Rama Steel Tubes has commenced commercial production of second production line at their plant at Khopoli, Maharashtra, adding an additional of 36,000 MT. The total installed capacity of the Khopoli plant now stands at 72,000 MT. The manufacturing unit at Khopoli has been the first venture of Rama Steel outside of North India. The first production line at Khopoli started production in June 2015 with a capacity of 36,000 MT. The production achieved in the first nine months of operations ending FYZOLG was 22,000 MT resulting in over 80 percent utilization. The total capex for first production line was Rs 7 crore.
Second production line has an installed capacity of 36,000 MT with the total cost of Rs 5 crore. The total capex for both the production lines (including land cost) has been Rs 12 crore.
The Khopoli plant is very strategically located, servicing the key high growing markets of Maharashtra, South Gujarat, North Karnataka and Madhya Pradesh. These units offer an increased range of diverse and value added products (eg Pre-Galvanized Tubes) and enable the Company to bring down the logistics cost, positively impacting realizations and profitability.
The company proposes to further add a third line of production of additional 60,000 MT by Q1FY18, taking the total capacity to 1,32,000 MT.
Company Name | CMP |
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Tata Steel | 141.70 |
JSW Steel | 936.70 |
SAIL | 121.15 |
Jindal Stainless | 727.45 |
Jindal Saw | 301.95 |
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