Rama Steel Tubes inks MoU with JSW Steel for procurement and distribution

Rama Steel Tubes Ltd. (RSTL), a prominent manufacturer of steel pipes and tubes in India, has signed a strategic Memorandum of Understanding (MoU) with India’s largest steel manufacturer, JSW Steel Group.

The agreement encompasses various key aspects such as procurement of hot rolled coils (HRC), distribution of hot rolled coils, and production of value-added products like pre-galvanized pipes.

As per the MoU, Rama Steel Tubes will procure 1,00,000 tons of hot rolled coils from JSW Steel, which will be used in the manufacture of Rama Steel Tubes’ steel tubes and pipes. This arrangement allows Rama Steel Tubes to have greater control over its procurement and supply chain, ensuring competitive raw material costs.

The MoU also designates Rama Steel Tubes as an official distributor of JSW Steel, facilitating the distribution of HRC in the entire western region of India. In addition to these collaborations, Rama Steel Tubes will work with JSW Steel Coated Products Limited to produce 200,000 tons per annum of high-value pre-galvanized pipes. These pipes will be marketed under the brand name “JSW Kalinga” in the western region.

Rama Steel Tubes’ management expressed their excitement over the partnership, stating, “This Memorandum of Understanding (MoU) brings forth a multitude of competitive advantages for us…Ultimately, this will lead to streamlined operations, improved overall efficiency and in turn better profitability…Through this MoU, we will also harness the vast distribution network and brand strength of the JSW Steel Group…We will be starting procurement and distribution of HRC and production of pre-galvanized pipes with immediate effect.”

Rama Steel Tubes, a pioneer in the steel tube and pipes industry since 1974, sees this agreement as a significant stride in capturing market share across various product ranges, including the lucrative high-value pre-galvanized segment in the forthcoming quarters. The production of pre-galvanized pipes has the potential to contribute an additional volume of 1,00,000 tons on an annual basis in the first year.