Rama Steel Tubes freezes at 5 per cent upper circuit! Heres why?
One of India’s leading manufacturers of steel pipes and tubes, Rama Steel Tubes has announced that it is setting up a manufacturing facility of 20,000 MT per annum at its step-down subsidiary RST Industries Limited in Nigeria, West Africa. 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 Rs 20 crore and will be funded through a mix of internal accruals and partially through debt. The subsidiary 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 the company expects it to operate at full capacity by Q3FY23.
To quote Richi Bansal, Executive Director Rama Steel Tubes Limited from a filing with the exchange, "We have a very strong hold and presence in the region of western Africa from the past five 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.”
Rama Steel Tubes is a pioneer and leading manufacturer in the steel tube industry. The company has been continuously striving to improve its performance by increasing sales, the share of value-added products, innovating new products and aggressive cost optimization on a continual basis.
The company has a 20 per cent export rate, with a global presence in more than 16 countries. It has four state-of-art manufacturing capabilities with the world's latest technology including sophisticated testing equipment, situated at Sahibabad (Uttar Pradesh), Khopoli (Maharashtra) and Anantpur (Andhra Pradesh) along with a strong distributor network spread across the country.
Scrip of Rama Steel Tubes hit 5 per cent upper circuit, recording a fresh 52-week high of Rs 455.15 per share on BSE, during early market hours on Monday, January 10, 2022.
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