About DEE DEVELOPMENT ENGINEERS Limited

DEE DEVELOPMENT ENGINEERS LIMITED is an engineering company providing specialized process piping solutions for industries such as oil and gas, power (including nuclear), chemicals and other process industries through engineering, procurement and manufacturing. They have manufacturing experience of over three and a half decades and have been able to leverage their brand, strategically located manufacturing facilities and engineering capabilities to successfully expand their business. As part of their specialized process piping solutions, they also manufacture and supply piping products such as high-pressure piping systems, piping spools, high frequency induction pipe bends, LSAW pipes, industrial pipe fittings, pressure vessels, industrial stacks, modular skids and accessories including, boiler superheater coils, de-super heaters and other customized manufactured components. 

DEE is an ISO certified company and is also a certified manufacturer of Pipe Spools, Pipe Supports and Pipe Fittings under the purview of Pressure Equipment Directive (PED) norms, ASME Code Stamp Piping, Indian Boiler Regulations and the Canadian Welding Bureau. They also manufacture industrial pipe fittings which are registered under the Canadian Registration Number. DEE's manufacturing facilities located at Palwal in Haryana, Anjar in Gujarat, Barmer in Rajasthan and Bangkok in Thailand; namely, Palwal Facility I, Palwal Facility II, Palwal Facility III, Anjar Facility I, Barmer Facility and Bangkok Facility. The Company has experience of more than 35 years in this field with the help of their hardworking team force of over 1,073 Employees. 

DEE provide services for Multiple Industries And Technologies, such as :
a. SHOP FABRICATED PIPING
b. SKID & MODULAR PIPING
c. HIGH-FREQUENCY INDUCTION BENDING
d. FACILITY FOR HEAVY FABRICATION
e. PIPE FITTINGS
f. ENGINEERING SERVICES

Process Piping System

A piping system comprise of multitude of pipes as well as in-line components like industrial pipe fittings and flanges. In an industrial setting, often equipment like pumps, heat exchangers, and valves are considered as part of the broader piping system.

A process piping system is a specialized piping system that is exclusively used in an industrial plant for transporting input materials that goes into the actual production process. Process piping carries the raw materials or finished products to the desired location i.e., either into the reaction vessel or other containers or to the storage tanks or other equipment for further treatment or next stage reaction.

The process piping system typically consists of a network of interlinked piping system comprising different components such as pipes, tubes, pressure hoses, valves, separators, traps, flanges, fittings, gaskets, strainers, and control instruments among others which are required to regulate the movement of liquids and gases in various industries. Process piping systems are widely used across diverse industries such as chemical and pharmaceutical, oil & gas, semiconductor, paper, textiles etc. Depending on their application process piping systems may be simple and limited in scope, or extensive and complex.

This core usage separates process piping system from other types of piping systems found in an industrial plant. Hence, piping systems used for heating and cooling processes of liquids and gases, or power processing or pipework that leads to plumbing fixtures or waste-water systems, are considered as part of plumbing system, and not process piping systems.

Pipe Fabrication
Pipe Fabrication is the manufacture of metallic pipe and piping components, which include wrought or forged elbows, tee and reducer fittings, forged flanges, and the pipe itself, to provide a simple or complex piping systems as dictated by the design documents, to safely transport or process liquids, gases, and solids.

Types of Pipe Fabrication (according to material, fitting, and application)
There are different types of piping fabrication processes based on the material, size, and intended application of the pipes.

i. Welded Piping Fabrication
ii. Seamless Piping Fabrication
iii. Brazed Piping Fabrication
iv. Threaded Piping Fabrication
v. Grooved Piping Fabrication
vi. Compression Fitting Piping Fabrication
vii. Flanged Piping Fabrication
viii. Electrofusion Piping Fabrication

Chemicals & Petrochemical Plants
Stainless steel is considered as one of the best options for process piping plants in the chemical industry (liquids and gases) as the material is strong, durable and can resist corrosion well due to its oxide surface layer. Galvanized steel pipes are also strong and developed to resist corrosion.

Energy: Oil & Gas
In Oil & Gas industry, complex pipeline network is used in oil rigs to transport oil from wells to storage tanks as well as in downstream refineries wherein distillation to petroleum products happen.

Power Plants
Process piping plays a major role in the movement of gases, steam, and fluids important for power generation.

Opportunity for Piping Industry in India
- India’s National Green Hydrogen Mission is aimed at developing green hydrogen production capacity of at least 5 MMT (Million Metric Tonne) annually with an associated renewable energy capacity addition of about 125 GW in the country. Over Rs. 8 trillion in total investments is envisaged for this initiative. The government has approved an outlay of Rs 19,744 crore from FY 2023-24 to FY 202930 to make India a global hub for production, usage and export of green hydrogen and its derivatives.

- Companies have so far announced plans for 48 renewable hydrogen projects in India that could produce a combined 3.5mn t/yr. If these announced projects are completed by 2030, they could provide 70% of India’s target to establish 5mn t/yr of renewable hydrogen capacity by 2030. India’s oil & gas PSUs (public sector organizations), such as Hindustan Petroleum Corporation Ltd, are targeting to build a combined green hydrogen generation capacity of 38,000 tonnes per annum by the next financial year which would require setting up a combined electrolyzer capacity of 279 MW by 2024-25. Companies have also expressed interest in setting set up electrolyser manufacturing facilities and have announced plans for 19 factories so far.

- The government is planning consultation to create five large renewable hydrogen hubs that could be collectively worth USD 5 billion by 2030 through public-private partnerships. To reduce the transportation costs for making the project more financially viable, the production and consumption will have to be located closely.

- With such initiatives related to players announcing plans for alternate energy, this would lead to further capex and open up more opportunities for the process piping players.

DEE DEVELOPMENT ENGINEERS LIMITED STRENGTHS & STRATEGIES

1. Leading player in an industry with significant barriers to entry
2. Largest player in process piping solutions in India, in terms of installed capacity, providing specialized process piping solutions with strategically located state-of-the-art Manufacturing Facilities.
3. Long standing customer relationships with a strong order book.
4. Wide range of specialized product offerings and services making us a comprehensive solution provider for our diversified customers spread across geographies and sectors.
5. Strong focus on automation and process excellence with an experienced engineering team to drive operational efficiencies.
6. Experienced and dedicated promoter and professional management team with extensive domain knowledge.
7. Leverage our market leading position in the industry to capitalize on the revival of capital expenditure cycle in the sectors which we service which will drive the next phase of our growth.
8. Drive automation across our facilities and processes to bring in operational efficiencies.
9. Forging technology tie-ups with select global OEMs to derive consistent order flow and making us a preferred partner.
10. Increasing our focus on high margin products with additional contributions from modular skids and usage of high-grade materials which offers a better margin contribution to profitability.
11. Launch our pilot plant offerings in the near-future.
12. Focus on deleveraging and maintaining financial flexibility

DEE DEVELOPMENT ENGINEERS LIMITED RISK FACTORS & CONCERNS

1. The comapny derive majority of their revenue from their engineering services and supplies.
2. They track certain operational metrics with internal systems and tools.
3. The number of orders they have received in the past, their current order book and their growth rate may not be indicative of the number of orders they will receive in future.
4. Their Subsidiaries have incurred losses in the last three Fiscals and may do so in the future.
5. They are subject to contractual risks under their Power Purchase Agreements (“PPAs”) with their power purchaser, the Punjab State Power Corporation Limited (“PSPCL”), which is a government body.
6. Some of their new initiatives may not perform as anticipated or may be discontinued.
7. They have invested substantially in automation and upgraded engineering services.