Hi-Tech Pipes Commences Kathua Production, Nears 1M Tonnes Capacity

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AuthorAarav Shah|Published at:
Hi-Tech Pipes Commences Kathua Production, Nears 1M Tonnes Capacity
Overview

Hi-Tech Pipes Limited has started commercial production at its new Greenfield facility in Kathua, Jammu & Kashmir. The plant adds 80,000 tonnes of annual capacity, pushing the company closer to its goal of 1 million tonnes per annum. This expansion aims to enhance its portfolio of value-added steel products and leverage logistical advantages for regional markets, supporting its strategy for profitable growth.

Hi-Tech Pipes Limited has officially commenced commercial production at its new Greenfield manufacturing facility in Kathua, Jammu & Kashmir. This strategic move is set to significantly bolster the company's output and market reach.

New Facility Details

The state-of-the-art Kathua plant boasts an annual capacity of 80,000 tonnes. It is equipped with advanced automation and quality-control systems, focusing on producing ERW steel pipes and various value-added steel products. This expansion brings Hi-Tech Pipes closer to its target of 1 million tonnes per annum (MTPA) total installed capacity.

Strategic Market Access

The new unit is strategically positioned to offer logistical advantages. It will ensure cost-effective distribution across key markets in Jammu & Kashmir, Punjab, and Himachal Pradesh. This local presence is designed to meet rising demand in sectors like infrastructure, water distribution, and industrial engineering, optimizing supply chains in Northern India.

Long-Term Growth Strategy

This commissioning aligns with Hi-Tech Pipes' long-term strategy to increase its share of higher-margin, value-added products. The company anticipates improved realisations and EBITDA per tonne from this expansion. The facility is projected to contribute meaningfully to volumes starting mid-Q4FY26, underscoring the company's commitment to operational excellence and sustained profitable growth.

The company's stock has seen recent price action, trading at Rs 96.25 per share on Monday, down 1.21%. Despite this dip, shares remain up by 18% from their 52-week low of Rs 81.56. Hi-Tech Pipes maintains a market capitalization exceeding ₹1,900 crore.

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