US duty on Chinese pipes to benefit Indian cos: Ratnamani

The US Commerce department has imposed preliminary duties on Chinese pipes ranging between 10.9-30.7% on steel pipes. The average duty on pipes will be 21.3%. The final decision on duties is expected by November, 2009.

Commenting on the development, Prakash Sanghvi, CMD, Ratnamani Metals & Tubes , said Indian pipe manufacturers would be benefitted from the ban on Chinese products.

He further said, the company had a good export potential in the stainless steel pipes segment. “The company’s 30% of the order book comes from export,” he said. The company planned to expand its capacities in power segment and was foraying into value added products, Sanghvi added. “The company's topline in FY10 is likely to slightly lower than FY09 but profitability would be maintained,” he said.

Here is a verbatim transcript of the exclusive interview with Prakash Sanghvi on CNBC-TV18. Also watch the accompanying video.

Q: What have you read of the ban that US has imposed for Chinese exporters and what might it mean for a company like yours?

A: Certainly, Indian pipe manufacturers would be benefitted because many companies are exporting pipes from here, where a huge capacity had been created in last 2-3 years. So, certainly all the pipe manufacturers have a benefit from the ban on Chinese products in the US.

Q: What is the kind of traction that you are seeing from EPC Contracts now for stainless steel pipes before we talk about the Oil and gas space?

A: Stainless Steel pipes go to all industries like refineries, petrochemicals, fertilizers, power plants and now there we have a good export potential also. We are exporting in all developing countries like US, Europe, Japan, Korea, Middle East.

Q: Your current orderbook is about Rs 350 crore can you break that up into how much is via exports?
A: Its about 30% from exports and the rest all is from the domestic, pharma sector, oil and gas, refinery, chemical plants.
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