Welspun Gujarat sees robust pipe demand in FY09

By Swati Pandey and Aniruddha Basu

MUMBAI (Reuters) - Steel pipe-maker Welspun Gujarat Stahl Rohren expects demand for pipes to stay robust this financial year as sky-rocketing oil prices lend a boost to exploration opportunities, a senior official said on Wednesday.

Global demand for steel pipes, used to supply oil and gas, will not be directly hit by the turmoil in financial markets worldwide, which saw the world's largest economy floundering, Director Akhil Jindal told Reuters in an interview.

"When crude prices rose, in pursuit of oil, people went deeper and deeper in the most difficult terrain. Now, you need to have the pipeline to transport oil and gas to capitalise your investments," Jindal said.

The firm also does not see the recent rupee depreciation impacting its revenues, at least in the current year, as it is naturally hedged against any currency risks "as our export-import orders are booked back-to-back," he said.