Dee Development Engineers Secures INR 173 Crore Contracts
Filing Summary
Dee Development Engineers Ltd has revised its earlier filing to include Annexure IV, detailing a domestic order worth INR 20 crores. The company, along with its subsidiary, has secured contracts totaling INR 173 crores. The contracts include INR 88 crores for job work by the company and US$ 9.5 million by its subsidiary, DEE Piping Systems (Thailand) Co., Ltd. The orders involve manufacturing and supplying critical piping solutions, with delivery timelines extending up to December 2028. These contracts are not related party transactions.
Dee Development Engineers Ltd has updated its previous filing to include Annexure IV, which was inadvertently omitted. The company has secured contracts totaling INR 173 crores. This includes INR 88 crores in job work contracts for the company itself and contracts worth US$ 9.5 million for its subsidiary, DEE Piping Systems (Thailand) Co., Ltd. The contracts involve manufacturing and supplying critical piping solutions for both domestic and international clients.
The financial terms of the contracts are detailed as follows: Dee Development Engineers Ltd has been awarded INR 88 crores in job work contracts, as per Annexures I, II, and IV. The subsidiary, DEE Piping Systems (Thailand) Co., Ltd., has secured contracts worth US$ 8 million for job work and US$ 1.5 million with material basis, as outlined in Annexure III. The aggregate contract value remains unchanged at INR 173 crores.
The operational scope includes the manufacturing and supply of critical piping solutions. Annexure I details a contract with Bharat Heavy Electrical Limited for the supply of headers and vessels. Annexure II involves a joint venture in the power sector for critical piping solutions. Annexure III covers HRSG piping and fittings for a US-based OEM, while Annexure IV involves a domestic conglomerate for piping solutions. These contracts are structured on a job work basis, with some including material supply.
The timeline for execution varies across contracts. The domestic contracts outlined in Annexures I, II, and IV are expected to be delivered within a year, with Annexure IV specifying a delivery period of 6 to 8 months. The international contracts in Annexure III have longer timelines, with HRSG piping scheduled for delivery by December 2028 and pipe fittings and flanges by December 2027.
The parties involved include Bharat Heavy Electrical Limited and a joint venture in the power sector for the domestic contracts. The international contracts are with a US-based OEM. The company has clarified that there is no interest from the promoter group in these entities, and the contracts do not fall under related party transactions.
The contracts align with the company’s focus on expanding its presence in the power sector, both domestically and internationally. The orders from a US-based OEM and a joint venture in the power sector highlight the company’s strategic efforts to enhance its market position in critical piping solutions.
Dee Development Engineers Ltd specializes in providing engineering solutions, particularly in the manufacturing and supply of piping systems. The company continues to focus on expanding its footprint in the power sector, leveraging its expertise to secure significant contracts both domestically and internationally.