Established in 1926, The Indian Hume Pipe Co Ltd (IHP) has a network of over 20 factories and more than 100 projects under execution in India. It has earned a reputation for excellence through stringent quality control, timely execution and continuous R&D.
Rajas R Doshi, Chairman & Managing Director, IHP, attributes its improved operating margins for FY14 to diversification of territories to reduce dependence on only a few states and expanding the market reach of pipe products to new territories. ¨We were able to utilise capacities more efficiently and add extra capacity,¨ he adds. ¨Besides, we focused our resources on projects where there was sufficient funding and keenness from the customer to complete them.¨
He reveals that IHP kept its cost of borrowing as low as possible through financial discipline.
IHP has increased its balance orderbook to Rs 2,598 crore, a growth of 66 per cent from the previous year. With the new government giving priority to infrastructure projects such as drinking water and irrigation, funding is expected to be secure. ¨Owing to our CARE rating of A+, we have the ability to raise additional loans to meet working capital needs to execute the additional order inflow,¨ Doshi concludes.