Rama Steel Tubes Ltd (RSTL) has initiated a massive 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 4 of FY22, post which commercial production will commence. This additional capacity is mainly aimed at expanding the 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 mn and will be funded through internal accruals of the company.
Commenting on this crucial expansion milestone, Mr. Richi Bonsol, Executive Director, Rama Steel Tubes Limited, said, "It gives me immense pleasure to announce that we are expanding and upgrading our current capacities to meet the high demand of the country's growing infra & automobile sector. RSTL projects a significant rise in the demand of special grade, high thickness steel in the coming years. This additional capacity of ~30,000 MTPA will add significantly to the top line. We are also happy to state that we have a strongly growing order book for these new SKUs ond expect it to grow further."
Shares of Rama Steel Tubes Limited was last trading in BSE at Rs. 260.35 as compared to the previous close of Rs. 237.35. The total number of shares traded during the day was 13915 in over 614 trades.
The stock hit an intraday high of Rs. 261.05 and intraday low of 232.25. The net turnover during the day was Rs. 3568428.00.