Global Seamless Tubes & Pipes Private Limited is coming up with a new facility “Global 2” near its existing mill in West Bengal for the exclusive production of stainless steel. It’s also establishing its first production facility in the US. This was revealed by Ms. Suman Islam, Senior Marketing Manager, Global Seamless Tubes & Pipes Private Limited, during an interaction with Tube & Pipe India.
Tube & Pipe India: Kindly walk us through your illustrious business journey, highlighting major achievements and crucial milestones.
Suman Islam: Global Seamless Tubes & Pipes Private Limited was started in 2019. Soon after we set up our business, Covid-19 happened. It was a hard-hitting year and everyone suffered immensely. However, we overcame this. The year 2022 turned out pretty good for the steel industry. We did very good business in 2022 and 2023. I’ve been in this industry for the past 12 years. I’ve seen some really tough times and upsurges as well. Though the market right now is a bit slow and somewhat sleepy due to some odd political reasons, Global Seamless believes that it is slowly moving on a progressive path. The business will hopefully be up very soon.
TPI: What does the product basket of Global Seamless contain? Which are the industries where your products find application?
SI: We are a leading manufacturer of seamless tubes and seamless pipes, specializing in the production of hot-finish and cold-drawn carbon steel seamless tubes. Our products find application in various sectors, such as oil & gas, the offshore industry, and the heat exchangers & boilers segment. We have been doing good business for the last 5-6 years in the heat exchangers & boilers and the alloy industry.
We are establishing our first production facility in the US with an investment of USD 35 million.
TPI: Kindly tell us about your market footprint and major clientele.
SI: In domestic market, our products are well placed with segments namely automobile/energy, structural and railways. We have a strong footprint in the United States of America and the current situation out there is uncertain. We will have some clarity only after the US elections in November 2024. Due to polls in that country, big projects such as those regarding the oil and gas sector have been put on the back burner and our Europe segment business are catching up.
We plan to set up a new unit in India for the exclusive production of stainless steel. We have purchased an area of 2 lakh sq ft for the purpose, calling it Global 2.
TPI: What are some of the challenges currently being faced by the industry? How can the government help in overcoming these challenges?
SI: We are facing a few problems, especially in the export of steel. Since steel is a heavy product, it cannot be sent by air. We export our material in fully loaded containers via the sea route. The easiest way for our products to reach their destination markets is through the Red Sea. Right now, there is a surge in commercial freight charges due to several reasons, such as the current geo-political situation. The conflicts between Ukraine-Russia and Israel-Palestine have affected the sea routes, including the Red Sea. Earlier, it would take 40-45 days for the material to reach our clients. Now the time has increased to 120 days. This has resulted in a big spurt, with the prices going almost double or triple the initial amount. It’s hammering the whole export business across the globe. The Union of India can collaborate with international giants in business, and speak to the countries in conflict. It would definitely help the global business scenario.
The price of raw material is also a challenge. I would like to give an example in this context. In Ukraine, there is a single mill having a product range similar to Global Seamless. The Ukraine government made an all-out effort to support it for purchasing raw material. If a small country like Ukraine can do it, the Government of India can also do it. Major Indian steel companies purchase raw material either from the government or certified mills. The government can help local manufacturers by giving subsidies or lowering the price of raw material. This kind of benefit would boost the industry and help in the flourishing of local businesses as well. When it comes to raw material or steel, the Indian products cannot be compared to those manufactured in Vietnam, China or Thailand. The Indian steel has a very high quality and that is why it is costlier. The government can also bring in some protectionist measures for Indian manufacturers.
TPI: Please share recent developments at Global Seamless Tubes & Pipes.
SI: Global Seamless is currently concentrating on two projects – a new production facility in Louisiana, USA; and a new plant in India for the exclusive production of stainless steel. We are establishing our first production facility in the US with an investment of USD 35 million. We have purchased a greenfield on 70 acres at the Texas-Louisiana border, near the main hub of oil & gas and steel. The plant is just a two-hour drive from the main city. We will build a replica of our Indian mill in northwest Louisiana with a similar production capacity. We plan to produce internationally acclaimed seamless steel pipes and tubes from the best raw material, using world-class technology and scientific management there. Two of our Directors have already invested in this ambitious project.
Besides, we are planning to set up a new unit in India for the exclusive production of stainless steel. We have purchased an area of 2 lakh sq ft for the purpose, nearly 4 kms from our existing mill in Bagnan, West Bengal. We call it Global 2. What we’re doing or getting in terms of price or commercial value, stainless steel is three times higher. Many new projects are in the pipeline, but it is too early to say anything about them.
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TPI: Please share your experience at the second edition of Tube & Pipe Fair 2024 in Hyderabad.
SI: The show has turned out really well. We participated in the debutant edition also, which was held in October 2023 in Delhi. We made some great connections and got new customers. The footfall has definitely increased. In this Hyderabad edition, we are looking forward to making our presence felt in the southern regions of the country. We know South India is a very good market for steels & tubes, and hope to capture it.
