Global pipe manufacturer Welspun Corp’s associate company, East Pipes Integrated Company for Industry (EPIC), has secured a contract from Saudi Aramco worth over ₹1,000 crore for the production and supply of large-diameter steel pipes.
What Happened: The contract will bolster Welspun Corp’s financials in the second and third quarters of fiscal years 2024 and 2025, the company said in an exchange filing. The 13-month-long contract comes in addition to a massive ₹4,000-crore deal announced with Aramco in May 2023.
EPIC, a manufacturer of helical submerged arc welded pipes in Saudi Arabia, is now poised to secure more projects in the country’s water and oil & gas sectors. EPIC’s manufacturing facilities, execution track record and customer-centric approach have positioned the company favorably in these sectors, the company said.
The recent contract aligns with Saudi Arabia’s strategic objectives under the Vision 2030 initiative, the filing added.
Why It Matters: This new contract fortifies the strong business relationship between EPIC and Saudi Aramco, the world’s third-largest company. It also underlines the growing influence of Indian companies in the global energy industry.
Get all the latest Share Market trends and news to set you up for the week ahead.
The deal serves to further consolidate EPIC’s position in Saudi Arabia’s booming oil and gas sector, providing a significant boost to its future growth prospects.
Price Action: Welspun Corp’s share price was up 0.67% at ₹482 in the early hours of trade on Friday.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.