Rama Steel starts production at Khopoli plant

With this, the company is doubling its capacity to 72,000 tonnes of mild steel tubes output

Steel pipes and tubes manufacturer Rama Steel Tubes Ltd (RSTL) has commenced commercial production at its Khopoli plant, near Mumbai, doubling its capacity to 72,000 tonnes of mild steel tubes output.

The Khopoli plant which is the company’s latest addition to its two existing plants at Sahibabad near Delhi enjoys the economic advantage of low transportation cost benefiting exports as well as distribution in the western and southern pipe markets in India.

"Adding the plant at Khopoli was a decision based on anticipated benefits for the growth and profitability of the company. Our exports already constitute 30-35% of our turnover and markets around Mumbai and South India have tremendous demand for hollow sections and tubes," said Richi Bansal, Executive Director, RSTL, listed on Bombay Stock Exchange and National Stock Exchange with a market cap of Rs 130 crore.

RSTL reported gross sales of Rs 49 crore for the first quarter ended June 2015. The company has set up its overseas arm, RST International Trading FZE, in Dubai with the objective of exploring international business in steel products, concentrating its business in Africa, mainly in Ethiopia, Sudan, Somalia Ghana and UAE.