Rama Steel Tubes (RSTL), India’s leading manufacturer of steel pipes, tubes, Hollow Sections, and G.I. pipes, announced the establishment of a 20,000 MT pa manufacturing facility at its step-down subsidiary RST Industries in Nigeria, West Africa.
The company has already begun the expansion process for establishing the proposed facility in Nigeria; the expansion is expected to be completed in two tranches and will be fully operational by August 2022, with full capacity expected by Q3 of FY23.
This additional capacity is primarily intended to broaden its current SKU repertoire to include Roofing Sheets. The total capital outlay for this expansion will be Rs 200 million, which will be funded through a combination of internal accruals and outside funding.
Richi Bansal, Executive Director of Rama SteelTubes, commented on the announcement, saying, “The Contract is an exclusive arrangement for only the Nigerian region, and the total market size for these specialized steel in Nigeria is 50,000 MT per annum.”
Finally, we expect to increase our market share in the coming years, and these SKUs are highly margin accretive, which will help to strengthen the blended margin profile. By executing similar engagements in the coming years, we will be able to strengthen our position in the region as a result of these contracts.
We see this as a strategic initiative to improve our market share, product mix, and revenue drivers, which will ultimately strengthen and grow our consolidated performance.”
