Rathi Steel announces new project integration

Rathi Steel & Power has informed exchanges that its board has approved the setting up of a forward integration project comprising stainless steel wires / bright bars / annealed and pickled products etc at a project cost of up to Rs 50 crore.

"The project will not only help to optimally utilise the existing capacity by facilitating self-consumption of part capacity, but will also enable the Company to cater to growing demand of these products / their allied products from Energy/ EV ecosystem / Engineering / Defence sectors amongst others," the company said in a filing.

The project will be set up on the surplus land available with the company at its existing facilities at Ghaziabad, Uttar Pradesh.

Earlier, the company secured an order to supply stainless steel products to Bansal Wire Industries. The total worth of the project is approximately Rs 7.8 crore.

"Company has received an order to supply stainless steel products to Bansal Wire Industries Limited, who are leaders in downstream applications of our products, of an approximate order value of Rs 7.8 Cr (including GST and considering value of base grade product category). The Company has received the said Order in normal course of business and the said transaction is not falling under related party transaction and is done on arm's length basis," the company said in a releas.

Recently, the company's steel melting unit in Ghaziabad was declared a Pioneer Unit under the "Industrial and Service Sector Investment Policy 2004" by the Government of Uttar Pradesh.