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RAJPUTANA STAINLESS LTD. Advancing with the World
 
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Business Strategy  
 
 

Our continuous focus on achieving “Zero Error Product” commensurating with our motto “Quality beyond Stainless” has established our strong presence in the Indian Market.

It is our Company’s vision “to gain international recognition for cost leadership, product innovation and customer satisfaction and to be amongst the Top 10 Stainless Steel Producers in the Country”.

Following are the key strategic initiatives of our Company:

  • Capitalize on the growth of the Indian Stainless Steel sector.
  • According to the ISSDA the Indian Stainless Steel sector has grown at approximately 14% p.a. over the last 15 years. We estimate that this growth shall be maintained and may also increase, considering the improved economic environment over the last year. Our strategy is to concentrate on core manufacturing of stainless steel and be a part of this growth story. We plan to leverage the improving economic scenario to increase our capacity utilization and thereby improve top line and bottom line results.

  • Achieve end to end integration.
  • Currently, we are operating a Melting unit with an annual installed capacity of 40,000 MT but we are only producing around 13,000 MT. This is because all our Rolling activities are done outside on a job work basis, and hence we cannot control the Rolling Mills as per our requirements, which in turn reduces our production. Once we set up the proposed Rolling mill, we shall roll all our billets generated from the Melting unit, in house and shall be able to augment the production of the Melting unit likewise as per our requirement. Secondly, by installing an additional LRF Unit, our existing capacity of 40,000 shall be further augmented to 60,000 MT p.a and hence we are setting up rolling capacities on the same lines too. Lastly, other benefits of forward integration such as lower product cost, lower transportation costs, lower wastage and spillage costs will be attained form the said expansion.

  • Ensure Low Power Costs
  • We are power intensive industry and power contributes to a significant portion of our total costs. We plan to set up a Wind mill at Kutch having an installed capacity of 1500 KVA in addition to the existing Wind Energy units having aggregate capacity of 2100 KVA and hence we would be able to generate an aggregate power of 3600 KVA per annum. All the power units generated at these wind mills shall be transmitted and distributed to our production facilities at Halol. Once this new wind energy unit is commissioned, we shall be able to generate in-house considerable amount of the total power we consume. This shall help improve our bottom line figures and net operating margins. Also, we stand to benefit from the additional tax savings due to the increased depreciation on these units.  

  • Continue the focus on Quality
  • In line with our motto of “Quality beyond Stainless” we shall aim at achieving zero error products. For this, we are planning to modernize our existing Stainless Steel Melting Unit by installing New LRF Unit, New Testing Equipments and New Billet sharing machines. Once a Fully operational Rolling Mill is in place, the benefits from higher quality Billets shall be realized by top quality Rolling and Bright Bar facilities.