Bihar Tubes Ltd is charting an aggressive growth path ahead with expansion planned in Maharashtra (India) and is at an advanced stage of finalizing a diversification into API grade pipes, precision automobile tubes, infrastructure pipes and stainless steel pipes. Bihar Tubes has entered into an agreement with Japan-based tube pipe supplier Kusakabe to set up a JV company with capacity of 12,000tpa stainless steel pipes and tubes in India. Project cost for the first phase is estimated to be USD 5 million, which would be financed partly by an equity infusion of USD 1.65 million, 20% of the equity stake would be brought in by Kusakabe against payment in cash, while the balance 80% stake will be initially held by Bihar Tubes. The balance would be funded in the form of bank loans. Applications for stainless steel pipes and tubes include heat exchangers, boilers, condensers refrigeration, instrumentation, hydraulics fuel injection, exhaust systems for automobiles, general piping for power plants, space applications and special piping for nuclear applications. Its JV with Kusakabe would cover all products, except the automotive market serviced by Kuma Stainless Tubes, the other India-based JV company of Kusakabe.
