Steel Exchange India Bags ₹210 Cr Contract from RINL for Vizag Steel TMT Rebar Conversion

In an extraordinary turn of events, Steel Exchange India Limited (SEIL) has just bagged a major contract from RINL, popularly known as Vizag Steel, for converting billets into branded TMT rebars for the public sector company. The contract involves the conversion of 1.20 lakh tonnes per annum of billets into various sizes of TMT bars under the Vizag Steel brand.

The contract awarded on competitive bidding is for a maximum term of two years with a provision for an optional one-year extension. With the possibility of this additional year being awarded, the total value of the contract could be up to ₹210 crore, estimated at ₹70 crore a year.

The rebar conversion will be done at SEIL’s latest rolling mill, which the company states will henceforth work to better capacity. Since it is located within SEIL’s facilities, this mill will help in better operational efficiency and topline growth.

This marks a great win for SEIL, reaffirming its name in evolving secondary steel manufacturing. It also further strengthens their relationship with RINL, one of India’s major producers of long steel products.

The conversion contract should position SEIL to play a bigger role in the supply chain of government and private infrastructure projects, especially since demand for high-quality construction steel is increasing in India. These activities are, in turn, fulfilling Vizag Steel’s well-accepted brand in the market.

It also reflects a general trend in the industry to synergize operations and outsource conversion works to save on production costs and schedules.

Steel Exchange India is mainly into the manufacturing and selling of TMT rebars and billets and operates captive power stations of its own. The new contract is expected to make a meaningful contribution to the revenue as well as the capacity utilization of the company for the entire contract duration.

This move would buoy investor confidence and, with medium-term earnings visibility for SEIL.