Rajratan Global Wire to cater to US, Europe markets with upcoming new manufacturing facility in Chennai – ET Auto

Its consolidated net profit surged 140.77 per cent to Rs 32.60 crore in the September 2021 quarter this fiscal on a revenue of Rs 241.17 crore over Rs 139.02 crore in Q2FY21.

Rajratan Global Wire, a leading tyre bead wire maker, has said its upcoming port-based new manufacturing facility in Chennai will cater to the US and European markets besides meeting domestic demand. Currently, the company has two manufacturing plants, one each at Pithampur in Madhya Pradesh and Ratchaburi in Thailand, with a combined capacity of around one lakh tonnes per annum.

Besides, expanding production at the Thailand plant, Rajratan Global Wire is also in the process of setting up a 60,000 tonnes per annum capacity plant in Chennai. The company exports products to customers in India from Thailand, Italy, the US, The Czech Republic, South Korea, Malaysia, Indonesia, Philippines, Vietnam, Sri Lanka, the UAE and Bangladesh.

Its consolidated net profit surged 140.77 per cent to Rs 32.60 crore in the September 2021 quarter this fiscal on a revenue of Rs 241.17 crore over Rs 139.02 crore in Q2FY21.

Apart from tyre bead wire, Rajratan Global is also into the production of high-carbon steel wire. “We have already announced setting up a 60,000 tonnes per annum capacity greenfield plant for tyre bead wire, in which we are investing Rs 300 crore in phase one.

“Since it will be a port based-location, we are also planning to export from this facility to Europe and the US,” Sunil Chordia, chairman and managing director of Rajratan Global Wire, told PTI. He added that the plant is expected to be completed in one year from the day it gets the required land from the state government with which it has signed an initial pact in July.

Chordia said that as part of its overall growth plans, the company is planning to double the capacity in the next two years to about two lakh tonnes, including 1.85 lakh tonnes for the tyre bead wire. Currently, the Pithampur facility has a production capacity of around 60,000 tonnes per annum, while the Thailand plant produces 40,000 tonnes of wire per annum.

“Our capacity expansion at the Thailand plant is on. That is work in progress. We will achieve the 60,000 tonnes per annum capacity by March next year. That is the plan for which all the plant and machinery is installed. “We are also getting environmental impact assessment done in Thailand and all that should be done by this financial year,” he said.

Chordia noted that Rajratan Global should achieve a combined capacity of over 90,000 tonnes (over 55,000 tonnes in India and more than 35,000 tonnes in Thailand) this fiscal. “We have expanded capacity lately that we have been able to utilise to the full extent. It, along with strong demand, has given us good financial performance in the second quarter. The companies are doing well. They are producing to their full capacity, which has created full demand for us,” he said.

During the previous quarter, Rajratan Global installed a new strand pickling line, enhancing the quality of finished goods while moderating costs besides modifying the coating line to further enhance efficiency. In Thailand, it installed a new upgraded patenting line to enhance efficiency and developed additional raw material sourcing points while strengthening logistics and supply chain from India. He added that whatever imports that were there from China and South Korea are not happening now due to logistics issues, adding that “we are getting that business too as we are getting more orders”.

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The company’s consolidated revenues in the quarter grew by 73.48% to INR 241.17 crore as against Rs 139.02 crore during the previous quarter ended September 2020.

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