Saturday, July 13, 2024

Rama Steel Tubes Ltd. Strategically Positioned to Capitalize On Robust Domestic Steel Demand

Rama Steel Tubes Ltd. (RSTL) (BSE: 539309, NSE: RAMASTEEL) is a pioneer and leading manufacturer in the steel tubes & pipes. The company is strategically positioned to capitalize on robust domestic steel demand from key steel consuming sectors such as real estate, infrastructure and automobiles. The robust domestic demand along with softer material prices expect to positively boost the industry.

The structural steel pipes industry is an integral part of India’s infrastructure and construction sectors, providing the backbone for a wide range of projects, from bridges and buildings to oil and gas pipelines. With the government’s emphasis on infrastructure development and the country’s rapidly urbanizing population, factors such as increased investment in infrastructure projects, rising demand for residential and commercial spaces, and many more are expected to drive the demand for structural steel pipes. The industry’s adoption of advanced manufacturing techniques and the introduction of innovative products, such as high-strength and corrosion-resistant pipes, will become the primary reason for the growth in Value Added Products (VAP), hence increasing the mix of VAP in total volume sold. Furthermore, the adoption of better technology will lead to an array of opportunities, leading to an increase in the size of the Total Addressable Market (TAM).

Currently, leaders are concentrating on broadening the product portfolio. Strategic initiatives will assist them in catering to customers & needs as a one-stop solution, meeting the rising demand, reducing costs, and ensuring that the product is available across all regions of India.

Additional demand will be met by Hot Rolled (HR) Coil based steel pipes In India, the anticipated expansion in HR steel production capacity and the consequent increase in structural steel tube manufacturing, which relies on HR coils as its primary input, it is projected that the growing demand for structural steel tubes will be predominantly met by those produced from HR coils. Industry forecasts indicate that an additional 15 Mn T of HR steel production capacity is expected to become operational within the next 3-5 years (as of FY23, HR Coil/strip production in India was ~46 Mn T).

Rama Steel Tubes Limited (RSTL) is a pioneer and leading manufacturer in the steel Pipes & Tubes and G.I. Pipes in India established in 1974 by Sh. H.L. Bansal, Rama in one of the most trusted and established name in the Steel Tube and pipe market in India, and one which is rapidly gaining recognition globally. RSTL has been continuously striving to improve its performance by increasing sales, share of value-added products, innovating new products and aggressive cost optimization on a continual basis. RSTL products range includes MS ERW black pipes from 15mm to 200mm diameter pipes confirming to IS: 1239, IS:1161, IS:3589, IS:3601, & IS:4270 and G.I. Pipes from 15mm to 150mm NB in light, medium and heavy sizes. RSTL has 20% exports rate, with a global presence in more than 16 Countries. 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 the world’s latest technology, plant and machinery, which also includes sophisticated testing equipment. RSTL has 4 state-of-art manufacturing capabilities located at Sahibabad (U.P.), Khopoli (Maharashtra) and Anantpur (Andhra Pradesh). RSTL has acquired 51% stake in Ashoka Infra steel (Partnership firm). RSTL also have 25% stake in Peer Panchal Construction (JV) and has got strong distributor network spread across India.

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