DEE Development Engineers eyes nuclear, data centres for growth

DEE Development Engineers is looking to shift towards specialised, higher-value piping applications such as nuclear power and data centres as it targets a more than twofold increase in revenue to over Rs 2,500 crore by 2030 from around Rs 1,200 crore in FY26.

Chairman and Managing Director KL Bansal told Fe that the company’s current order book of around Rs 2,500 crore provides visibility for the next phase of growth, with power accounting for about 60% and oil and gas 35%. Around half of the orders are from overseas markets.

“We have a very clear order visibility from the power sector, particularly from the domestic sector,” Bansal said, identifying thermal power, data centres and nuclear as key opportunities.

Nuclear piping is emerging as DEE’s biggest strategic bet. The company is in initial discussions with a global entity to form a joint venture for nuclear piping fabrication, with the partnership expected to be finalised by the end of the year. The venture is likely to require initial capital expenditure of more than Rs 100 crore.

The business, however, is expected to have a long gestation period as technology development, qualification and regulatory approvals will have to be completed before commercial production begins. “Nuclear runs very slowly,” Bansal said.

The opportunity comes as India seeks to expand its nuclear capacity to 100 GW by 2047 and increase domestic manufacturing of equipment for the sector. The proposed venture could help reduce the country’s dependence on imports for nuclear piping fabrication, Bansal said.

DEE is also building capabilities in specialised power equipment through its heavy-wall seamless pipe facility at Anjar in Gujarat, which has an annual capacity of 7,000 tonne.

Data centres are another emerging opportunity. The company has secured its first order for core piping from a private customer and is in discussions with other large original equipment manufacturers. Bansal expects the global data-centre buildout, particularly in the US, to support demand for piping used in power generation and cooling infrastructure.

The company is taking a measured approach to capex, with existing facilities estimated to support revenue of Rs 2,500-3,000 crore. It is also targeting 40-50% automation to address the shortage of skilled manpower in its highly customised business.

DEE’s Thailand facility, which currently generates Rs 130-140 crore in annual revenue, is expected to reach Rs 160-170 crore by FY27, without significant fresh investment.