NEW DELHI (Oct. 26, 1:10 p.m. ET) — Composite Pipes Industry LLC Oman is entering India, with plans to set up a 5,000-metric-ton-per-year plant by 2013, with an initial investment of about $10 million. Officials said the company plans to select a site in the second quarter of 2013.
The company manufactures and installs composite pipes and fittings of glass-reinforced plastic, epoxy and vinyl ester.
CPI Oman is expecting a modest turnover of about $40 million by 2015 from its Indian operations and expects its first big order in India to come from the Oil & Natural Gas Commission. The plant also will serve Indian and South Asian companies.
According to Sheikh Saif bin Hashil Al Maskery, chairman of CPI LLC Oman, “The oil and gas exploration and production sector has been expanding rapidly in India and will attract enormous capital investment in future. As a more eco-friendly and cost-effective mode of transportation, composite pipelines are receiving growing attention.”
Demand for composite pipes from the oil and gas sector alone is expected to grow at a 9-10 percent compounded annual growth rate over the next five years.
CPI Oman has annual sales of $25 million. It started production Oman in 1999 and now has annual capacity of 10,000 tonnes.