With the Modi government aiming to make India a global manufacturing hub, foreign investment inflows are constantly reaching new heights. Europe-based financial services group Societe Generale has bought stake in leading steel pipe maker Rama Steel Tubes.
According to BSE data, Rama Steel has entered into an agreement with JSW Steel, one of India’s largest steel makers, for procurement of hot rolled coils, which are used in the manufacture of steel tubes and pipes.
This development assumes significance as the demand for steel and related products in India has grown steadily over the years, in contrast to the depressed global demand.
According to industry body Indian Steel Association (ISA), steel demand in India will continue to grow by 8-9 million tonnes. It added that steel demand is expected to touch 128.9 million tonnes during 2023-24, as against 119.9 million tonnes during the previous year, driven by rising demand from domestic construction, railways and capital goods sectors.
It added that the MoU also establishes Rama Steel, the official distributor partner of JSW Steel for distribution of hot rolled coils across the western region.
“The MoU brings forth several competitive advantages as it provides access to top-tier raw materials and also enhances the procurement process, ensuring quick and efficient sourcing, thereby improving our supply chain management,” said a statement in the SE filing. Capabilities get boosted.” ,
According to ISA, the steel sector has benefited from India’s strong economic growth and industries such as automotive and consumer durables are expected to boost steel consumption. India is the second largest crude steel producer in the world. Total production to increase by 4.2 per cent to a record 125.3 million tonnes in 2022-23.
Specifically, the government is taking initiatives to increase the GDP share of the manufacturing sector to 25 percent from the current 16 percent.