DEE Development Engineers Limited Commences Commercial Production at Seamless Pipe Manufacturing Plant
DEE Development Engineers Limited announced the commencement of commercial production at its Seamless Pipe Manufacturing Plant on March 19, 2026. The plant, located in Revenue Survey No. 28/P1, Village: Lakhapar, Tal: Anjar, Dist: Kutch, Gujarat, will manufacture Seamless Pipes & Tubes with an installed capacity of 7,000 metric tons per annum.The company incurred a total capital expenditure of ₹ 89.74 Crores for the project. This expenditure exceeds the materiality threshold of ₹ 1.38 Crore, as assessed by the management.
DEE Development Engineers Limited received an order of ₹ 58 Crores for seamless pipes on February 27, 2026, and anticipates incremental revenue from the new plant starting in Q1 FY 2026-27. The company projects improvements in EBITDA margins and operational leverage as capacity utilization increases. An immediate material impact on consolidated profit after tax is considered remote during the initial ramp-up phase.
The commissioning of this plant adds 7,000MT per annum of seamless pipe manufacturing capacity, strengthening the company's product portfolio and deepening backward integration. Financial details for each quarter are expected to be reflected in the company's financial results filed under Regulation 33 of SEBI (LODR) Regulations, 2015.
Details of Capital Expenditure Incurred:
| Nature of Capital Expenditure | Amount (INR) |
|---|---|
| Building | ₹ 24.82 Crores |
| Electrical | ₹ 1.55 Crores |
| Plant & Machinery | ₹ 63.37 Crores |
| TOTAL | ₹ 89.74 Crores |
The event was disclosed within 12 hours of occurrence, as required by Regulation 30 of SEBI (LODR) Regulations, 2015, and was simultaneously made to BSE Limited and National Stock Exchange of India Limited. The disclosure was also uploaded on the company's website www.deepiping.com.
Ranjan Kumar Sarangi, Company Secretary & Compliance Officer, made the disclosure.
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