Rama Steel Tubes arm to set up Roofing Sheets facility in Nigeria

Rama Steel Tubes Limited (RSTL), one of the leading manufacturers of Steel Pipes & Tubes and G.I. Pipes in India, is setting up a manufacturing facility of ~20,000 MT pa at its step-down subsidiary RST Industries Limited in Nigeria, West Africa to produce Roofing Sheets.

RSTIL has already commenced the expansion exercise for setting up the proposed facility in Nigeria, the expansion is expected to be completed in two tranches and will be fully operational by August 2022 and expects to operate at full capacity by Q3 of FY23. This additional capacity is mainly aimed at expanding our current repertoire of SKUs to include Roofing Sheets. The total capital outlay for this expansion will be INR ~200 MN and will be funded through a mix of internal accruals and partially through debt.

Commenting on the announcement, Mr. Richi Bansal, Executive Director of Rama Steel Tubes Limited said, "It gives us immense pleasure to announce that we are expanding and setting up a facility to meet the high demand of the Roofing sheets in Nigeria. We always had the vision to become one of the leoding company in building material products and solutions and this milestone is definitely one among the few business strategic pipeline of plans. We have a very strong hold and presence in the region of Western Africa from the past 5 years. This capacity of 20,000 MTPA will add significantly to our subsidiary's top line. We are also happy to state that we have a strongly growing order book for these new SKUs and expect it to grow further. This also takes us one step ahead in our competition and further elevates our performance benchmark to the next level.

We humbly would like to express our gratitude to all our stakeholders for always encompassing confidence in RSTL."

Shares of Rama Steel Tubes Limited was last trading in BSE at Rs. 433.50 as compared to the previous close of Rs. 412.90. The total number of shares traded during the day was 141096 in over 2353 trades.

The stock hit an intraday high of Rs. 433.50 and intraday low of 415.35. The net turnover during the day was Rs. 60892356.00.

Source : Equity Bulls

Keywords

RamaSteelTubes INE230R01027 ManufacturingFacility RSTIndustries Nigeria RoofingSheets BuildingMaterial