Rathi Steel Receives Rs 7.8 Cr Order from Bansal Wire Industries
Rathi Steel secures a Rs 7.8 crore order from Bansal Wire Industries for stainless steel products, marking continued growth and strong market presence.
by Damodharan N
Updated Jul 19, 2024
Table of Content
Rathi Steel and Power Limited has secured a order from Bansal Wire Industries Limited in the downstream applications of steel products. The contract, valued at approximately Rs 7.8 crore (including GST), involves the supply of stainless steel products.
The order comes as part of Rathi Steel's ongoing business operations and is not a related party transaction. The deal has been conducted on an arm’s length basis, ensuring transparency and fairness.
The stainless steel products supplied will be used by Bansal Wire Industries in their manufacturing processes, reflecting the strong demand for high-quality materials in the wire industry.
The completion date for the contract and further details regarding specific product categories will be outlined as the order progresses. This new order highlights Rathi Steel's continuing growth and strong market presence.
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Market Reaction
On July 19th, following the announcement of Rathi Steel and Power Ltd's Rs 7.8 crore order from Bansal Wire Industries, the stock exhibited notable volatility. The price opened at Rs 68 and briefly peaked at Rs 69 by 9:17 AM, before dipping to Rs 67. By 10:11 AM, the price had risen again to Rs 69, reflecting significant market fluctuations.
As of 11:10 AM, the stock was trading at Rs 69.56 on the BSE, demonstrating strong investor interest and a positive reaction to the order announcement. The price movement indicates a responsive market with high trading activity around the news.
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Rathi Steel and Power
Rathi Steel and Power Ltd, previously known as Rathi Udyog Ltd, is part of the P.C. Rathi Group, which has been a prominent player in the steel industry since the 1940s. Founded by Shri Punam Chand Rathi, the company specializes in manufacturing high-quality rebar and wire rods, essential for construction and industrial applications.
Their Ghaziabad plant has a production capacity of 2,00,000 TPA for rolled products and 85,000 TPA for melting, featuring advanced facilities for stainless steel and alloy steel production.
Rathi Steel's products include Thermo-Mechanically Treated (TMT) bars and stainless steel wire rods, widely used in infrastructure projects. With a strong dealer network of nearly 1,000 outlets across Northern India, the company focuses on technological upgrades and environmental sustainability to enhance its market presence.
Bansal Wire Industries
Bansal Wire Industries, established in 1985, is a leading in the steel wire manufacturing sector in India, recognized as the largest stainless steel wire producer and the second-largest steel wire manufacturer by volume.
With a production capacity of 72,176 MTPA for stainless steel wire and 206,466 MTPA for steel wire in Fiscal 2023, the company holds significant market shares of 20% and approximately 4%, respectively.
Bansal Wire serves a diverse range of sectors, including automotive, general engineering, infrastructure, hardware, consumer durables, power and transmission, agriculture, and auto replacement.
The company operates four manufacturing facilities and is expanding with a new large-scale plant in Dadri, aiming to be among the largest in Asia. With ISO certifications and a global presence in over 50 countries, Bansal Wire Industries maintains a robust and balanced business model with a wide range of products and a strong customer base.
Rathi Steel Receives Rs 7.8 Cr Order from Bansal Wire Industries -FAQs
1. What is the value of the contract Rathi Steel received?
The contract is valued at approximately Rs 7.8 crore, including GST.
2. Who placed the order with Rathi Steel?
The order was placed by Bansal Wire Industries Limited.
3. What products are included in the order?
The order includes stainless steel products.
4. Did this order a related party transaction?
No, the order is not a related party transaction and was conducted on an arm’s length basis.
5. What will Bansal Wire Industries use the stainless steel products for?
The products will be used in Bansal Wire Industries' manufacturing processes.
6. What was Rathi Steel's stock price movement on July 19th?
The stock opened at Rs 68, peaked at Rs 69, dipped to Rs 67, and later rose back to Rs 69.56.
7. What time did the stock reach its peak price on July 19th?
The stock reached its peak price of Rs 69 by 9:17 AM.
8. How did the stock price react to the announcement?
The stock showed high volatility with significant price fluctuations in response to the announcement.
9. What is Rathi Steel and Power Ltd's main business?
The company specializes in manufacturing rebar and wire rods, including Thermo-Mechanically Treated (TMT) bars and stainless steel wire rods.
10. How large is Bansal Wire Industries’ production capacity?
Bansal Wire Industries has a production capacity of 72,176 MTPA for stainless steel wire and 206,466 MTPA for steel wire.