Welspun Corp.’s Associate Company in Saudi Arabia enters Into Multiple Contracts With Armaco.

Welspun Corporation limited is among the top 3 Line Pipe Manufacturers globally. With a strong focus on customer-centric solutions and innovation through R&D technology, it offers end-to-end products with exceptional quality. They are diversified in more than 50 countries and are globally recognized leaders in the businesses of steel and steel products. Headquartered in Mumbai, its manufacturing facilities are spread across India, USA, and Saudi Arabia.

About EPIC

East Pipes Integrated Company(EPIC) is a leader in manufacturing helical submerged arc welding (“HSAW”) and has 50% market share in the Kingdom of Saudi Arabia. Its position in the market is a result of technological investments, strategic partnerships, and efficient production systems. EPIC merged with Welspun Corp. Ltd. on July 21, 2020, which led to the ownership and operation of 3 advanced manufacturing units in the industrial city of Dammam. 

The contract

Welspun Ltd. Corp., on June 3rd, said that its associate company, EPIC has entered into multiple contracts with Saudi Armaco worth Rs.3670 Cr and for a duration of 19 months. The deal with Alrawaf Contracting Company is one of these multiple contracts.

Impact

East Pipes has highlighted that the impact of the merger will be seen in Q1FY2024-25 to Q1 FY2025-26. Apart from this, Welspun reported in a stock filing that the impact of this contract will be reported in Q4FY2024-25 to Q4FY2025-26. 

Conclusion: EPIC is known for its customer-focused approach and an impeccable record of executing mega orders. With the help of these multiple contracts, EPIC will continue pioneering by supporting the objectives of Vision 2030 of the Kingdom of Saudi Arabia. The stock of Welspun corporation currently trades at Rs.560 a piece and is up by 2% from its previous day closing price. The stock has a 52-week high and 52-week low of Rs.636.95 and Rs.252.95 respectively.

Disclaimer:

This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.