Metal Stock Rathi Steel In Focus On Adoption of Direct Charging Method For Wire Rod Production

Rathi Steel and Power Limited has become the first Indian company to adopt the direct charging method to produce wire rods from stainless steel billets. This pioneering move leverages the company's integrated facility in Ghaziabad, which houses both a melting unit and a rolling mill in close proximity.

In an exchange filing, Rathi Steel stated, "We are proud to be the first Indian company to implement direct charging for stainless steel billets in wire rod production. This advancement capitalizes on our Ghaziabad facility's integrated setup, where the melting unit and rolling mill are adjacent." The direct charging process synchronizes steel casting to directly feed the material into the rolling process, eliminating the need for reheating steel billets in the furnace. This results in significant savings in fuel, yield, and material handling. While commonly used by carbon and mild steel manufacturers, this is a first for stainless steel wire rods in India.

Mr. Udit Rathi, Promoter of Rathi Steel and Power Ltd, commented on the development: "We are thrilled to announce our strategic shift to direct charging of stainless steel billets for wire rods. This marks another pioneering initiative for Rathi Steel, setting a new benchmark in the industry. Direct charging offers several advantages over conventional rolling, including savings on manpower, machine, and power costs associated with handling, charging, and reheating billets. Additionally, it reduces fuel consumption and scale loss significantly, leading to lower costs, better margins, and a smaller carbon footprint."

In the stock market, Rathi Steel shares have demonstrated remarkable performance. Over the past month, shares have risen from approximately Rs 48.87 to Rs 68.51 apiece, delivering nearly 40 percent returns to shareholders. Over the last six months, the stock has surged from Rs 16.47 to Rs 68.51 per share, marking a 32 percent rally. Year-to-date, Rathi Steel shares have climbed from Rs 31.19 to Rs 68.51, logging an impressive 120 percent rise in 2024.

Recently, Rathi Steel and Power caught the attention of Indian stock market investors when the company announced an order worth Rs 7.80 crore from Bansal Wire Industries Ltd. for the supply of stainless steel products. This order further solidifies Rathi Steel's position in the market and underscores its capability to meet high demand.

Established in 1971, Rathi Steel and Power Limited has a long-standing history of manufacturing and supplying steel and related products. The company specializes in stainless steel products such as wire rods and flats, which are widely used in infrastructure, engineering, and household applications. Rathi Steel operates a plant in Ghaziabad, Uttar Pradesh, with an installed capacity of 200,000 tons per annum. Additionally, the company runs a steel melting shop with an installed capacity of approximately 90,000 tons per annum, dedicated to manufacturing stainless steel billets.

The adoption of the direct charging method is expected to enhance Rathi Steel's production efficiency and product quality while reducing operational costs. This innovative approach reaffirms the company's commitment to sustainability and operational excellence, setting a new standard in the Indian steel industry.