Corporate Feature     

Published: July 15, 2024
Updated: July 15, 2024

Rathi Steel And Power Ltd.

UP govt. declares Ghaziabad unit as ‘Pioneer Unit’ gets duty refund

Rathi Steel and Power Ltd. (BSE: 504903), a leader in stainless steel products like Wire Rods, Billets, Flats, has announced that the company’s steel melting unit at Ghaziabad has been declared as Pioneer Unit under “The Industrial and Service Sector Investment Policy 2004” of Govt. of Uttar Pradesh and pursuant to which it has received an amount of Rs. 4.72 Cr from Govt. of Uttar Pradesh as Refund against its claim of Electricity Duty Exemption.

The company also announced its plan ahead with Focus on stainless steel products, to enhance capacity as well as utilization levels while maintaining lean cost-structure. The fund raise and debt resolution has strengthened the balance sheet and positions the Company to leverage the headroom for growth in the market – Rathi commands a substantial market share in Northern India for long stainless steel. Company aims to leverage its broad product portfolio and cater to diverse range of sectors. Utilize retail network to push SS rebar and B2B for value-added products. Company to increase capacity utilization at existing plant. Infrastructure is strong enough for further capacity expansion at minimal capex cost, should the need arise based on anticipated demand.

The company’s capacity utilization being gradually ramped up. In May 2024, Rathi commenced a Cost Optimization Project to synchronize its steel casting and rolling process across all major equipment, to reduce fuel/scale loss. In April 2024, the Company completed the modernization of its Wire Rod Mill, and commenced commercial production from the same. This has improved product acceptability. In April 2024, Rathi re-initiated banking relationships via fund-raise with Kotak Mahindra, after becoming debtfree, with focus on prudent financial management.

Incorporated in 1971, Rathi Steel and Power Limited manufactures and supplies steel and steel related products. The Company specializes in stainless steel products like Wire Rods, Billets, Flats etc., which are primarily used in Infrastructure, Engineering, Household applications. Rathi operates a plant in Ghaziabad, UP, with an installed rolling capacity of 2,00,000 tons per annum. The Company also operates a steel melting shop with installed capacity of over 90,000 tons per annum to manufacture stainless steel billets.