Shares of Surya Roshni Ltd were trading 3% higher on 10 January after the company announced securing a new order worth Rs 81 crore.
Bharat Petroleum Corporation Ltd. (BPCL) has granted a contract for the supply of API SL PSL2 LPE Coated Line Pipes, with diameters ranging from 4 to 16 inches, throughout PAN India. Delivery is expected in 16 weeks, and the total contract value, including GST, is Rs 81.47 crores.
This order is a significant win because it demonstrates that BPCL trusts the business to provide the specialized line pipes it requires for its operations.
The company that awarded the contract has no stake in the promoter, promoter group, or group companies. Furthermore, it is confirmed that the order is at “arm’s length” and is not considered a related party transaction. The company’s dominating position in the delivery of essential infrastructure components for the energy industry is demonstrated by this domestic agreement.
India’s solar energy sector is expanding rapidly due to the country’s ambitious renewable energy targets. In an effort to reduce its carbon footprint and transition to greener energy, India, the world’s third-largest producer of carbon dioxide, is increasingly turning to solar energy. Because of its abundant sunshine, kind laws, and significant investments in solar infrastructure, India has become a global leader in the installation of solar capacity.
Surya Roshni Limited was incorporated in 1973 and has since developed into a significant player in the Indian industrial sector. The company is India’s largest exporter of electric resistance welded (ERW) pipes, its largest manufacturer of galvanized iron (GI) pipes, and its second-largest producer of lighting. Surya Roshni wants to expand the variety of value-added products it sells, including pipes coated with 3LPE and Alkyd. With a dominant 60% market share in ERW pipe exports, the firm is the leading manufacturer of ERW GI pipes in India.
Regarding GI pipes, Surya Roshni is among the top three in North India and a regional leader in South India. The states where the company is ranked highest include Andhra Pradesh, Telangana, Madhya Pradesh, Chhattisgarh, Uttar Pradesh, and Jharkhand. In states like Karnataka, Delhi, Maharashtra, Bihar, Rajasthan, and Uttarakhand, it ranks second.
The solar business is receiving significant support from government policy in the form of tax breaks, subsidies, and favourable laws. Programs such as the Renewable Purchase Obligations (RPO), the Production-Linked Incentive (PLI) program, and tax rebates for solar equipment are encouraging domestic production and the usage of renewable energy.
At 12:42 pm, the shares of Surya Roshni were trading 0.21% higher at Rs 256.30 on NSE.
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