Rama Steel Tubes Limited (RSTL) and JSW Steel have signed a strategic tie-up, for the hot rolled coils (HRC) procurement used in RSTL’s steel tubes and pipes manufacturing, JSW-produced HRCs distribution in the entire western region, as well as manufacturing of value-added products, the pre- galvanized pipes, in agreement with JSW Steel Coated Products Limited. 

Jul 18, 2023 

Rama Steel Tubes Limited (RSTL) has signed an important strategic tie-up with JSW Steel. The tie-up serves multiple purposes, including HRC procurement used in RSTL’s steel tubes and pipes manufacturing, distribution of JSW-produced HRCs in the entire western region, as well as manufacturing of value-added products, the pre- galvanized pipes, in agreement with JSW Steel Coated Products Limited. The tie-up has resulted in an 8% rise in RSTL’s stock, trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Rama Steel said, “The MoU will facilitate RSTL to procure 1,00,000 tons of HRC from JSW Steel on Pan-India basis to support its manufacturing of various steel tubes and pipes. The MoU will enable RSTL to have greater control on its procurement, supply chain while yielding competitive raw material cost.”

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The MoU also establishes RSTL as an official distributor of JSW Steel for distribution of HRC in the entire Western region, the firm added.