Hariom Pipe Industries has filed an official disclosure with stock exchanges regarding the temporary closure of its Perundurai manufacturing plant following directives from the Tamil Nadu Pollution Control Board (TNPCB). The company received the closure directions on April 02, 2026, and has initiated necessary steps to address regulatory compliance issues.

Regulatory Action Details

The TNPCB issued closure directions under Section 33A of the Water (Prevention and Control of Pollution) Act, 1974, for temporary closure of operations and disconnection of power supply at the company's unit located at SIPCOT Industrial Growth Centre, Perundurai, Erode District, Tamil Nadu. The directions came into effect immediately, with the company receiving the communication at its corporate office on April 02, 2026 at 02:22 PM.

Compliance and Mitigation Measures

The closure directions relate to certain observations concerning environmental compliance under applicable pollution control norms. Hariom Pipe Industries has already initiated necessary corrective measures to address these compliance issues and restore operations at the earliest possible time.

To mitigate potential impact on sales during the temporary shutdown, the company will continue operations through its Telangana unit. The company is assessing the financial impact of the closure while taking steps to minimize operational disruption through alternate production arrangements.

Corporate Disclosure Requirements

The company filed the disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary and Compliance Officer Rekha Singh signed the official communication to both NSE and BSE, ensuring full transparency with stakeholders regarding the regulatory development.

The company remains committed to resolving the compliance matters expeditiously and has assured stakeholders that it will provide updates to stock exchanges as the situation develops. The temporary nature of the closure indicates the company's focus on addressing regulatory concerns while maintaining operational continuity through alternative facilities.

Hariom Pipe Industries Limited presented its comprehensive business strategy and operational highlights at the Kaptify Korporate Konnect event held on March 18, 2026, in Mumbai. The investor presentation showcased the company's position as a leading vertically integrated steel manufacturer with strong presence in southern and western India.

Manufacturing Infrastructure and Capacity

The company operates five state-of-the-art manufacturing facilities across southern India with a total installed capacity of 785,232 MTPA. The manufacturing infrastructure spans approximately 115 acres, with an additional 65 acres available for future expansion.

The company's vertically integrated model enables backward integration from raw materials to finished products, with current cumulative capacity of 264,232 MTPA for raw materials and 521,000 MTPA for finished goods.

Financial Performance Highlights

Hariom Pipe Industries demonstrated robust financial growth with consistent performance across key metrics. The company achieved revenue CAGR of 52% from FY21 to FY25, with revenue increasing from INR 254 crore in FY21 to INR 1,357 crore in FY25.

For the nine months ended FY26, the company reported revenue of INR 1,159.7 crore compared to INR 957.4 crore in 9MFY25, representing 21% growth. EBITDA remained stable at INR 127 crore with margin of 12.55% in 9MFY26.

Market Presence and Distribution Network

The company operates through a comprehensive distribution strategy with 900+ dealers and B2B clients across India. Approximately 80% of sales are conducted through the dealer network, while 20% represents direct B2B sales. The company maintains strong presence in southern and western India, with significant customer coverage across key states.

Sustainability and Renewable Energy Initiatives

The company has implemented significant sustainability measures, including 3.4 MW solar renewable capacity across its facilities. Power costs as percentage of revenue decreased from 13.0% in FY22 to 5.0% in FY25, demonstrating improved operational efficiency.

Through subsidiary Hariom Power and Energy Private Limited (HPEPL), the company is developing a 60 MW AC solar power plant with 25-year power purchase agreement with MSEDCL. The project involves total investment with PNB debt of INR 194.66 crore at 8.80% per annum and equity infusion of INR 22.90 crore.

Product Portfolio and Applications

The company offers over 800 SKUs across 10 major product lines, serving diverse applications including automotive components, infrastructure, water supply systems, and consumer goods. The product range includes MS tubes, galvanized pipes and coils, scaffolding materials, and various value-added steel products with thickness capabilities as thin as 0.4mm.

Value-added product sales demonstrated strong growth with CAGR of 72% from FY21 to FY25, increasing from 27,081 MT to 235,812 MT. In 9MFY26, value-added product sales reached 198,791 MT compared to 163,663 MT in 9MFY25.

Source: None/Company/INE00EV01017/9e37da9d-a93c-43bc-97ea-1dbbf346b357.pdf