Lalbaba Seamless Tubes' Recent Developments: Udaan & New Stainless Steel Division

Chief Operating Officer of

Seamless Tubes, has been heading the operations at Lalbaba

Seamless Tubes for more than 5 years now and under his able leadership, the company has become one of the leading suppliers in the cold drawn seamless segments to various industries, as well as establishing the company as a reliable supplier with foreign clients. The company has also forayed into the stainless steel segment under his guidance. In an interaction with Tube & Pipe India, he shares Lalbaba Seamless Tubes' journey, technology and business roadmap, recent developments, and future plans.

Tube & Pipe India: Could you please give us a brief outline of the business journey of your company along with its crucial milestones?

Mr. Nikunj Dhanuka: What started as a microenterprise in 1964 with a small pneumatic forging and fabrication unit in Howrah, went on to become a leading and preferred supplier to the Indian Railways as well as other OEMs. Lalbaba Engineering Group has a global presence in more than 20 countries, and the name is synonymouswithqualityandreliability.

Lalbaba first offered air brake pipes in 1991, and has been the leading supplier of air- brake pipes to the wagon industry. Our dominance in this sector is evident, with an estimated market share of nearly 60 percent. This accomplishment exemplifies our deep industry expertise andthetrustourcustomersplaceinourproducts.

Lalbaba Seamless Tubes, our flagship unit, was established inHaldia,WestBengal,in2009.Initiallyfocused oncarbon alloy steel seamless pipes, we expanded our portfolio in 2021 to include stainless steel seamless pipes and tubes. This strategic decision has catapulted us to become the largest producer of cold-drawn seamless tubes in India, with an installed capacity of 72000MT or 50,000 kms per annum. Our state-of-the-art manufacturing facility and cutting-edge technology have played a pivotal role in our success.

Drivenbyanunwaveringpursuitofperfection,wehavealso ventured into the world of engineering, leading to the establishment of three manufacturing plants equipped with some of the finest facilities in eastern and western India. These plants include Lalbaba Seamless Tubes Private Limited in Haldia and Ahmednagar, Lalbaba Industrial Corporation Private Limited in Uluberia, and PEWEngineeringPrivateLimitedinHowrah.

TPI: Please share details about your product portfolio, including its key strengths and applications?

ND: Our product portfolio consists of cold drawn seamless tubes & pipes, which are utilized in a wide range of applications such as heat exchangers, boilers, oil & gas industry, automobiles, bearings, hydraulic cylinders, mechanicaltubing,mining,andprecisiontubes.

Ourproductbasket'skeystrengthsinclude:

● Achieving precise wall thickness and diameter measurements

● Exceptionalsurfacefinish

● Highdurability

● Superiormechanicalproperties

● Particularly suitable for critical forming processes like 1DBends

● Bright annealed pipes for select customers in India & abroad

TPI: Could you shed some light on your company's market footprint and clientele, as well as any expansion plans?

With a total installed output capacity of 72,000 metric tons per year, we operate a mother plant consisting of five bays, a semiautomated Udaan plant, and PEW engineering for railway products.

ND: Lalbaba Seamless (LBST) is a prominent worldwide manufacturer of cold drawn seamless steel pipe products, boasting a strong track record and extensive industry connections. The company offers a diverse range of products, including carbon alloy seamless & stainless pipes andtubes.

LBST operates multiple manufacturing facilities throughout India and caters to various sectors. Its products are widely utilized in oil and gas exploration and transportation, power generation, water supply for drinking, drainage, irrigation, automotive industry, mining, and other industrial applications. The company's esteemed clientele comprises renowned global oil and gas producers such as IOCL, Reliance, BPCL, Haldia Petrochemicals, both government and private entities, as well as notable engineering and procurement firms like L&T Hydrocarbon, Toyo, Technip, Tata Projects, and Megha. Additionally, LBST serves the power sector, collaborating with esteemed companies like BHEL, GE, L&T Mhps, ISGEC, Thermax, Thyssenkrupp, among others.

With the eventual goal of becoming the largest cold drawn seamless tube manufacturer in the world, LBST continues to expand its presence by establishing facilities in close proximity to major markets in the automobile, hydraulic, and hydrocarbon sectors. LSBT believes that the seamless tube market has been restricted due to lack of options, and with the changing global landscape, customers are looking atnearshoringtheircriticalvendors.

