Rama Steel Tubes inks a strategic tie up with JSW Steel

Rama Steel Tubes Ltd. (RSTL), a pioneer and a leading manufacturer of steel pipes, G.I. pipes and tubes in India has inked a strategic Memorandum of Understanding (MoU) JSW Steel Group.

RSTL enters into a strategic and notable Le up with India's largest steel manufacturer, JSW Steel Limited, for the following purposes :

- Procurement of Hot Rolled Coils (HRC) used in manufacturing of RSTL's steel tubes and pipes.

- Distribution of HRCs produced by JSW Steel in the entire western region.

- Manufacturing of value added product, the pre galvanized pipes, in agreement with JSW Steel Coated Products Ltd

- The MoU will facilitate RSTL to procure 1,00,000 ton of HRC from JSW Steel on Pan-India basis to support its manufacturing of various steel tubes and pipes. The MoU will enable RSTL to have greater control on its procurement, supply chain while yielding competitive raw material cost.

- The MoU also establishes RSTL as an official distributor of JSW Steel for distribution of HRC in the entire western region.

- Further, RSTL has entered into an agreement with JSW Steel Coated Products Limited to produce 200,000 Tons per Annum of high value, pre-galvanized pipes, under the style and brand name of "JSW Kalinga" for western region.

Commenting on the tie up with JSW Steel, the management team of RSTL said: "We are thrilled to announce the initiation of a new strategic tie up with India's largest steel manufacturers. This Memorandum of Understanding (MoU) brings forth a mul0tude of competitive advantages for us. Firstly, it provides us with access to top-tier raw materials of exceptional quality, all at competitive prices. Secondly, it empowers us to enhance our procurement process, ensuring prompt and efficient sourcing, thereby bolstering our supply chain management capabilities. Ultimately, this will lead to streamlined operations, improved overall efficiency and in turn better profitability.

Through this MoU, we will also harness the vast distribution network and brand strength of the JSW Steel Group. This collaboration positions us to make significant strides in capturing market share across various product ranges, including the lucrative high-value pre-galvanized segment in the forthcoming quarters.

We will be star0ng procurement and distribution of HRC and production of pre galvanized pipes with immediate effect. The production of pre galvanized pipes has a potential to contribute additional volumes of 1,00,000 ton on per annum basis in the first year.

At RSTL, we are fully committed to establishing a long-term and dependable supplier-customer tie ups, with a strong emphasis on building sustainable relationships. Our unwavering dedication to stakeholder satisfaction drives us to become a stakeholder-centric organization, acknowledging the importance of creating value and fostering trust among all parties involved."

Shares of JSW Steel Limited was last trading in BSE at Rs. 797.30 as compared to the previous close of Rs. 804.70. The total number of shares traded during the day was 119570 in over 2596 trades.

The stock hit an intraday high of Rs. 812.00 and intraday low of 796.20. The net turnover during the day was Rs. 95880210.00.

Source : Equity Bulls

Keywords

RamaSteelTubes StrategicMOU JSWSteel INE019A01038