Contract Conquest & Capacity Catalyst Crafting Growth

Steel Exchange India Limited has won an important conversion contract from state-owned Rashtriya Ispat Nigam Limited to process 1.20 lakh metric tons of billets annually into Vizag Steel TMT rebars. The two-year contract, extendable by another year by mutual consent, is valued at up to ₹210 crore, or up to ₹70 crore per annum if extended. The contract will see SEIL converting billets into various sizes of TMT bars under the Vizag Steel brand, directly from its newly established rolling mill.

Operational Optimization & Output Opportunity Orchestrated

This conversion work will take place at Steel Exchange India's modern rolling mill, enhancing its capacity utilization and providing a direct boost to revenues. According to company management, “This contract will ensure better capacity utilization and increased revenues for the company,” confirming that SEIL is set to benefit from higher throughput and stable long-term work volume. The modern facility positions SEIL to handle large-scale production efficiently.

Strategic Synergy & Sector Strength Signified

The contract with Rashtriya Ispat Nigam Limited, a respected public sector steel producer, is a strategic milestone for Steel Exchange India. By partnering with RINL, SEIL demonstrates its strong capability to deliver high-quality steel conversion services. Management commented, “We are proud to collaborate with RINL and look forward to fulfilling the contract terms with dedication and quality,” reflecting SEIL’s commitment to strengthening its role in India’s competitive steel sector.

Commercial Clarity & Contractual Confidence Cemented

Under the contract terms, SEIL will convert billets provided by RINL into finished Vizag Steel TMT rebars, meeting specifications and quality standards. The total potential value of ₹210 crore depends on the annual conversion volume and price agreement. The contract spans two years initially, with the option to extend by an additional year if both parties agree, creating a stable revenue stream over multiple years.

Market Momentum & Manufacturing Milestone Manifested

SEIL's management believes this deal underlines the company’s growing importance in domestic steel conversion. “The collaboration with RINL is a mark of trust in our capability and operational excellence,” they noted, adding that steady billet conversion volumes will help balance demand fluctuations and stabilize earnings. The new contract complements SEIL’s existing commercial portfolio and strengthens its manufacturing footprint.

Key Takeaways

• SEIL secured a ₹210 crore contract from RINL to convert 1.20 lakh metric tons of billets.

• Work will be done at SEIL’s new rolling mill, boosting capacity use and revenue.

• The deal highlights SEIL’s strategic growth and stronger role in India's steel market.