Rama Steel Tubes Ltd. Plans Major Expansion
Rama Steel Tubes Limited, has received orders from Uttar Pradesh Power Corporation Limited (UPPCL) aggregating to the tune of ~Rs. 43.3 million. This order is mainly for the supply of no’s 2500 electrical poles amounting to ~580 MT. This order is in addition to the previous order received from UPPCL for no’s 7000 poles amounting to ~1624 MT. Earlier, the company had announced a capacity expansion to the tune of ~30,000 MTPA, at its plant located at Khopoli, Maharashtra. The expansion is expected to be completed by the end of Quarter 4of FY22, post which commercial production will commence. This additional capacity is mainly aimed at expanding our current repertoire of SKUs to include Special Grade Structural Steel and High thickness Tubes to cater to the Infra, Automobile and Solar Sectors. The total Capex for this expansion will be -Rs.100 million and will be funded through internal accruals of the company. As per bulk deal data available on BSE, Quant Mutual Fund picked up 100000 shares on 30th December 2021, and Mauritius based Saints Capital Funds picked up 120000 shares on 31st December 2021. Richi Bansal, Executive Director, Rama Steel Tubes Limited, said, “This additional capacity of ~30,000 MTPA will add significantly to our 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.” RSTL has a subsidiary in UAE and a step-down subsidiary in Nigeria which has strengthened the company’s presence in global markets, RSTL has 4 state-of-art manufacturing capabilities located at Sahibabad (U.P.), Khopoli (Maharashtra) and Anantpur (Andhra Pradesh) and has got strong distributor network spread across India.
Tags : ALLIED funds Solar Infra Expansion Structural Steel Rama Steel Tubes UPPCL Automobile Global Markets