Rama Steel Tubes Ltd Unveils Backward Integration Expansion Project

Rama Steel Tubes Limited (RSTL), a leading manufacturer of Steel Pipes & Tubes and G.I. Pipes in India, has embarked on a significant capacity expansion project at its plant in Khopoli, Maharashtra.

The company is strategically pursuing a backward integration expansion, aiming to increase its capacity by approximately 40,000 MTPA at the Khopoli facility. The expansion initiative is slated to be completed by the end of the fourth quarter of the financial year 2024-25, following which commercial production will commence.

As part of the expansion, RSTL is establishing a state-of-the-art cold rolling mill and steel sheet galvanizing facility to meet its in-house raw material requirements. This move is in response to the growing demand for specialized steel solutions, particularly in the country's expanding infrastructure and automobile sectors.

The total capital expenditure (Capex) for this ambitious expansion is estimated to be around Rs. 300 MN, and RSTL plans to fund the project through internal accruals.

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

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