### **Overview** DEE Development Engineers Limited (DDEL) is India’s largest provider of **process piping solutions** by installed capacity and a globally recognized leader in engineering, procurement, and manufacturing for critical industrial sectors. With over **35 years of experience**, DDEL serves a diversified customer base across **oil & gas, power (including nuclear), chemicals, petrochemicals, refineries, specialty chemicals, pharmaceuticals, and clean energy infrastructure**. The company operates under an integrated *design-led-manufacturing* model, delivering high-precision, customized solutions for complex industrial applications. --- ### **Core Business Segments & Product Portfolio** DDEL offers a comprehensive range of engineered products and turnkey solutions: - **Piping Systems**: High-pressure piping, piping spools, LSAW pipes, industrial pipe fittings, and weld-less induction bends (carbon steel, P91/P92, stainless steel, super duplex, Inconel, Hastelloy). - **Pressure Vessels & Heat Exchangers**: Custom vessels with shells, heads, nozzles, and supports for pressurized gas/liquid applications. - **Modular Skids & Packages**: Pre-fabricated, integrated systems (piping, instrumentation, valves, electricals) enabling fast deployment and reduced on-site costs. - **Industrial Stacks**: 30–140m tall emission stacks for oil, gas, and processing industries. - **Wind Turbine Towers**: Custom towers (20–33m) with platforms, ladders, and fall protection systems. - **Pilot Plants**: A newly launched business vertical focused on **R&D-scale systems** for process validation in oil & gas, petrochemicals, specialty chemicals, pharmaceuticals, and nuclear sectors. - **Seamless Pipes**: High-wall-thickness seamless pipes (up to 120mm) for thermal power plants (800+ MW) and subsea applications. --- ### **Strategic Expansion & Capacity Growth** DDEL is aggressively expanding its **manufacturing footprint and technological capabilities**, with a focus on **backward integration**, automation, and export-led growth. #### **Anjar Facility (Gujarat): Strategic Manufacturing Hub** - **Capacity**: Production capacity (excluding heavy fabrication) has grown from **6,000 to 30,000 MTPA**, with full ramp-up achieved by September 2025. - **Design**: U-shaped layout with advanced automation improves **material handling, reduces labor dependency**, and enhances productivity. - **Logistics Advantage**: Proximity to **Kandla and Mundra Ports** cuts inland transport costs and transit times, improving export efficiency. - **Sector Focus**: Dedicated to **Oil & Gas**, allowing the Palwal facility to specialize in the **Power sector**, optimizing resource allocation. #### **New Projects & Vertical Integration** - **Seamless Pipe Manufacturing Plant**: A ₹110 crore, 7,000 MT/year plant at Anjar, targeted for **commercial production by January 2026**, supports backward integration and improves cost control. - **Greenfield Expansion at Lakhapar (Gujarat)**: ₹240 crore investment in a 52-acre facility to produce **process piping, modular skids, and fittings at 30,000 MTPA**, serving domestic and global markets. - **Numaligarh Facility (Assam)**: 6,000 MTPA capacity commissioned in February 2024, catering to northeastern India’s project demands. --- ### **Entry into High-Growth & Clean Energy Sectors** DDEL is strategically pivoting toward **sustainable and high-margin opportunities**: #### **Green Hydrogen & Industrial Gases** - **Acquisition of Molsieve Designs Ltd (70% stake)**: Enhances technical depth in **hydrogen purification (99.9999% purity), nitrogen generation, ammonia cracking, and oxygen plants**. - **Strategic MoU with International Clean-Tech Partner**: Collaborates on **modular, containerized green hydrogen projects** in India and Thailand. DEE handles local execution, statutory clearances, and after-sales; the partner provides core hydrogen tech. - Supports India’s **National Green Hydrogen Mission** and Thailand’s renewable roadmap. #### **Pilot Plant Business** - Offers full-cycle services: **process simulation, 3D modeling, engineering, fabrication, and installation**. - Targets R&D needs in **oil & gas, refineries, specialty chemicals, pharmaceuticals, and nuclear applications**. - Enables early-stage client engagement and long-term revenue visibility. #### **Carbon Capture & ESG-Linked Projects** - Supplying **customized process piping solutions** for industrial decarbonization and ESG-focused EPCs. --- ### **Operational & Financial Highlights (H1 FY26 – as of Nov 2025)** - **Revenue**: ₹4,938 million (up **30.3% YoY**) - **Operating EBITDA**: ₹799 million (up **46.4% YoY**), margin improved to **16.3%** (from 15.3% in Q1 FY26) - **PAT**: ₹311 million (up **22.1% YoY**), despite higher finance costs from capacity expansion - **Order Book**: **₹13,081 million** (as of Sep 30, 2025), ensuring strong revenue visibility across sectors - **Margins**: Improvement driven by **operational leverage, better fixed cost absorption**, and shift to **high-value-added products** --- ### **Manufacturing & Technology Edge** - **7 Global Facilities**: Spread across **Palwal (Haryana), Anjar, Barmer (Gujarat), Numaligarh (Assam), and Bangkok (Thailand)**, total capacity: **112,500 MTPA**. - **Advanced Technologies**: - Automated robotic welding, CNC heat treatment, no-backing gas welding - Induction pipe bending and precise non-destructive testing (radiography, ultrasonic, phased array) - In-house engineering, 3D modeling, and process simulation - **Subsidiaries**: - **DDEL Thailand**: Fabricates pipe spools and systems for ASEAN markets. - **DFIPL**: Manages Anjar Heavy Fabrication Facility, enabling end-to-end job work to material-supply services. --- ### **Material & Product Mix Strategy** - **Shift from low-value carbon steel** to **high-alloy steels (Inconel, Hastelloy, super duplex, alloy steel)**, improving revenue and margin profile from FY26 onward. - **Heavy fabrication segment** now includes **material supply**, increasing both top-line and bottom-line contributions (scope change, not metallurgy). - Focus on **modular skids, pilot plants, and pressure vessels** for enhanced margin expansion. --- ### **Customer & Market Reach** - **Long-standing Relationships**: Over **35 years** with global blue-chips including: - **JGC Corporation, Mitsubishi Heavy Industries, Reliance Industries, Toshiba JSW, Nooter Eriksen, MAN Energy Solutions, John Cockerill, UOP** - **Global Presence**: Exports to **USA, Canada, Germany, Japan, Italy, Switzerland, Malaysia, Nigeria, and Thailand** - **Geographic Focus**: Strengthening presence in **Middle East, Southeast Asia, and North America** - **Customer Retention**: High switching costs due to **rigorous 24-month qualification processes**, ensuring **recurring business** --- ### **Strategic Advantages** 1. **Scale & Capacity Leadership**: Largest installed capacity in India (112,500 MTPA). 2. **Logistical Efficiency**: Anjar’s port proximity reduces logistics costs. 3. **Technical Expertise**: Capability in complex materials and high-spec engineering. 4. **Diversification**: Across sectors, products, and geographies — reducing cyclical risks. 5. **Innovation & R&D Focus**: Pilot plants, green hydrogen, modular systems, and seamless pipes. --- ### **Risk Management & Contingency Planning** - **Raw Material Volatility**: Managed through pricing adjustments and inventory control. - **Regulatory Risks**: Contingency plans include converting biomass power plants to **biomass pellet plants** or **hydrogen plants** with minimal capex. - **Geopolitical & Macro Risks**: Mitigated through diversified export markets and financial discipline.