Steel Exchange India Limited (SEIL) has been awarded a conversion contract from Rashtriya Ispat Nigam Limited (RINL) to convert 1.20 lakh tons per annum of billets into Vizag Steel TMT rebars. The contract, valued at up to ₹210 crore, spans two years and is extendable by another year with mutual consent.
| Particulars | Details |
|---|---|
| Name of the entity awarding the order | Rashtriya Ispat Nigam Limited (RINL) |
| Nature of the order | Conversion of billets into Vizag Steel TMT rebars |
| Conversion Capacity | 1.20 lakh Tons Per Annum |
| Contract Type | Domestic |
| Contract Duration | 2 years, extendable by 1 year with mutual consent |
| Broad commercial consideration | Up to INR 210 Cr (Up to INR 70 Cr PA for 3 Years) |
Operational Impact
The conversion work will be conducted at Steel Exchange India's existing new rolling mill, enhancing capacity utilization and boosting revenue. This contract enables the company to convert billets into various sizes of TMT Bars under the Vizag Steel brand.
Strategic Significance
This contract with RINL, a public sector company, marks a significant achievement for Steel Exchange India, demonstrating its capabilities in steel conversion. The collaboration is expected to enhance SEIL's market position and operational efficiency.
Management Commentary
The management of Steel Exchange India Limited believes that this contract will lead to better capacity utilization and increased revenues for the company. The company is committed to fulfilling the terms of the contract and delivering high-quality TMT bars.
Regulatory Disclosures
The company has confirmed that the promoter/promoter group/group companies have no interest in the order/contract. Additionally, the order/contract does not fall within related party transactions and is conducted at arm's length.
