Rathi Steel & Power Ltd is a secondary steelmaker built on more than 80 years of family expertise - it melts scrap to make stainless steel long products and TMT bars from a single plant in Ghaziabad, Uttar Pradesh. The company traces its roots to a small re-rolling mill set up in Delhi in the 1940s, was among the first in India to adopt TOR® and THERMEX® technologies, and survived a near-fatal debt crisis after its Odisha plant failed - emerging debt-free by 2024 and refocused entirely on its original NCR facility. Its recurring approach is to compete not on scale but on process efficiency: co-locating melting and rolling on one campus so hot billets move directly into the mill without cooling, saving energy and metal that rivals lose. # Business segments A single integrated steel plant making two product families - stainless steel long products and TMT bars - from the same melting shop and rolling mill, with stainless steel now the strategic priority. ## 1. Stainless steel long products: the company's growth engine **India's first stainless steel wire rod maker using direct hot-billet charging - a process edge that cuts cost, energy and carbon in a single step.** - **Hot billets skip the reheat furnace** - billets from the continuous casting machine travel straight to the rolling mill via roller conveyors while still hot, avoiding the cooling and reheating that most competitors require; this saves roughly 1.25-1.5% in energy and yield loss from oxidation. - **Scrap-based, not ore-based** - the plant runs on scrap and ferro alloys rather than iron ore and coal, which gives it a carbon footprint of 0.40-0.80 tonnes of CO₂ per tonne of steel, roughly a third to half that of conventional blast-furnace producers. - **Sold primarily through B2B channels, with TMT bars also sold via dealer network and retail** - the product range spans billets, wire rods, flats and rebars, with stainless steel products sold 100% through B2B channels to downstream manufacturers like KEI Wires & Cables and Bansal Wire Group, and raw material purchases hedged against confirmed orders so the company avoids speculative inventory positions. - **A recent push into stainless steel rebars** - the company received BIS certification for high-strength deformed stainless steel bars in 32 mm diameter in February 2025 and plans to expand the range from 8 mm to 32 mm, targeting a retail segment where it sees first-mover potential in India. - **Running well below capacity** - the steel melting shop operated at about 53% utilisation in FY26, producing 45,452 tonnes of billets, meaning significant volume headroom exists without new capital expenditure. ## 2. TMT bars: the revived legacy business **A once-dormant mill restarted in 2025 to put idle assets to work and carry the Rathi brand back into North India's construction sites.** - **A brand built on early technology leadership** - the company was among the first in India to adopt TOR® technology in the 1970s and THERMEX® technology thereafter, and today produces premium Fe 550 and Fe 550D grade bars under the "Rathi Powertech" brand. - **Green certification opens institutional doors** - the 550 grade bars carry a GreenPro Type-1 Ecolabel from the Confederation of Indian Industry, which helps developers earn LEED and IGBC green building credits and makes the product eligible for government and institutional projects that increasingly mandate certified steel. - **Dealer network across seven states** - TMT bars are sold through a rejuvenated network of dealer outlets across North India, with credit terms of 30 to 60 days, and key end-customers include DLF, Omaxe, ATS, Delhi Metro and Indian Oil. - **Direct charging is coming to TMT too** - the company has begun implementing the same hot-billet charging technology for the TMT division that already gives its stainless steel operations a cost advantage. # Integrated manufacturing operations **One 12.5-acre campus in Ghaziabad houses both the melting shop and the rolling mill - the co-location is the operating model.** - **Melting and rolling under one roof** - the steel melting shop (capacity roughly 85,000 tonnes per annum) feeds billets directly to the rolling mill (capacity 2,00,000 tonnes per annum) on the same site, eliminating the need to transport, store and reheat semi-finished steel. - **Cheapest outward freight in the industry** - the Ghaziabad location, close to NCR demand centres, keeps outward logistics costs at ₹800-1,000 per metric tonne versus about ₹1,500 for peers, a structural advantage that compounds with every tonne shipped. - **Low-cost power through open access** - the company sources roughly 30% of its electricity from green sources (solar, wind and hydro) via open access, benefiting from what management calls the lowest power costs in Uttar Pradesh. - **Forward integration is the next step** - the board has approved a downstream project worth up to Rs.50 crores to add stainless steel wires, bright bars, and annealed and pickled products on surplus land already available at the Ghaziabad site, moving the company toward becoming an end-to-end player. - **A recent regulatory hiccup** - the steel melting shop was temporarily closed in late October 2025 by the Commission for Air Quality Management over alleged particulate matter violations, which the company disputed, and operations resumed within two weeks with compliance conditions attached. # Group structure and partners **A standalone, debt-free company with a licensed family brand and no subsidiaries - rebuilt after a brush with insolvency.** - **The Rathi brand is licensed, not owned** - the brand name that carries over 80 years of recognition in Indian steel markets belongs to the Rathi family and is used by the company under licence. - **The Odisha plant is gone, and so is the debt** - an integrated steel unit commissioned in 2008 was shut by 2012 after the government failed to allocate promised iron ore mines; its assets were sold by the asset reconstruction company in November 2021 for Rs.90 crores, and the company achieved debt-free status by March 2024. - **A fresh start with Kotak Mahindra Bank** - post-debt-resolution, the company re-established banking relationships by taking working capital facilities and a term loan, signalling restored lender confidence. - **A 10-year argon supply pact with Linde India** - signed in August 2023, the agreement secures liquid argon, a critical input for value-added steelmaking at the Ghaziabad plant. - **Promoter holding at just over 40%** - as of March 2024, promoters held 40.32% of the equity, with the balance widely held; the company has no subsidiaries, joint ventures or associates.