Rama Steel Tubes arm inks pact for supply of speciality steel SKU's in Nigeria; Stock hits new high

10 Jan 2022 , 04:22 PM

Rama Steel Tubes Ltd-led RST Industries Ltd,. Nigeria has signed annual contract with Huihai Group Ltd, Hong Kong where RST lndustries Ltd will have an exclusive arrangement for supply of specialty steel SKUs of ~15,000 MT per annum in Nigeria.

"RSTIL takes pride in having a strong track record of being associated with many prestigious projects in Nigeria. Keeping up with our vision to cater the large scale infrastructure projects in the country, RSTIL has now sigrled a new annual contract with Huihai Group Ltd, Hong Kong for procuring 15,000 mtpa with an exclusive arrangement for Nigeria", said company in a regulatory filing on Monday.

This contract has exclusive arrangement with RSTL specifically for procurement and supply of 15,000 MT per annum of specialized steel SKUs in Nigeria and these supplies will further strengthen RSTIL's order book and credibility in the mark.

Commenting on the announcement, Richi Bansal, Executive Director, Rama SteelTubes Limited, said "Ihe Controct is on exclusive arrongement for only Nigerian region and the totol market size for these speciolized steel in Nigerio is ~50,000 MT per annum. Eventually, we ore expecting to grow our morket shore in the coming yedrs ond olso these SKUs are highly margin occretive, which definitely would be strengthening the blended morgin profile.

These controcts will help us in strengthening our position in the region by executing similar engogements in the coming yeors. We envisage this os a strotegic drive optimizing our market shore, product mix ond revenue drivers which will eventuolly strengthen and grow our consolidated performance.

Rama Steel Tubes ended at Rs455.15 per piece, hitting 52-week high during early trading hours on Monday.