January 29, 2023

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Niche supplier Rajratan Global Wire bullish on expansion; profit up by 60{ed0b873b90f1b87a4f3b347f1646a477c6eee9bccb9dcbe5ac9cb67a3d16495a} in FY21, Auto News, ET Auto

Niche supplier Rajratan Global Wire bullish on expansion profit up by 60{ed0b873b90f1b87a4f3b347f1646a477c6eee9bccb9dcbe5ac9cb67a3d16495a} in FY21New Delhi: Rajratan Global Wire Ltd, 1 of the major a few bead wire and steel wire producers for automotive tyres in India, is investing INR 250 crore for potential enlargement in the next a few a long time.

The enterprise has two manufacturing facilities, 1 each at Pithampur (Madhya Pradesh, India) and at Ratchaburi in Thailand. It is environment up a new plant in Chennai and increasing the potential of the plant in Thailand.

We will be getting land for our 3rd plant in Chennai with a potential of 60,000 tonnes, exactly where we purpose to spend about INR 250 crore.Sunil Chordia, founder and CMD, Rajratan GlobalWires

“We will be getting land for our 3rd plant in Chennai with a potential of 60,000 tonnes, exactly where we purpose to spend about INR 250 crore,” Sunil Chordia, founder and CMD, Rajratan GlobalWires, informed ETAuto in an exclusive interview. He extra that the expense will be made from internal accruals. Niche supplier Rajratan Global Wire bullish on expansion profit up by 60{ed0b873b90f1b87a4f3b347f1646a477c6eee9bccb9dcbe5ac9cb67a3d16495a} in FY21

The enterprise generates about 60,000 tonnes at the Pithampur plant and forty,000 tonnes in Thailand, exactly where it is increasing the potential to 60,000 tonnes to beef up the intercontinental supplies.

Niche supplier Rajratan Global Wire bullish on expansion profit up by 60{ed0b873b90f1b87a4f3b347f1646a477c6eee9bccb9dcbe5ac9cb67a3d16495a} in FY21
The enterprise generates about 60,000 tonnes at the Pithampur plant and forty,000 tonnes in Thailand, exactly where it is increasing the potential to 60,000 tonnes to beef up the intercontinental supplies.

Rajratan Global, detailed at the Indian bourses, has 35{ed0b873b90f1b87a4f3b347f1646a477c6eee9bccb9dcbe5ac9cb67a3d16495a} public fairness and the relaxation 65{ed0b873b90f1b87a4f3b347f1646a477c6eee9bccb9dcbe5ac9cb67a3d16495a} is held by the promoters.

Chennai is a major automotive hub and has major tyre makers like MRF and Apollo Tyres. The new plant there will assist in conserving logistics expenditures. The enterprise has to import from its Thailand plant to provide Indian buyers and due to the fact Chennai has ports it will open the chance for even further exports.

Given that two a long time, the Indore-primarily based enterprise has been manufacturing tyre bead wire and significant carbon steel wire. It would like to continue being a concentrated player and has no diversification strategies.

“We are additional of a base line-concentrated enterprise, even so, we are hunting for a lover who can grow our business in the overseas markets,” Chordia stated.

In India the enterprise competes with Tata Metal (wire division) and Aarti Steels. Rajratan is the next-major bead wire manufacturer in Asia (excluding China) and promises to be the major manufacturer in India. The enterprise which promises to have twenty{ed0b873b90f1b87a4f3b347f1646a477c6eee9bccb9dcbe5ac9cb67a3d16495a} industry share in Thailand has widened its buyer base in the United states of america, Europe and Sri Lanka.

The major wire manufacturer reported the 3rd consecutive quarter of highest-ever revenue, EBITDA and internet income. It reported revenue progress of about thirteen{ed0b873b90f1b87a4f3b347f1646a477c6eee9bccb9dcbe5ac9cb67a3d16495a} yr on yr in FY21 at INR 548 crore and its internet income margin jumped by 60{ed0b873b90f1b87a4f3b347f1646a477c6eee9bccb9dcbe5ac9cb67a3d16495a} to INR 53 crore.