>JINDAL SAW LIMITED (FAIR WEALTH)

Jindal Saw Limited is the flagship company of O.P. Jindal Group, one of the leading groups in India. The company is a leader in Submerged Arc Welded (SAW) pipes that are used for transportation of Oil & Gas and now increased its focus on Ductile pipes which is used for water and waste transportation.

Why to invest in shares of Jindal Saw Limited?

SECTOR:
■ With rising Oil prices, Oil & Gas companies increase their level of exploring and drilling activities. And also, demand is expected to increase with new Oil and Gas finds, and creation and strengthening of national Gas Grid. Players like reliance, ONGC and Cairn are making
investment for setting up pipe infrastructure for Oil & Gas transport.

■ The country is in the midst of huge investments in Oil and Gas pipelines, this will continue for a few more years. Penetration level of pipelines in Oil & Gas transportation is low at 32% as against 59% in the USA and 79% globally, which provide a huge opportunity for
companies like Jindal saw to capture the market.

■ Asia to lead pipe demand with strong growth in energy consumption. Simdex data shows that 33% of the global pipeline demand will come up in asia.

■ The Government has increased budget for Rajiv Gandhi Rural Water mission from at Rs 7400cr, which is a boost for the sector requiring
huge amount of Ductile Iron Pipes.

■ Rs 1200cr is granted for Rural Sanitation program, that will create demand for Ductile Pipes

■ Indian player have the advantage of proximity to the Middle East, which makes Indian imports cheaper than Japan or European

■ Replacement demand for older pipes will also contribute to the growth of the sector.

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