Rajratan Global sales drop, new markets being explored
Lower demand from Thailand is the reason for the sales drop; meanwhile, Rajratan's Thailand factory production is being ramped up after the environmental impact assessment (EIA) approval
Indore, India headquartered Rajratan Global Wire, which has a bead wires manufacturing set-up in Thailand, has reported a marginal drop in performance of 10.16 percent YoY to Rs 15.92 crore during Q2FY23.
Slow demand from local exporters in Thailand has been cited as the main reason. Sunil Chordia, Chairman and Managing Director, Rajratan Global Wire said, "This has pulled down our overall profitability".
Rajratan Global specialises in tensile grades bead wires which it currently supplies to almost all tyre manufacturers in the country. From its Thailand unit, Europe and American markets are catered to. Bead wires are used by tyre manufacturers and the company sources its raw material mostly from JSW.
Rajratan's Thailand factory production is being ramped up after the environmental impact assessment (EIA) approval. The EIA approval clears the way for reaching 60,000 TPA capacity. "We are in talks with new customers in Korea, Vietnam and Europe to cater to this expanded capacity," he added, emphasising that the company remains confident of delivering 20 percent compound annual growth rate (in volumes) over the next three to five years.
Chordia updated Autocar Professional about the progress of the under construction greenfield facility at Chennai that will also offer 60,000 TPA capacity.
Meanwhile, Rajratan Global will explore new market opportunities. "We have already initiated market surveys for the entire European region in preparation for this upcoming capacity," Chordia said.
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23 Oct 2022
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Mukul Yudhveer Singh
Shahkar Abidi