Welspun Corp Announces ₹2,280 Crore Expansion in US and Jordan Alongside Q2 Results

Welspun Corp Ltd has approved investments of up to ₹2,280 crore across the United States and Jordan to expand its steel pipe manufacturing footprint. The move is aimed at addressing demand from oil and gas pipeline projects as well as large-scale infrastructure development.

The company will allocate up to ₹1,093 crore to augment spiral pipe manufacturing capacity at its existing facility in Little Rock, Arkansas, in the US. This expansion will add 2.25 lakh tonnes per annum of high-frequency submerged arc welded (HSAW) pipe capacity to the existing 3.5 lakh tonnes, bringing the total capacity at the facility to 5.75 lakh tonnes per annum. Funded through internal accruals, the additional facility is expected to become operational in March 2028. Welspun Corp noted that a robust order book, strong demand, and long-term visibility in the US oil and gas pipeline market drove the investment decision.

Additionally, the company will invest approximately ₹1,188 crore, jointly with Perma-Pipe, to establish pipe manufacturing and coating facilities in Jordan. This project will be funded approximately equally by Welspun Corp and Perma-Pipe, and will feature spiral pipe manufacturing and advanced coating facilities capable of producing pipes ranging from 24 inches to 120 inches. These facilities are intended to serve water, oil and gas, energy, and infrastructure projects in Jordan and surrounding regional markets.

The partners previously signed a memorandum of understanding with the developers of Jordan’s National Water Carrier Project and the Jordanian government in September. With the board's approval now secured, definitive agreements covering governance and operational arrangements are expected to be executed in due course. Welspun Corp stated that the Jordan venture could also support future infrastructure and reconstruction requirements in neighbouring markets, along with potential opportunities linked to regional oil and gas infrastructure routed towards the Port of Aqaba.

In a separate development, the board approved a joint venture with Perma-Pipe Qatar for internal fusion-bonded epoxy (IFBE) coating operations in India. Under this arrangement, Welspun Corp will hold a 49% stake in Welspun Special Coating Pvt Ltd, while Perma-Pipe Qatar will own the remaining 51%. The estimated investment of up to ₹110 crore for this venture will be shared in proportion to the partners' respective stakes.

These strategic announcements accompanied the release of Welspun Corp’s September-quarter financial results on Thursday. For the quarter, the company reported a consolidated net profit increase of 3% year-on-year to ₹499 crore, while revenue from operations grew by 6% to ₹4,644 crore.

"Welspun Corp's strategic capital allocation toward expanding its manufacturing footprint in the US and Jordan demonstrates a disciplined approach to capturing long-term global infrastructure and energy demand. By backing these capital expenditures with internal accruals and strategic joint ventures like the one with Perma-Pipe, the company is effectively mitigating project risks while scaling capacity to match visible market pipelines. For businesses operating in traditional sectors, aligning capacity expansion with established regional demand frameworks remains a reliable pathway to steady top-line and bottom-line growth." — Dr. Shishir Gupta, Founder & CEO, StartupLanes