India’s Rama Steel Tubes Limited (RSTL), a manufacturer of steel pipes, tubes and GI pipes, has inked a strategic memorandum of understanding (MoU) with JSW Steel Limited, a company statement said on Tuesday, July 18.
Under the MoU, RSTL would procure hot rolled coil (HRC) from JSW Steel for the production of pipes and tubes, ensure distribution of HRC produced by JSW Steel’s mills in the western region and manufacture of value-added products like pre-galvanized pipes, in agreement with JSW Steel Coated Products Limited, a subsidiary of JSW Steel Limited.
“The MoU will facilitate RSTL to procure 100,000 mt of HRC from JSW Steel mills located across the country, to support its manufacturing of various steel tubes and pipes. The MoU will enable RSTL to have greater control on its procurement and supply chain, while yielding competitive raw material cost,” the company said.
Further, RSTL also said that it has entered into an agreement with JSW Steel Coated Products Limited to produce 200,000 mt per annum of high-value, pre-galvanized pipes, under the style and brand name of ‘JSW Kalinga’ for the western region.
“This collaboration positions us to make significant strides in capturing market share across various product ranges,” it said. RSTL will start the procurement and distribution of HRC and production of pre- galvanized pipes with immediate effect and this, the company stated, has a potential to contribute additional volumes of 1,00,000 mt on a per annum basis in the first year.