Jindal saw Limited has disclosed to stock exchanges that its American Petroleum Institute (API) license for seamless pipes has been suspended following the identification of non-conformances during a recent API audit. The suspension letter issued by API restricts the company from affixing API monogram on its API seamless pipes.

License Suspension Details

The regulatory action stems from certain non-conformances observed during the API audit process. The company has provided detailed information about the suspension through a structured disclosure to comply with SEBI listing regulations.

Company's Response and Impact Assessment

Jindal Saw Limited has indicated that it is actively responding to API and implementing appropriate corrective measures to address the identified non-conformances. The company has committed to updating stock exchanges on any material developments as they occur.

Regarding the business impact, the company has stated that the seamless pipe manufacturing capacity is fungible in nature. To mitigate the immediate effects of the suspension, Jindal Saw has reallocated this manufacturing capacity to produce other products.

Operational Adjustments

The company's management has emphasized that the impact of the suspension may not be material due to several factors:

• The seamless pipe manufacturing capacity can be utilized for other product lines
• Capacity has been allocated to alternative products during the suspension period
• The fungible nature of manufacturing operations provides operational flexibility

Regulatory Compliance and Next Steps

The disclosure was made pursuant to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrating the company's commitment to transparency with stakeholders. Jindal Saw has assured that it will take suitable steps to comply with API requirements and work toward resolving the non-conformances that led to the suspension.

The company will continue to engage with API authorities to address the identified issues and work toward the revocation of the suspension. Updates on material developments related to this matter will be communicated to stock exchanges as they become available.

Jindal Saw Limited is positioning itself for significant growth through strategic government policy expectations and international expansion initiatives. The company anticipates continued government support for the Jal Jeevan Mission in the upcoming Union Budget, which it considers essential for sustaining its growth momentum in the domestic market.

Strategic Dependence on Jal Jeevan Mission

The company's outlook remains closely tied to government infrastructure spending, particularly through the Jal Jeevan Mission program. Jindal Saw views ongoing government backing for this initiative as crucial for its future growth prospects, highlighting the importance of policy continuity in driving business expansion.

GCC Region Expansion Plans

Jindal Saw has outlined comprehensive expansion plans across the Gulf Cooperation Council region, focusing on establishing manufacturing capabilities in key markets. The company's international growth strategy encompasses multiple facility types and partnership structures.

Timeline and Financial Projections

The company has established a clear timeline for its GCC expansion, with all new projects scheduled to begin operations by February 2028. The financial effects from these international ventures are expected to start reflecting in the company's performance from FY 2029, providing a medium-term growth catalyst.

Strategic Market Positioning

Through these initiatives, Jindal Saw is diversifying its revenue streams between domestic government-backed projects and international manufacturing operations. The combination of expected policy support domestically and operational expansion internationally represents a dual-pronged approach to business growth and market presence enhancement.