Ahmedabad: Ahmedabad-based Rhetan TMT Limited has signed a Memorandum of Understanding (MOU) with Bajaj Tubular Products Private Limited for the proposed procurement of around 20,000 metric tonnes (MT) of TMT bars over 24 months.
The arrangement could carry broader commercial potential of around Rs 250-300 crore during the two-year period, according to Rhetan TMT’s internal assessment.
Orders To Be Requirement-Based
Under the MOU, Pune-based Bajaj Tubular Products has expressed its intention to procure approximately 20,000 MT of TMT bars from Rhetan TMT.
However, the proposed quantity is indicative and does not constitute a firm order. Supplies will be undertaken through individual purchase orders depending on Bajaj Tubular’s business and project requirements.
Supply schedules, product availability and Rhetan TMT’s production capabilities will also determine actual deliveries during the 24-month period.
Rs 300 Crore Opportunity
Rhetan TMT estimates the broader relationship could generate commercial potential of approximately Rs 250-300 crore, factoring in expected product mix, possible order frequency, market realisations and scope for additional business.
The company clarified that the estimate represents a business opportunity assessment and should not be considered a contracted order value or assured revenue.
Subject to actual purchase orders and successful execution, the arrangement could help Rhetan TMT increase sales volumes, improve manufacturing capacity utilisation and develop a larger recurring business base.
Managing Director Shalin A. Shah said the MOU reflects the company’s efforts to broaden business relationships with established players across the steel and infrastructure ecosystem.
He added that the proposed arrangement provides an opportunity to develop a structured and sustained commercial association while exploring additional business over the two-year period.
Solar Project Starts Generation
Separately, Rhetan TMT has commenced power generation from its 1 MW captive ground-mounted solar power project at its manufacturing facility in Kadi, Gujarat.
The operational project will supply renewable electricity for captive consumption, strengthening the company’s energy infrastructure while supporting manufacturing efficiency.
