The company is setting up a plant in Chennai to serve local and overseas customers and is increasing capacity in Thailand by 50%.
June 29, 2021
Rajratan Global Wire Limited, one of the leading three bead wire and steel wire manufacturers for automotive tyres in India, is investing INR 250 crore for capacity expansion in the next three years.
The company has two manufacturing facilities, one each at Pithampur (Madhya Pradesh) and at Ratchaburi in Thailand. It is setting up a new plant in Chennai and expanding the capacity of the plant in Thailand.
As reported in a leading daily — the company will be acquiring land for its third plant in Chennai with a capacity of 60,000 tonnes, where it aims to invest about INR 250 crore. Mr. Sunil Chordia, CMD, Rajratan Global Wire Limited stated that the investment will be made from internal accruals.
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The company produces about 60,000 tonnes at the Pithampur plant and 40,000 tonnes in Thailand, where it is expanding the capacity to 60,000 tonnes to beef up the international supplies.
Chennai is a major automotive hub and has leading tyre makers like MRF and Apollo Tyres. The new plant there will help in saving logistics costs. The company has to import from its Thailand plant to serve Indian customers and since Chennai has ports it will open the opportunity for further exports.
Since two decades, the Indore-based company has been manufacturing tyre bead wire and high carbon steel wire. It wants to remain a focused player and has no diversification plans.
Also Read: Triton Electric Vehicle to Set up INR 2100 Crore Manufacturing Facility in India.
In India the company competes with Tata Steel (wire division) and Aarti Steels. Rajratan is the second-largest bead wire manufacturer in Asia (excluding China) and claims to be the largest manufacturer in India. The company which claims to have 20% market share in Thailand has widened its customer base in the USA, Europe and Sri Lanka.
The leading wire manufacturer reported the third consecutive quarter of highest-ever revenue, EBITDA and net profit. It reported revenue growth of about 13% year on year in FY21 at INR 548 crore and its net profit margin jumped by 60% to INR 53 crore.