TPI: What is your perspective on the future of the tube and pipe industry? How do you anticipate the market evolving?

ND: LBST's primary objective is to provide value to its customers and stakeholders through the delivery of highquality products. The company plays a crucial role in the global supply chain by leveraging information technology anditsstrongmanagementcapabilities.

Based on the April 2022 report by the Asian Development Bank (ADB), it is anticipated that Asia region will continue to experience robust GDP growth of 5.3 percent in 2023, thus it is expected that the demand will continue to be robustinthepipesegmentaswell.

While the Indian economy is gradually recovering from the contraction caused by the COVID-19 pandemic, there are still risks associated with the ongoing pandemic and geopolitical tensions, particularly with the Russia-Ukraine conflict. These factors contribute to an uncertain future for the economy. However, despite the challenges, India has the potential to become one of the world's fastest-growing major economies. Positive business conditions, robust industrial output, and healthy export growth are expected to drive India's GDP growth in 2023-24, which is forecast byRBI@6.5percent.

LBST operates with a well-diversified business model, strategically located in different markets and serving various industries and customers. This approach helps mitigate risks and enables the company to perform well even in challenging economic and geopolitical situations. The company maintains a balanced presence in both domestic and export markets and operates through four strategicbusinessunits.

Asforthefutureofthetubeandpipeindustry,itisaproduct that finds application in every walk of life, from water lines to sanitation, oil and gas to renewables, automotive – both ICE and EV, the list is endless. As such the industry will continue to grow rapidly. However, I strongly believe that fast growing economies like India will start to migrate more towards seamless pipes and tubes instead of welded as safety and life cycle costs become a bigger factor, similar to western economies and also China. It is our goal to be at the forefrontofthischange.

TPI: Could you outline your technology and business roadmap?

ND: At LBST, we have a clear technology and business roadmap in place to guide our growth and development. Our focus is on leveraging advanced technologies and industry best practices to enhance our manufacturing processes and deliver high-quality products to our customers.

In terms of technology, we continually invest in state-ofthe-art machinery and equipment to ensure efficient production and maintain our competitive edge. We stay updated with the latest advancements in tube manufacturing technology and strive to incorporate them into our operations. By embracing innovative techniques and automation, we aim to enhance productivity, improve productquality,andoptimizeresourceutilization.

Furthermore, we emphasize research and development to foster innovation within our organization. Our dedicated team of engineers and experts consistently work on developing new products, improving existing ones, and exploring new applications for our tubes. This enables us to stay at the forefront of industry trends and cater to the evolvingneedsofourcustomers.

On the business front, our roadmap focuses on strategic expansion and diversification. We aim to strengthen our presence in existing markets while actively exploring new market opportunities. By expanding our geographical reach and customer base, we aim to drive growth and increaseourmarketshare.

Additionally, we are committed to building strong partnerships and collaborations with key stakeholders across the supply chain. This includes working closely with our suppliers, distributors, and customers to foster mutually beneficial relationships and ensure seamless operations.

Overall, our technology and business roadmap aligns with our vision of being a leading global player in the seamless tubes industry. Through continuous innovation, strategic expansion,andstrongpartnerships,weareconfidentinour ability to achieve long-term success and deliver value to our customers.

TPI: Could you please elaborate on the infrastructure, manufacturing capabilities, and machinery installed at your facility?

ND: Lalbaba Seamless Tubes Private Limited, a subsidiary of Lalbaba Engineering, is a prominent manufacturer of cold drawn seamless tubes and pipes. Our facility has a comprehensive infrastructure spread across more than 16 acres, equipped with state-of-the-art machinery. With a total installed output capacity of 72,000 metric tons per year, we operate a mother plant consisting of five bays, a semi-automated Udaan plant, and PEW engineering for railway products. Our presence extends throughout Eastern and Western India, serving various industries such as railways, oil & gas, automobiles, hydraulics, boilers, and powerplants.

In terms of equipment, we have five piercing mills, three STPplants,multipledrawbenches,andpilgermachines,all of which enable us to meet the requirement of our customers. We operate round-the-clock with over 1200 employees and have both LPG and electric reheating furnaces, as well as annealing, solution annealing, and brightannealingfurnacesforheattreatmentpurposes.

