DEE Development Partly Commissions Rs 2.50 Bn Manufacturing Facility
ECONOMY & POLICY

DEE Development Partly Commissions Rs 2.50 Bn Manufacturing Facility

With an aim of targeting a three-fold rise in total revenue in the next three to five years, Dee Development Engineers, a major player in process piping solutions, announced the commission of second phase of its new, cutting-edge manufacturing plant in Anjar, Gujarat, through which it has enhanced the capacity by 9000 MT per annum and making the operational capacity to 12,000 MT per annum. This facility shall primarily cater to the jobs of oil and gas piping sector.

“The total investment in this state-of-the-art facility amounts to Rs 2.50 billion. Of this, Rs 1.60 billion will be allocated to the process piping solutions plant, which has an annual capacity of 27,000 metric tonnes. Till now the capacity of 12,000 MT has been commissioned and company is contemplating to enhance the balance capacity of 15,000 MT shall be commissioned by October 2025. Additionally, Rs 900 million will be invested in establishing a seamless pipe manufacturing facility specializing in high wall thickness pipes, with a planned annual production capacity of 7,000 metric tonnes. This seamless pipe facility is expected to be commissioned by January 2026” said Krishan Lalit Bansal, Chairman & Managing Director, DEE Development Engineers.

Of the total Rs 260 crore investment, an initial Rs 1.50 billion has already been invested, partly financed by bank borrowing of Rs 40 million. The balance investment, amounting to Rs 1.10 billion, will be entirely funded through debt.

“The facility is a key element of Dee Development Engineers' long-term growth strategy, aimed at catering to the increasing demand for high-quality process piping solutions and high wall thickness pipes.” Mr. Bansal said that over the next three to five years, the company is targeting a three-fold increase in revenue. The facility will drive operational efficiency and enhance the EBITDA margin.

This significant investment is integral to Dee Development’s strategy to capitalize on growing opportunities in the oil and gas sector. The new facility will enable the company to effectively meet the rising demand for high-quality process piping solutions and thick seamless pipes, positioning us to benefit from orders within this industry.

This new facility, spanning 47 acres, will have a significant impact on the local community by generating approximately 100 direct employment opportunities and around 500 additional jobs for labourers. Beyond direct employment, the plant will contribute to the local economy by creating demand for various support services and businesses. Dee Development is committed to fostering economic growth in Anjar and the broader Gujarat region

Dee Development has integrated cutting-edge automation and semi-automation technologies into the plant, optimizing production efficiency and operational precision. Additionally, the facility adopts lean manufacturing principles, reducing material handling and further enhancing overall production effectiveness.

This plant is an integral part of Dee Development's long-term growth strategy, designed to meet the increasing demand for advanced process piping solutions in the oil and gas industry. Market research projects a 7% annual growth rate for the sector over the next decade, driven by technological advancements and rising demand for oil, gas, and hydrogen solutions. The company anticipates reaching its full production capacity of 27,000 metric tons of process piping solutions by October 1, 2025, with seamless pipe production slated to begin wef 1st January 2026.

With an aim of targeting a three-fold rise in total revenue in the next three to five years, Dee Development Engineers, a major player in process piping solutions, announced the commission of second phase of its new, cutting-edge manufacturing plant in Anjar, Gujarat, through which it has enhanced the capacity by 9000 MT per annum and making the operational capacity to 12,000 MT per annum. This facility shall primarily cater to the jobs of oil and gas piping sector. “The total investment in this state-of-the-art facility amounts to Rs 2.50 billion. Of this, Rs 1.60 billion will be allocated to the process piping solutions plant, which has an annual capacity of 27,000 metric tonnes. Till now the capacity of 12,000 MT has been commissioned and company is contemplating to enhance the balance capacity of 15,000 MT shall be commissioned by October 2025. Additionally, Rs 900 million will be invested in establishing a seamless pipe manufacturing facility specializing in high wall thickness pipes, with a planned annual production capacity of 7,000 metric tonnes. This seamless pipe facility is expected to be commissioned by January 2026” said Krishan Lalit Bansal, Chairman & Managing Director, DEE Development Engineers. Of the total Rs 260 crore investment, an initial Rs 1.50 billion has already been invested, partly financed by bank borrowing of Rs 40 million. The balance investment, amounting to Rs 1.10 billion, will be entirely funded through debt. “The facility is a key element of Dee Development Engineers' long-term growth strategy, aimed at catering to the increasing demand for high-quality process piping solutions and high wall thickness pipes.” Mr. Bansal said that over the next three to five years, the company is targeting a three-fold increase in revenue. The facility will drive operational efficiency and enhance the EBITDA margin. This significant investment is integral to Dee Development’s strategy to capitalize on growing opportunities in the oil and gas sector. The new facility will enable the company to effectively meet the rising demand for high-quality process piping solutions and thick seamless pipes, positioning us to benefit from orders within this industry. This new facility, spanning 47 acres, will have a significant impact on the local community by generating approximately 100 direct employment opportunities and around 500 additional jobs for labourers. Beyond direct employment, the plant will contribute to the local economy by creating demand for various support services and businesses. Dee Development is committed to fostering economic growth in Anjar and the broader Gujarat region Dee Development has integrated cutting-edge automation and semi-automation technologies into the plant, optimizing production efficiency and operational precision. Additionally, the facility adopts lean manufacturing principles, reducing material handling and further enhancing overall production effectiveness. This plant is an integral part of Dee Development's long-term growth strategy, designed to meet the increasing demand for advanced process piping solutions in the oil and gas industry. Market research projects a 7% annual growth rate for the sector over the next decade, driven by technological advancements and rising demand for oil, gas, and hydrogen solutions. The company anticipates reaching its full production capacity of 27,000 metric tons of process piping solutions by October 1, 2025, with seamless pipe production slated to begin wef 1st January 2026.

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