Rajratan Global Wire, a leading manufacturer of tire beads, said its upcoming new manufacturing facility based in the port of Chennai will serve the US and European markets in addition to meeting domestic demand. Currently, the company has two manufacturing plants, one in Pithampur, Madhya Pradesh and one in Ratchaburi, Thailand, with a combined capacity of around one lakh ton per year.
Besides expanding the production of the Thai factory, Rajratan Global Wire is also in the process of setting up a factory with a capacity of 60,000 tons per year in Chennai. The company exports products to customers in India from Thailand, Italy, United States, Czech Republic, South Korea, Malaysia, Indonesia, Philippines, Vietnam, Sri Lanka, United Arab Emirates and Bangladesh.
Its consolidated net profit jumped 140.77 percent to Rs 32.60 crore in the September 2021 quarter this fiscal year on revenue of Rs 241.17 crore on Rs 139.02 crore in Q2FY21.
Besides tire bead wire, Rajratan Global is also engaged in the production of high carbon steel wire. “We have already announced the establishment of a new factory of 60,000 tonnes per year of tire bead, in which we are investing Rs 300 crore in the first phase.
“As this will be a port based location, we also plan to export from this facility to Europe and the United States,” Sunil Chordia, President and CEO of Rajratan Global Wire, told PTI. . He added that the plant is expected to be completed within a year from the day it obtains the required land from the state government with which it signed an initial pact in July.
Chordia said that as part of its overall growth plans, the company plans to double capacity over the next two years to around two lakh tonnes, including 1.85 lakh tonnes for the tire bead. Currently, the Pithampur plant has a production capacity of around 60,000 tonnes per year, while the Thai plant produces 40,000 tonnes of wire per year.
“Our capacity expansion at the Thai plant is underway. It is a work in progress. We will reach the capacity of 60,000 tonnes per year by March of next year. This is the plan for which all the factory and the machines are set up. “We are also getting environmental impact assessment done in Thailand and everything that should be done by this fiscal year,” he said.
Chordia noted that Rajratan Global is expected to reach a combined capacity of over 90,000 tonnes (over 55,000 tonnes in India and over 35,000 tonnes in Thailand) in this fiscal year. “We recently increased the capacity that we were able to use to the maximum. This, along with strong demand, gave us good financial performance in the second quarter. Businesses are doing well. They are producing at full capacity, which has created full demand for us, ”he said.
In the previous quarter, Rajratan Global installed a new strand stripping line, improving the quality of end products while lowering costs in addition to modifying the coating line to further improve efficiency. In Thailand, it installed a new improved patenting line to improve efficiency and developed additional supply points for raw materials while strengthening the logistics and supply chain from India. He added that not all imports from China and South Korea are happening now due to logistics issues, adding that “we are also getting this business because we are getting more orders.”
Read also :