Rama Steel Tubes signs MoU with JSW Steel

A strategic Memorandum of Understanding (MoU) has been signed between Rama Steel Tubes (RSTL), an Indian maker of steel pipes, GI pipes, and tubes, and JSW Steel Group. The MoU will facilitate the distribution of HRCs made by JSW Steel in the western region, the procurement of Hot Rolled Coils (HRC) used in the production of RSTL's steel tubes and pipes, and the production of pre-galvanized pipes, a value-added product made in accordance with JSW Steel Coated Products Ltd. 

"The MoU will make it possible for RSTL to purchase 1,000,000 tonnes of HRC on a pan-India basis from JSW Steel to assist its production of various steel tubes and pipes. The MoU will provide RSTL more control over its supply chain and procurement, while also producing competitive raw material costs, the company claimed in a regulatory filing. The MoU also designated RSTL as JSW Steel's official distributor for the western region of HRC distribution.

Additionally, RSTL stated that it has a contract with JSW Steel Coated Products Limited to produce 200,000 tonnes of high-quality, pre-galvanized pipes annually for the western region under the style and brand name "JSW Kalinga."

This Memorandum of Understanding (MoU) gives us many competitive advantages, according to the statement. First of all, it gives us access to first-rate raw materials of great quality at reasonable prices. The second benefit is that it gives us the ability to improve our procurement procedure, assuring timely and effective sourcing and strengthening our supply chain management capabilities. The management team of RSTL predicted that this would eventually result in operations being simplified, increased overall efficiency, and ultimately greater profitability.

The business added that it would make use of the JSW Steel Group's extensive distribution network and strong brand recognition. According to the statement, "This collaboration positions us to make significant progress in capturing market share across a variety of product ranges." With immediate effect, RSTL will begin acquiring and distributing HRC and producing pre-galvanized pipes. According to the company, this may potentially generate an extra 1.00.000 tonnes of volume per year in the first year. 

RSTL exports 20% of its products and has operations in more than 16 nations worldwide. It now has a 2.94 lakh MTPA total capacity. There are four cutting-edge manufacturing facilities there. Recently, RSTL purchased a 50% share in Hagar Mega Mart Private Limited and a 51% stake in the partnership venture Ashoka Infrasteel. Additionally, RSTL owns a 25% ownership in Peer Panchal Construction (JV) and has a wide-ranging, effective distribution network in India.