Jindal Saw's board approved the incorporation of a step-down subsidiary in the United Arab Emirates (UAE).
The company will enter into a Joint Venture (JV) agreement between Jindal Saw Holdings FZE (JSH) and BUHUR FOR INVESTMENT COMPANY LLC, KSA (Buhur) to establish a new company in the Kingdom of Saudi Arabia (KSA) for Helically Spiral welded (HSAW) pipe project.
Another JV agreement between JSH and RAX United Industrial Company, KSA (RAX) will lead to a new company in KSA for a Ductile Iron Pipe project.
The UAE subsidiary aims to set up a 300,000 tons per annum (TPA) capacity Seamless Pipe Manufacturing Facility in Abu Dhabi, catering to the Oil & Gas Sector of the MENA region.
The company will acquire 100% shareholding in UAE step-down subsidiary with a cost of upto USD 105 Million (₹877.13 Crore approximately).
Jindal Saw will have 51% shareholding in both KSA Joint ventures.
The investment in BUHUR FOR INVESTMENT COMPANY LLC will be upto USD 10 Million (₹83.53 Crore approximately) and RAX United Industrial Company, KSA will be upto USD 3 Million (₹25.06 Crore approximately).
The projects are expected to complete in approximately 3 years for UAE, 2 years for Helically Spiral welded (HSAW) pipe project and 12-18 months for DucƟle Iron Pipe project.