Maharashtra Seamless Ltd

Maharashtra Seamless Limited (MSL), incorporated on 10th May 1988, is the flagship company of the well-diversified DP Jindal Group. The Company manufacture seamless pipes & tubes with the finest quality and wide product range using the world renowned CPE technology. The Company is engaged in the manufacture of seamless pipes (various capacities), which find application in oil exploration, boilers, pipelines, petrochemicals etc. The plant is located at Raigad, Maharashtra, and is equipped with state-of-the-art machinery. The company has a technical collaboration with Mannesmann Demag Huttentechnik, Germany. MSL uses the world-renowned CPE technology and is capable of producing size range from 3/4' OD to 7' OD in hot finished and from 10 mm OD to 108 mm OD in cold drawn and cold pilgered condition. Besides seamless pipes and tubes, the company also makes large diameter Electric Resistance Welded (ERW) pipes from size 8' to 20' and wall thickness from 3.2 mm to 12.70 mm. As on 31st March 2019, the Company had six subsidiaries, two are wholly owned subsidiary companies registered in India and remaining four are registered outside India. The Company had signed a Memorandum of Understanding (MoU) for continuous supply of Steel Billets in the year 1994-95. MSL agreed with Salosha Investments and Financial Services Ltd and Shree Ambaji Properties Ltd during the year 1995-96 for manufacturing activities. The Company entered into the ERW pipe category in year 2000, which later on was diversified into renewable power generation and rig operations. In September of the year 2000 the company's new project of Electric Resistance Welded (ERW) Pipes for producing 4' OD to 21' OD ERW Pipes with an installed capacity of 50,000 M.T. per annum at Pipe Nagar, Maharashtra was commissioned. In the year 2001-02, the company production capacity was doubled from 50,000 MT to 1, 00,000 MT. During the year 2004-2005, the company entered into joint venture with Hydril LP to manufacture premium joint connections to facilitate company consolidation in both domestic and international markets of seamless pipes by going to new export avenues. In same year of 2004-2005 the company expanded its production facilities, using plug mill technology supported by world class revelers, to manufacture for the first time in India, large size seamless pipes of diameter up to 14 inches and wall thickness up to 40 mm. As on 4th January 2008, the company acquired seamless plant in Romania with an installed capacity of 200,000 TPA. In the same year, the company opened its export branch in USA to facilitate better services and customer support to its large base of Oil Country Tubular Goods (OCTG) and Line pipe customers in USA, Canada and Latin America. In June of the same year 2008, MSL had bagged export orders worth USD 45 million from USA. The company has also received domestic order worth Rs 860 million from Indian Oil Corporation (IOC). MSL plans to set up a 1 million ton per year billet plant in Maharashtra to feed its planned seamless pipe expansion. The backward integration project at Dubri in Orissa is part of MSL's aim to increase pipe capacity to 5,00,000 tons per year from the current 3,50,000 tons. The proposed steel plant will manufacture billets for captive consumption. Estimated to cost USD 44.8 million (about Rs 1800 million), the project involves relocation of the firm's newly acquired pipe plant in Romania to India. The Board of Directors of the Company at its meeting held on 8th April, 2013 had approved the buyback of its equity shares of the face value of Rs. 5/- each from the open market through stock exchanges for an amount upto Rs. 100 crore, and at a price not exceeding Rs. 300/- per share, payable in cash. The Company commenced its scheme of buyback of shares from 14th May 2013 and closed on 7th April 2014. The Company has bought back total of 35,33,796 shares for Rs. 69.21 Crore at an average price of Rs. 195.85. All shares bought back have been extinguished. The paid up capital of the Company after buyback is Rs. 33,49,98,130/- The Company had three wholly owned subsidiaries, as on 31st March 2014, namely Maharashtra Seamless (Singapore) Pte. Ltd., Singapore, Maharashtra Seamless Finance Ltd. and Discovery Oil & Mines Pte. Ltd., Singapore.During the year 2014, a subsidiary of the Company has acquired 20 percent stake in an Iron ore mine in Amapa, Brazil with estimated reserves of more than 250 million tons. During the year 2015, Dev Drilling Pvt. Ltd. ceased to be an associate company and became Joint Venture Company. During the year 2016-17, Zircon Drilling Supplies and Trading FZE was set up as a wholly owned subsidiary of Internovia Natural Resources FZ LLC, UAE, a subsidiary of the company. As on 31 March 2017, the company had 5 subsidiaries, one is wholly owned subsidiary company registered in India and remaining 4 is registered outside India. During the year 2018, Jindal Premium Connections Pvt., Ltd. became a wholly owned subsidiary of the Company. As on 31 March 2018, the company had 6 subsidiaries, two are wholly owned subsidiary companies registered in India and remaining 4 is registered outside India. The Company successfully commissioned and started generation from 20 MW Solar Power Plant at Khetusar, District Jodhpur, Rajasthan. It also commissioned 1 MW rooftop solar power plant at Nagothane and 10 MW captive power plants at Beed Maharashtra. With this Company has achieved a total capacity of 43 MW of Renewable Energy in FY 2018. In FY 2018, the Company successfully defended antidumping case and Department of Commerce of United States of America has removed the antidumping duty order on company which means there is no antidumping duty on OCTG exported to USA. The Company had made investments in a mining asset through its foreign subsidiaries. The subsidiary, holding the mining investments partially impaired the said investments. Accordingly the Company impaired its exposures, partially for Rs. 145.98 Crore during the year 2019. During the year 2020, the Company purchased an Offshore Jack Up Drilling Rig from Star Drilling Pte. Ltd., Singapore, an associate of the Company for USD 100 million. As on 31st March, 2020, the Company had 7 subsidiaries, out of which 3 are wholly owned subsidiary Companies registered in India and remaining 4 are registered outside India. National Company Law Tribunal (NCLT), Hyderabad vide order dated 21st January 2019 had approved the Resolution Plan submitted by the Company for acquisition of United Seamless Tubulaar Pvt. Ltd. (USTPL). The Company had acquired 100% shares of USTPL and also paid Rs 477 Crores to the financial creditors and others, as per Plan approved by NCLT. However, NCLAT vide its judgement dated 8th April 2019 required the Company to deposit additional amount of Rs. 120.54 Crore. Hon'ble Supreme Court vide its judgement dated 22nd January, 2020 confirmed the Resolution Plan approved by NCLT, Hyderabad. In compliance of the directions of above judgement the Resolution Professional handed over the possession of USTPL on 14th February, 2020 and accordingly the Company considered United Seamless Tubulaar Pvt. Ltd. (USTPL) as its subsidiary during the year. The Company commissioned 1.5 MWp Rooftop Power Solar plants at manufacturing sites and 21 MWp Solar Power Plant in Solapur, Maharashtra, both for captive use. As on 31st March, 2022, Company had seven subsidiaries, out of which two wholly owned subsidiary companies and one subsidiary company were registered in India and remaining four, including two wholly owned subsidiaries are registered outside India. Read More