### **Company Overview** Rathi Steel & Power Limited (RSPL), incorporated in 1971 as Rathi Udyog Limited, is a publicly listed, profit-making steel company with over **80 years of cumulative industrial legacy** under the Rathi brand—tracing its roots back to a small re-rolling mill in Delhi established in the 1940s. A part of the Pradeep Rathi Group, RSPL operates as a modern, integrated steel manufacturer specializing in **stainless steel and TMT bar production**, with a strategic focus on sustainability, innovation, and market leadership in niche product segments. The company operates a **12.5-acre state-of-the-art integrated plant in Ghaziabad, Uttar Pradesh**, located near the National Capital Region (NCR), providing significant logistical and cost advantages. It also previously operated an integrated facility in Odisha with captive power, though this unit is currently inactive. --- ### **Key Business Segments** - **Primary Segment**: Steel and steel-related products - **Core Products**: - Stainless Steel: Wire Rods, Billets, Bright Bars, Flats, and SS Rebars (newly launched) - Mild Steel: Fe 500, Fe 550, and Fe 550D grade TMT bars under the **Thermax** brand - Downstream products under development: Annealed rods, wires, cold-forged fasteners, pickled & annealed bars --- ### **Manufacturing & Technology Capabilities** - **Installed Capacities**: - Rolling Mill: **200,000 metric tons per annum (TPA)** - Steel Melting Shop (Stainless Billets): **Approx. 85,000–90,000 TPA** - **Backward Integration**: ~45–50% self-sufficiency in billets - **Unique Technology**: - **India’s only stainless steel wire rod producer using Direct Billet Charging (DBC)** - Delivers **1.25–1.5% energy and yield savings** - Reduces fuel consumption, carbon emissions, and production costs - Hot-charging capability at Ghaziabad plant enhances efficiency - **Modernization & Capex**: - Over ₹40 crore invested in the past three years - Major refurbishment of steel melting shop completed in April 2025, improving operational efficiency - Modernization projects completed in FY24–25 support higher-margin product manufacturing --- ### **Strategic Focus & Growth Initiatives** 1. **Shift Toward Sustainable & Green Steel**: - Transitioning from TMT to **stainless steel and recycled "green steel"** - Utilizes **circular economy principles** by producing steel from high-grade scrap - Aims to become a **low-carbon, sustainable steelmaker** aligned with government green initiatives and global carbon norms 2. **Product Diversification & Expansion**: - **Stainless Steel Rebars**: - First-mover in India for retail stainless rebar segment - BIS certified for full 8–32 mm diameter range (including technically challenging 32 mm grade) - Targeting corrosion-prone coastal, railway, bridge, and infrastructure projects - **TMT Bar Business Growth**: - Restarted idle TMT mill; BIS license secured for Fe 550/550D grades - Growing demand from real estate developers in NCR and infrastructure sector - **Forward Integration Plan**: - ₹50 crore proposed capex for downstream project to convert wire rods into bright bars, wires, and fasteners - Target sectors: Automotive (including EVs), defense, solar, engineering, and household 3. **Capacity Utilization & Operational Efficiency**: - FY25 rolling mill utilization: ~24% (47,440 tonnes rolled) - Steel melting shop operating at ~60% utilization (54,517 tonnes billets in FY25) - Strategic goal: Increase utilization before pursuing greenfield expansions --- ### **Market Position & Distribution** - **Brand Strength**: - Strong brand equity under **Rathi** (licensed from promoter family for nominal royalty of ₹500/year) - Recognized for quality and reliability, especially in North India and NCR - Rathi-branded products used in high-profile projects: **Lotus Temple, Delhi Metro, Tehri Dam, LIC Delhi, Chattarpur Mandir Complex** - **Distribution Network**: - **B2C & Retail**: Extensive dealer network across **North India** supports retail rollout of TMT and stainless rebars - **B2B Channels**: Supplies stainless wire rods and billets to key industrial customers in automotive, renewable energy, defense, and railways - Collaborates with downstream players like Bansal, KEI, Supron - **Geographic Focus**: Stronghold in **North India**, with scalable platform for **national expansion** --- ### **Financial & Capital Structure** - **Zero-Debt Status Achieved**: As of **March 2024**, after liability resolution with ARCs and banks - **Renewed Credit Access**: Secured fresh credit lines from **Kotak Mahindra Bank** - **Low Leverage**: Among the least leveraged in peer group, with minimal interest and manpower costs - **Funding Strategy**: Primarily **internally funded growth**; ₹114 crores raised via preferential allotment in Feb 2024 to strengthen working capital and reduce debt - **Asset Efficiency**: Lean fixed asset base, surplus land at Ghaziabad plant for future expansion - **Sustainable Capital Structure**: Supports scalable and capital-light growth --- ### **Sustainability & ESG Alignment** - **Environmental Leadership**: - Direct billet charging reduces carbon footprint - Green steel production via recycling and clean energy mix (80% open market power includes renewables) - Positioned as a **low-emission alternative** to primary steel producers - **Policy Alignment**: - Supports government infrastructure and **"Make in India"** sustainable development goals - Complements **NHAI, Railway Board**, and coastal infrastructure mandates for stainless steel ---