Rama Steel Tubes Forays Into Defence, Board Approves Incorporation of Wholly Owned Subsidiary Rama Defence

Rama Steel Tubes Ltd. (RSTL) (BSE: 539309, NSE: RAMASTEEL) is a pioneer and leading manufacturer in steel tubes & pipes and G.I. pipes in India with nearly five decades of experience, has announced that its board has approved the Incorporation of a defence related wholly owned subsidiary with the proposed name "Rama Defence Pvt. Ltd." The proposed wholly owned subsidiary to be incorporated in India shall carry out business in the field of Defence Sector.

Earlier, the company had announced that is strategically well-positioned to leverage strong domestic steel demand by increasing a Manufacturing Capacity ~ AT ANANTPUR, ANDHRA PRADESH through its Wholly Owned Subsidiary "Lepakshi Tubes Private Limited" The company is strategically well- positioned to leverage strong domestic steel demand from key steel consuming sectors such as real estate, infrastructure and automobiles. The increased domestic demand along with softer material prices expect to positively boost the industry.

The structural steel pipes industry is an integral part of India's infrastructure and construction sectors, providing the backbone for a wide range of projects, from bridges and buildings to oil and gas pipelines. With the government's emphasis on infrastructure development and the country's rapidly urbanizing population, factors such as increased investment in infrastructure projects, rising demand for residential and commercial spaces, and many more are expected to drive the demand for structural steel pipes. The industry's adoption of advanced manufacturing techniques and the introduction of innovative products, such as high-strength and corrosion-resistant pipes, will become the primary reason for the growth in Value Added Products (VAP), hence increasing the mix of VAP in total volume sold.

Furthermore, the adoption of better technology will lead to an array of opportunities, leading to an increase in the size of the Total Addressable Market (TAM). Currently, leaders are concentrating on broadening the product portfolio. Strategic initiatives will assist them in catering to customers' needs as a one-stop solution, meeting the rising demand, reducing costs, and ensuring that the product is available across all regions of India.

Rama Steel Tubes Limited (RSTL) is a pioneer and leading manufacturer of steel Pipes & Tubes and G.I. Pipes in India established in 1974 by Sh. H.L. Bansal, Rama is one of the most trusted and established names in the Steel Tube and pipe market in India and one which is rapidly gaining recognition globally. RSTL has been continuously striving to improve its performance by increasing sales, share of value-added products, innovating new products and aggressive cost optimization on a continual basis. RSTL products range includes MS ERW black pipes from 15mm to 200mm diameter pipes confirming to IS: 1239, IS:1161, IS:3589, IS:3601, & IS:4270 and G.I. Pipes from 15mm to 150mm NB in light, medium and heavy sizes. RSTL has a 20% export rate, with a global presence in more than 16 Countries. RSTL has a subsidiary in UAE and a step-down subsidiary in Nigeria which has strengthened the company's presence in global markets. RSTL has the world's latest technology, plant and machinery, which also includes sophisticated testing equipment. RSTL has 4 state-of-art manufacturing capabilities located at Sahibabad (U.P.), Khopoli (Maharashtra) and Anantpur (Andhra Pradesh). RSTL has acquired 51% stake in Ashoka Infra Steel (Partnership firm). RSTL also have a 25% stake in Peer Panchal Construction (JV) and has got strong distributor network spread across India.