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RSTL enter into MoU for 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.
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 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.
Commeting on the tie up with JSW Steel, the management team of RSTL said, “This Memorandum of Understanding (MoU) brings forth a multitude 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.
We will be starting 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.”
Rama Steel Tubes is engaged in the business of manufacturing of Steel Pipes and related products.
The company's consolidated net profit increased 52.43% to Rs 11.28 crore on a 58.49% rise in sales to Rs 399.24 crore in Q4 FY23 over Q4 FY22.
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