Mumbai: The US-Iran truce is turning out to be timely for Indian construction firms operating in the region, as rebuilding in the aftermath of the crisis is estimated to cost as much as $50 billion. Companies with a presence in the Middle East, such as Man Industries (India), are set to capitalise on this. The Indian carbon steel pipe producer recently acquired Saudi Arabia-based National Pipe Company for $102 million.
“One outcome of the geopolitical environment is that countries are increasingly prioritising energy security and self-sufficiency,” managing director Nikhil Mansukhani told ET . “We are already seeing significant demand emerging from Saudi Arabia, Abu Dhabi, Iraq, and neighbouring regions.”
“One outcome of the geopolitical environment is that countries are increasingly prioritising energy security and self-sufficiency,” managing director Nikhil Mansukhani told ET . “We are already seeing significant demand emerging from Saudi Arabia, Abu Dhabi, Iraq, and neighbouring regions.”
The buyout of National Pipe Company includes $83 million in cash and liquid assets and an order book of around $120 million for the current fiscal, making it a “highly attractive plug-and-play acquisition”, Mansukhani said. He anticipates investments in oil, gas and water infrastructure picking up in the West Asian region.
While the crisis has brought in additional infrastructure requirements for the West Asia region, these regions is already in the midst of a major capital expenditure.
In 2024, Goldman Sachs estimated that Saudi Arabia is likely to invest $1 trillion across six key sectors by 2030.