Rathi Steel and Power Limited, a prominent manufacturer of stainless steel long products, has announced its intention to invest up to Rs. 50 crores in a forward integration project at its current facility in Ghaziabad. This initiative will focus on converting wire rods into downstream products such as bright bars and wires.
This project is a strategic initiative aimed at improving capacity utilization by utilizing a portion of the company’s existing in-house production. It will also allow Rathi Steel to broaden its supply reach to sectors such as automotive (including EVs and batteries), defense, solar energy, engineering, and household products, either directly or through B2B customers who will use these products. The implementation will occur in phases at the company’s current site in Ghaziabad, Uttar Pradesh, guided by technical and commercial feasibility as well as market conditions.
Mr. Rakesh Kumar, CFO of Rathi Steel and Power Ltd., expressed enthusiasm about the company’s forward integration into downstream products. He noted that this initiative aligns with their vision to strengthen their market position by adding value and expanding offerings. The project aims to create a value chain from scrap to finished products, achieving cost synergies and improving profitability while leveraging existing capacities. He also thanked stakeholders for their continued support.