Composite Pipes Industry LLC (CPI) Oman will set up a manufacturing facility in India with an annual capacity of 5,000MT by 2013, aiming to tap South Asian markets.
CPI Oman is involved in manufacturing and installation of composite pipes and fittings of all types of glass reinforced plastic (GRP), glass reinforced epoxy (GRE) and glass reinforced vinylester (GRV) pipes. With the launch of its India operations, CPI Oman will become the first GRE and GRV pipe manufacturer in India for supplying low and high pressure pipelines to the oil and gas industry.
The company plans to set up its Indian operations with an initial investment of R500mn (RO3.65mn) and expect a modest turnover of R2bn (RO14.6mn) by 2015.
In a recently held press meet in New Delhi, Sheikh Saif bin Hashil al Maskery, chairman of CPI Oman, said that India's oil and gas exploration and production sector has been expanding rapidly and would attract enormous capital investment in future. He said, "As a more eco-friendly and cost-effective mode of transportation, composite pipelines are receiving growing attention, there is a need for strong, light weight materials to replace the heavy, corrosive metallic pipes being used in oil wells/platforms, crude oil transmission lines and lift gas systems in India."
CPI Oman has ambitious plans to leverage on India's strategic geographic location and export its produce from India to South Asian countries like Singapore, Malaysia, Thailand, Indonesia, Vietnam, Sri Lanka and Bangladesh. The company also expects its first big order in India to come through from Oil and Natural Gas Corporation for a 72km long effluent treatment plant pipeline soon.
"India has oil reserves in offshore (Western Offshore Basin and KG Basin) and onshore (in Ankleswar, Ahmedabad, Mehsanah, Digboi, Tripura, Rajahmundry and Karaikal). This augurs well for the industry in India and gives us a formidable reason to have an active business presence here," he added.
"Oil and gas companies have to stop their operations, at times for 1 or 2 months, for changing the traditional pipes every 5-6 years.
"This is a big loss for them. Hence, GRE pipes with a life of more than 20 years prove to be cost effective and intelligent choice in the longer run." Maskery said.
The company also signed an agreement with High Seas for exclusive marketing rights of CPI Oman products in India.
CPI Oman is planning to recruit 200 skilled and non-skilled workers once the plant is operational in India.
CPI started production in Oman in 1999 and has a production capacity of 10000MT now.
CPI Oman has a presence in Qatar, Bahrain, Turkmenistan, UAE, Saudi, Libya the Indian subcontinent markets.
© Muscat Daily 2012
