Rama Steel Tubes Ltd announces backward integration expansion project

Rama Steel Tubes Limited (RSTL), one of the leading manufacturers of Steel Pipes & Tubes and G.I. Pipes in India, has initiated capacity expansion at its plant located at Khopoli, Maharashtra.

The company has initiated a strategic backward integration expansion to the tune of ~40,000 MTPA; at its plant located at Khopoli, Maharashtra.

The expansion is expected to be completed by the end of Q4 of FY25, post which commercial production will commence.

RSTL is setting up state of the art cold rolling mill and steel sheet galvanizing facility to cater the in house requirement of raw material.

The total Capex for this expansion will be ~Rs.300 MN and will be funded through internal accruals of the company.

Commenting on this crucial expansion milestone, Mr. Richi Bansal, Whole Time Director & Chief Executive Officer, Rama Steel Tubes Limited, said, "It gives me immense pleasure to announce that we are setting up Cold Rolling Mill and Galvanizing steel sheet facility to cater to the in house raw material requirements to meet the high demand of our specialized steel solutions having applications in country's growing infra & automobile sector. RSTL projects a significant rise in the demand of special grade, high thickness steel in the coming years. The additional capacity of ~40,000MTPA will allow us to cater to the increasing demand, thereby allowing us to scale our topline and bottomline in an efficient manner."

Source : Equity Bulls

Keywords

RamaSteelTubes RSTL BackwardIntegration ExpansionProject Khopoli ColdRollingMill GalvanizingFacility Capex