DEE Development Engineers has disclosed that its material subsidiary, DEE Piping Systems (Thailand) Co., Ltd., has secured a Letter of Intent (LOI) for Heat Recovery Steam Generator (HRSG) piping supply from an international customer. The company made this disclosure under Regulation 30 of the SEBI Listing Regulations through a formal communication to stock exchanges.

Contract Overview

The secured order represents a significant milestone for the company's international operations:

Project Details

The contract involves the supply and fabrication of piping materials for what the company has identified as the "Taiwan Project." Due to commercial considerations, DEE Development Engineers has not disclosed the name of the customer awarding the contract. The project scope encompasses prefabrication and supply of piping and supports for HRSG applications.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI Listing Regulations and SEBI Master Circular dated November 11, 2024. Company Secretary and Compliance Officer Ranjan Kumar Sarangi signed the regulatory filing, confirming that the contract does not involve any related party transactions and that promoter groups have no interest in the entity awarding the order.

Strategic Significance

This international contract strengthens DEE Development Engineers' position in the specialized HRSG piping segment through its Thailand-based subsidiary. The multi-year timeline extending to May 2027 provides sustained revenue visibility for the subsidiary's operations in the industrial infrastructure sector.

DEE Development Engineers has secured a ₹58 crore contract for manufacturing and supply of alloy steel seamless pipes, marking the first commercial engagement for the company's seamless pipe division. The contract will be executed at the company's upcoming seamless forged pipe manufacturing facility in Anjar, Gujarat, which is nearing commissioning.

Contract Details and Customer Profile

The mandate has been awarded by a joint venture between an Indian and foreign conglomerate operating in the power sector. While the customer's name remains confidential for commercial reasons, this contract represents a significant milestone in DEE's backward integration journey and strategic expansion.

Strategic Manufacturing Expansion

The Anjar facility has been purpose-built for manufacturing seamless forged pipes catering to high-temperature and high-pressure applications, particularly in supercritical and ultra-supercritical power plants. Once commissioned, the plant will enable DEE to offer a complete, end-to-end piping solution to energy infrastructure customers, strengthening supply reliability and reducing dependence on imports for specialized alloy grades.

The seamless pipe capability complements DEE's existing portfolio of process piping systems, engineered components, and fabrication solutions, enabling a more integrated offering to customers across the power and process industries.

Management Commentary and Market Position

Commenting on the development, K. L. Bansal, Chairman and Managing Director, stated that the seamless pipe facility at Anjar has been developed with a clear strategic objective to deepen backward integration and enhance the company's ability to serve high-specification, critical application requirements in the energy sector. He emphasized that securing the first contract even as the facility approaches commissioning reflects market confidence in DEE's technical capabilities and track record as a reliable manufacturing partner.

Recent Business Momentum

This seamless pipe contract follows a series of significant wins during the current quarter, including a previously announced Letter of Intent exceeding USD 40 million for international HRSG piping supply across 16 units from a leading U.S.-headquartered OEM, as well as domestic and Thailand subsidiary orders aggregating to over ₹170 crore across fabrication, HRSG piping, and fittings.

The cumulative momentum across these mandates reflects sustained traction in both domestic and export markets and reinforces DEE Development Engineers' positioning as an integrated manufacturing partner for large-scale energy infrastructure projects.