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Rama Steel Tubes Ltd. has signed a deal with the Uttar Pradesh government for setting up a steel processing unit at an estimated investment of Rs 600 crore.

The company said that it has signed a Memorandum of Understanding (MOU) with the UP government under the lnvest UP Programme.

As a part of the MOU, the proposed investment of Rs 600 crore will be invested in a phased manner.

The proposed project will go a long way in helping to achieve Chief Minister Yogi Adityanath's vision of building UP’s $1 trillion economy.

Further, the favourable business environment and the special incentive packages offered by the state government will additionally help the company to strengthen its position in the steel tubes and pipes industry.

The setting up of the steel processing unit includes MS Pipes, STP Poles, Gl Pipes, CR Coils, GP Coils, and Colour Coated Coils.

Founded in 1974, Rama Steel Tubes Ltd. is a leading manufacturer in the steel tube industry. It has four manufacturing capabilities Sahibabad (U.P.), Khopoli (Maharashtra), and Anantapur (Andhra Pradesh).

The company recently acquired a 51 percent stake in Ashoka lnfrasteel and a 50 percent stake in Hagar Mega Mart. The company reported its highest sales volume in the December quarter.

Last week, Executive Director Richi Bansal told CNBC-TV18 that the company plans to extend Rama Steel Tubes' exports to 25 percent of total sales. According to Bansal, the export margin for FY23 was expected to be better than the domestic margin.

Shares of Rama Steel Tubes ended 1.86 percent lower at Rs 42.30 on Friday.

(Edited by : Rukmani Krishna)