Tata Metaliks (TML) derives revenue stream from sales of pig iron and ductile iron (DI) pipes (which uses its captive pig iron).
Ductile iron (DI) pipes are used in long distance transportation of water (drinking and sewage). Close to half the Indian households are deprived of potable water connection, sewage network penetration is worse.
Under Government’s AMRUT scheme, Government plans to establish robust sewage networks and water supply for urban transformation. This provides huge opportunity for players in business of DI pipes that has Ltd. competition.
Tata Metaliks is aiming at complete forward integration into high margin ductile iron pipeline, moving away from low margin commoditized pig iron business. It is also undertaking various backward integration and cost cutting initiatives, largely replicating the best practices of its parent Tata Steel.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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