BMW Industries Limited (BSE: 542669) (herein referred to as "BMWIL"), engaged in the manufacturing of HRPO Coils, CR Coils, GP Coils, GC Sheets, MS and GI pipes, TMT rebars, etc., and processing the same for various marquee steel players in India, announced that the company has successfully inaugurated its Tube Mill at NH-6 unit, Kolkata.
BMWIL continues its heritage of being a trusted steel processing facility for prominent steel players in India, and in connection to this the company successfully inaugurated its Tube Mill Facility at NH-6, Kolkata on 15th February 2023. The facility was inaugurated by senior management of Tata Steel, Mr. Rajeev Singhal, Vice President Marketing & Sales, Flat Products which is a proud event for BMWIL.
BMWIL has signed a prestigious agreement with Tata Steel for the conversion of MS Pipes at this facility and the trial runs are scheduled to begin in March 2023. The contract will involve the conversion of 40,000 tons of MS Pipes which will ramp-up BMWIL's capacity at optimal utilization with a potential conversion revenue of Rs.15 crores over the contract duration of nine months till November 2023; with a renewal clause.
Commenting on the development, Mr. R. G. Bansal, Chairman & Executive Director of BMWIL said, "We are delighted to announce that BMWIL has successfully inaugurated its Tube Mill facility together with committed orders of MS pipe conversion orders from Tata Steel, enabling us to operate at optimum capacity utilization from the very beginning of the operations. The aforementioned accomplishment is possible due to our consistent hard work, provision of high-quality services, and established relationship with our client.
This facility will have a potential to generate an additional revenue of Rs. 15 crores throughout the contracted period of nine months with good profitability and we are sure for the subsequent renewal of the same. This is consistent with our goal of improving revenue mix of conversion income, which will increase the company's overall profitability. We are cautiously trying to improve our capabilities while considering all stakeholders and environmental safety.
We are at a journey of strengthening our core, which will lead us toward brighter future tomorrow."
Shares of BMW Industries Ltd was last trading in BSE at Rs. 32.10 as compared to the previous close of Rs. 32.45. The total number of shares traded during the day was 11860 in over 133 trades.
The stock hit an intraday high of Rs. 34.85 and intraday low of 31.25. The net turnover during the day was Rs. 383244.00.