE-coated steel pipes for CGD.
Offerings for the oil & gas sector are approved by the American Petroleum Institute (API).
3LPE coating line is set to further bolster its capabilities in the oil & gas and city gas distribution sector. -
3. Infrastructure: Construction and building sectors account for around 60% of the end-use steel consumption in the domestic market. Flagship schemes like ‘Pradhan Mantri Awas Yojana’ and ‘Jal Jeevan Mission’ are positive indicators for the long steel and pipe manufacturers.
The proposed investment of ₹ 75,000 crore for 100 critical transport infrastructure projects and the increased capex for infrastructure development to ₹ 10 lakh crore in the Budget will fuel demand for steel pipes - 4. Natural gas share to increase from 6% to 15%. Increase pipeline coverage from 21,735 km to 34,500 km. Surya roshini products like API, 3LPE, coated and spiral cater to this sector. Surya also has 850cr worth of order from this sector to cater to gas connectivity in Rajasthan, Bihar, Jharkhand and West Bengal.
- 5. Exports: Surya Roshni’s DFT technology facility in Malanpur puts the Company in a prime position to capitalize on emerging opportunities in the inch-to-inch market for section pipes in the US and Canada.
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6. Lighting and consumer durables: With 99% electricity coverage in 2022, demand for consumer durables has increased. Also, co offers innovative LED lighting solutions for Government’s various projects. Also co recently started a manufacturing facility for LED components under the large investment category to expand into the FMEG categories.LED market to grow globally between 20–27% and market size to hit 11.9B$ by 2028.
The Government of India is undertaking various initiatives to promote the usage the LED lights. For instance, under the Street Lighting National Program (SLNP), over 2.1 million incandescent and fluorescent streetlights were replaced with LED streetlights across the country
Others:
- Debt has reduced by 176 cr to 404 cr in FY 22–23.
- Lighting working capital days from 60 in 2021–22 to 53 in 2022–23.
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