RST International Trading FZE (UAE), a wholly owned subsidiary of Rama Steel Tubes Limited, will acquire 78.38%, while RSTL will acquire 21.62% of Automech Group. The transaction is expected to close by 6 months, subject to customary approvals.
Dec 11, 2025
Rama Steel Tubes Limited (RSTL), a manufacturer of steel pipes and tubes, has announced its plan to acquire Automech Group, a UAE-based provider of high-precision manufacturing services, machines, and components for a total consideration of AED 296 million (Approx Rs. 728 Crores).
This strategic transaction marks a defining milestone in the company’s journey to diversify into high-value engineering services and strengthen its presence across the GCC and MENA regions.
Post-acquisition, RSTL expects consolidated total revenue to rise by over 113% from INR 1,065 crore in FY25 to approximately over INR 2,200 crores by FY 27.
Automech’s standalone revenues are INR 611 crores and profit stood at INR 101 crores in FY25
In addition, this acquisition will give a significant boost to Rama Steel standalone financials by shifting part of the production chain from the Automech’s UAE operation to Rama Steel IS domestic Indian manufacturing operation.
Further, Rama Steel’s standalone financials will be boosted by proposed dividend and royalty payments from Automech to the parent, Rama Steel, once the operations are integrated.
Rama Steel also intends to institute world class accounting and governance practices at Automech, to ensure complete transparency and compliance with applicable laws. This acquisition will also act as a significant launch pad for a global push by Rama, into the high margin, value added precision engineered products segment.
This will mark the upscaling of Rama from a pipes company into a high-end engineering company.
The Share Purchase Agreements have been executed among Mr. Jagjit Gouri , RST International Trading FZE , and Rama Steel Tubes Limited.
RST International Trading FZE (UAE), a wholly owned subsidiary of RSTL, will acquire 78.38%, while RSTL will acquire 21.62% of Automech Group. The transaction is expected to close by 6 months, subject to customary approvals.
The acquisition will combine RSTL’s strong manufacturing base with Automech’s advanced capabilities in precision machining, heavy fabrication, marine services, and dewatering solutions. With Automech’s API, ASME, and ISO-accredited facilities and ADNOC-approved vendor status, RSTL gains access to marquee clients and high-margin segments in infrastructure, energy, and industrial sectors.
