Ram Ratna Wires jumps as Bhiwadi Plant gets approval under RIPS-2024

Ram Ratna Wires surged 6.16% after the company announced that its Bhiwadi plant has received approval under the Rajasthan Investment Promotion Scheme (RIPS-2024).

The approval entitles the company to a Turnover Linked Incentive of 1.32% (as a percentage of Eligible Fixed Capital Investment - EFCI), along with Electricity Duty Exemption for seven years and 25% stamp duty reimbursement.

The company stated that the Bhiwadi facility is expected to become a major growth driver for the company, strengthening Ram Ratna Wires manufacturing capabilities and enabling us to serve high-demand markets more efficiently. With an approved Eligible Fixed Capital Investment (EFCI) of Rs 186.77 crore under RIPS-2024, the plant will benefit from fiscal incentives that enhance operational efficiency and cost competitiveness, contributing to profitability and reinforcing our leadership position in the industry.

Mahendrakumar Kabra, managing director at Ram Ratna Wires, said "We are delighted to receive this approval under RIPS-2024 for our Bhiwadi plant. The incentives under the scheme will help us optimize costs and reinvest in technology and capacity expansion. The plant is well positioned to capitalize on the copper tube segment, which plays a crucial role in Indias rapidly growing air conditioning industry and offers significant growth opportunities. We are expecting considerable incremental revenue from the Bhiwadi plant starting this financial year, which will contribute meaningfully to profitability and strengthen the companys growth trajectory."

Ram Ratna Wires is a leading manufacturer of winding wires, mainly enamelled copper wires. The company offers unique product range of all gauges of winding wires including super fine wires. The product portfolio of the company includes enamelled copper wire and strips, enamelled aluminium wires and strips, submersible winding wires, fiber glass covered copper and aluminium strips and paper cover round wires.

The company's consolidated net profit climbed 17.7% to Rs 16.79 crore on 24.14% increase in revenue from operations to Rs 939.80 crore in Q2 FY25 over Q2 FY24.

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