At LBST, we prioritize quality and strive to maintain a reputation for delivering seamless tubes of exceptional qualityatcompetitiveprices.Toachievethis,weemploythe latest technologies, highly trained personnel, and ample resources. Our testing facilities include advanced equipment such as a spectrometer for chemical analysis, brinell hardness tester, universal tensile testing machine, hydra tester, ECT, and ultrasonic testing. Moreover, our labs are NNDL accredited, ensuring the highest standards andproductexcellence.

We manufacture a wide range of grades to cater to different requirements. For carbon steel, we produce grades such as MS1010, MS1018, T5, T11, ST52, and more. Additionally, we manufacture stainless steel grades including SS304, SS304L,SS316,SS316L,andSS316T.

PEW Engineering, an integral part of the Lalbaba Engineering Group, operates manufacturing facilities in Howrah and Haldia. It specializes in producing essential components for air brake systems, such as slack adjuster type IRSA600 and IRSA750, air brake pipes, and double ferrule fittings. We also undertake retrofitting and furnishing projects, with a newly formed vertical dedicated to interior refurbishment and alterations in passenger coaches. Our facility is equipped with numerous CNC machines, making us one of the leading suppliers of components in the industry. We have a strong presence in the export of railway components, serving esteemed customers such as Tanzania Railways, Ghana Railways, Uganda Railways, Royal Cambodia Railways, Myanmar Railways, and CRRC Group in China. Quality assurance is a top priority, and all critical components and assemblies undergo rigorous testing in our NNDL accredited labs.

TPI: What recent developments have taken place at your company?

ND: In our company, we have recently made significant investments towards achieving our ambitious growth plans forthefuture.

In 2022, we successfully established a new semi-automated plant called Udaan, which has been operating at full capacity. This plant utilizes cutting-edge technologies and advanced manufacturing processes to produce a monthly output of 1800 metric tons of carbon steel seamless pipes. Our objective in establishing this plant was to reduce manual intervention and ensure the delivery of top-quality products to our customers. Udaan operates as a high-end Continuous Drawing System (CDS) automated plant, offering online facilities with a lead time of 10 hours, with upto70%reductioninmanufacturingleadtime.

In response to growing environmental concerns, we have installed an electric induction furnace for billet heating in our new Stainless Steel (SS) bay. This furnace operates with zero carbon emissions, making a positive impact on the environment. The new SS bay allows us to supply 6000 metric tons of SS tubes annually, further reinforcing our commitmenttosustainablepractices.

To foster skill development and enhance industry knowledge among our newly hired employees, we have introduced a comprehensive learning and training program named Gurukul. This program spanning over three months, combines two months of classroom training and one month of on-the-job training under the guidance of industry experts. Gurukul covers 12 subjects in detail, equipping participants with essential knowledge and job skills. Through interactive sessions and engaging activities, Gurukul provides a memorable learning experience for our employees.

TPI: Please tell us about your future plans.

ND: Our future vision revolves around establishing a remarkable presence in the seamless industry and expandingouroperations.

We also aim to focus on the production of SS seamless tubes, targeting a production capacity of 12000 metric tons per annum. To achieve this, we plan to invest in improved machinery and enhance the skillset of our personnel. The ongoing process includes the installation of two new parallel piercing machines with modern technology, as well as additional pilger machines, draw benches, a bright annealing furnace, and an online solution annealing furnace. These upgrades will enable us to meet our desired production targets while ensuring the quality of our SS tubesthroughimprovedtestingfacilities.Theuseofelectric induction furnace, will also make the production process moreenvironmentfriendly.

Building on our expertise in the rail freight industry, we are aiming to expand globally in the near future. We have already developed a single arm freight pantograph capable of speeds up to 130 km/hr and are currently working on developing dedicated passenger pantographs with a speed potential of up to 250 km/hr. Additionally, we are focusing on manufacturing high reach pantographs for the movement of double stack container trains on the Dedicated Freight Corridor (DFC) of Indian Railways. Our plans also involve manufacturing various types of couplers, including MCA-DA couplers, locomotive couplers, alliance couplers,andslackadjuster.

We are in the process of operationalizing a newly acquired Nagar Plant in Pune. This division of LBST will specifically focus on the production of small-diameter tubes, and cateringtoourcustomersinthewesternregion.

Apr-May 2023

Furthermore, to meet the demands of our global clients and gain more recognition in the western markets, we are planning to establish new manufacturing units in both

European and western countries. This expansion will allow us to cater to a wider customer base and strengthen our positionintheinternationalmarket.