Industrial gas producer and supplier,
) Indian subsidiary, Praxair India Private Limited strengthened
its relations with JSW Steel by signing two long-term contracts
with the latter.
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The contract requires Praxair India to operate JSW Steel's
nitrogen plants located at the Kalameshwar and Tarapur cities of
Maharashtra. Nitrogen produced will be primarily used for the
production of cold rolled and galvanized steel.
JSW Steel Limited is a part of the O.P. Jindal Group and is the
largest private sector steel manufacturer in India, considering
its installed capacity. Praxair's association with JSW Steel is
about 15 years old.
Praxair India, on the other hand, commenced its operations in
1996 and since then has grown to become one of the well known
industrial gas suppliers in India. Key customers include
companies like JSW Steel, Tata Steel, Saint-Gobain Glass, Haldia
Petrochemicals, Hospet Steel and United Phosphorus Ltd.
The company is making constant efforts to expand its reach within
the nation and tap the ever increasing demand for gases. Plans
for the construction of a nitrogen plant for EPCOS India Private
Ltd are underway.
We find long-term growth prospects quite bright for Praxair, as a
series of plant start-ups and contract wins signify the growing
preferences among customers for Praxair's world class technology,
high quality products and gas supply services.
The current Zacks Consensus Estimate for Praxair for years 2013
and 2014 are pegged at $5.95 and $6.70, reflecting annual growth
of 6.8% and 12.7%, respectively.
Praxair has a market capitalization of roughly $35.4 billion and
bears a Zacks Rank #3 (Hold). Other stocks to watch out for in
the industry are
Eastman Chemical Co.
Akzo Nobel NV
), each with a Zacks Rank #2 (Buy).