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Business EconomyPosted at: Jan 20 2022 12:17AM


Jindal Saw inks pact with Hunting Energy

Mumbai, Jan 19 (UNI) Pipe manufacturing firm Jindal Saw on Wednesday said it has partnered with Hunting Energy Services to set up India’s first state-of-the-art premium OCTG (oil country tubular goods) threading plant in Nashik, Maharashtra.

Both the companies have entered into a 51:49 joint venture with Jindal Saw having a majority shareholder, the company said in a statement issued here.

The initial investment in this JV will be around USD 20-25 million and the potential annual market size for premium OCTG in India is close to USD 200 million.

"This JV, aligned with the Prime Minister’s vision of ‘Aatmanirbhar Bharat’, would open the doors of premium connection for OCTG from India to various parts of the world and act as import substitution for players in oil and gas drilling activities, thereby making India self-reliant in this segment," the company said.

The company further said the agreement formalises a closer working partnership between the two businesses, following a strategic alliance in 2019 when Jindal Saw and Hunting Energy Services started to develop their presence in the rapidly growing OCTG market in India.
In this JV, Jindal Saw will bring its location-specific capabilities and leverage its expertise in mobilizing the workforce for the project.

In addition, Hunting will provide its patented premium connection technology to thread premium connection on full range of seamless tubing and casing used mainly in deep drilling activities in the oil and gas sector.

"As a result, this JV will become the first in line to have a state-of-the-art premium connection threading facility offering the widest range capabilities in OCTG solutions in India," the company said.

Under the terms of the joint venture agreement, Hunting and Jindal will build a dedicated premium connection threading facility in Nashik province near Jindal’s existing steel mill operations, with a proposed 130,000 sqft manufacturing footprint.
“We are glad to join hands with Hunting Energy Services for this ground-breaking project. Our collective efforts and combined strengths will revolutionize the OCTG manufacturing sector and its usage in the domestic market. Jindal has always been a game-changer in the industry, and this partnership will be a step forward in this evolving industry. Together with Hunting, we will become the first in line to have such a manufacturing facility in India. This JV will add value to our existing line of products and will develop the local ancillary service industry," Jindal Saw GCEO & WTD Neeraj Kumar said.

Speaking on this occasion, Hunting PLC CEO Jim Johnson, said, "The Indian OCTG market provides significant growth potential for Hunting. This partnership will be a game-changer for India and the overall industry, once we start manufacturing premium quality seamless pipes. As we move forward, our plan is to reduce its imports in India. We stand by with the policy of manufacturing best-in-class products locally and hope this joint venture is a concrete step forward towards the “Make in India” initiative as promoted by the Government of India.”
The facility is targeted to be operational by the end of 2022, with three threading lines being commissioned over time with an annual capacity of 50,000 metric tonnes.
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