February 20, 2024

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Niche supplier Rajratan Global Wire bullish on expansion; profit up by 60% in FY21, Auto News, ET Auto

Niche supplier Rajratan Global Wire bullish on expansion profit up by 60% in FY21New Delhi: Rajratan Global Wire Ltd, one particular of the main three bead wire and metal wire suppliers for automotive tyres in India, is investing INR 250 crore for ability enlargement in the up coming three years.

The corporation has two production amenities, one particular each and every at Pithampur (Madhya Pradesh, India) and at Ratchaburi in Thailand. It is environment up a new plant in Chennai and growing the ability of the plant in Thailand.

We will be attaining land for our third plant in Chennai with a ability of sixty,000 tonnes, exactly where we intention to devote about INR 250 crore.Sunil Chordia, founder and CMD, Rajratan GlobalWires

“We will be attaining land for our third plant in Chennai with a ability of sixty,000 tonnes, exactly where we intention to devote about INR 250 crore,” Sunil Chordia, founder and CMD, Rajratan GlobalWires, explained to ETAuto in an exclusive job interview. He extra that the financial commitment will be made from inside accruals. Niche supplier Rajratan Global Wire bullish on expansion profit up by 60% in FY21

The corporation creates about sixty,000 tonnes at the Pithampur plant and forty,000 tonnes in Thailand, exactly where it is growing the ability to sixty,000 tonnes to beef up the worldwide materials.

Niche supplier Rajratan Global Wire bullish on expansion profit up by 60% in FY21
The corporation creates about sixty,000 tonnes at the Pithampur plant and forty,000 tonnes in Thailand, exactly where it is growing the ability to sixty,000 tonnes to beef up the worldwide materials.

Rajratan Global, listed at the Indian bourses, has 35% community fairness and the relaxation 65% is held by the promoters.

Chennai is a significant automotive hub and has main tyre makers like MRF and Apollo Tyres. The new plant there will support in saving logistics charges. The corporation has to import from its Thailand plant to serve Indian shoppers and because Chennai has ports it will open up the opportunity for even more exports.

Considering the fact that two a long time, the Indore-based corporation has been production tyre bead wire and large carbon metal wire. It wants to continue to be a concentrated participant and has no diversification plans.

“We are much more of a base line-concentrated corporation, on the other hand, we are on the lookout for a companion who can extend our enterprise in the overseas marketplaces,” Chordia stated.

In India the corporation competes with Tata Steel (wire division) and Aarti Steels. Rajratan is the 2nd-premier bead wire maker in Asia (excluding China) and statements to be the premier maker in India. The corporation which statements to have twenty% sector share in Thailand has widened its client foundation in the Usa, Europe and Sri Lanka.

The main wire maker reported the third consecutive quarter of maximum-ever income, EBITDA and web gain. It reported income expansion of about thirteen% yr on yr in FY21 at INR 548 crore and its web gain margin jumped by sixty% to INR 53 crore.