Rajasthan Tube Manufacturing Company Share price

Rajasthan Tube Manufacturing Company Limited (RTMCL) wasincorporated on 29th day of July 1985 with the Registrar ofCompanies Jaipur Rajasthan and obtained the certificate ofCommencement of Business on 22nd January 1986. The company commenced operations in 1988-89 with an object to manufacture80 mm to 200 mm dia ERW Black Steel Tubes. The company alsoinstalled a small tube mill for better utilisation of HR Coilsand to reduce the wastage of the same.Today RTMCL has emerged as one of the leading companies in steeltube industry manufacturing ERW steel pipes ranging dia 15mm to200 mm in Rajasthan. The tubes manufactured by the company are beingsold under the brand name RTL and are well accepted in the market.The Company belongs to Steel Tubes/Pipes Industry and commencedcommercial production in Oct.1988. Initially the Companymanufactured only EPW Black pipes ranging dia 80mm to 200mm.Thereafter to reduce the wastage of H.P. Coils the Companyinstalled a Small Tube Mill to produce EPW Black pipes rangingdia 15mm to 75mm for better utilisation of resulting sidecutting of H.P. Coil in the manufacturing of pipes dia 80mm to200mm.The Company''s product EPW Black pipes find extensive applicationin agriculture (for minor irrigation project) water supply.urban development steel fabrication and for conveying variousfluids in industries like petrochemicals fertilizers oilnatural gas etc. (Source: Investment Week Vol.3 No.43Oct.25-311993)The Company has been selling its major production in Rajasthanbecause of better price realisation on account of sales taxexemption and lower transportation cost.The total market for steel & tubes is estimated to Rs.2000 Crores ofwhich 70% is catered by the organised sector and the balance fromunorganised sector. TISCO with market share of 18% is on the top ofthe list. The industry at present facing under utilisation ofcapacity because of shortage of H.R.Coil its main raw materialas a result the capacity utilisation is below 40% (Source :Dalal Street Vol IX No. 14 July 24 1994). To meet theshortfall in the domestic demand of H. P.Coils about 18 Lacs MTof H. P. Coils is expected to be added during the current year(Source Investment Week Oct 3-91994)According to the report of the Industrial Development Deptt.Ministry of Industry the demand of steel pipes is expected togo up to 18.60 lacs M.T. in 1995 and even higher to 29.00 LacsM.T. by the year 2000 (Source Investment Week Vol.3 No. 43 Oct25-31.1993)The critical aspect of steel tube/pipe industry has been theavailability of H.R. Coils which is basic raw material. Sincethe availability of H.R. Coil expected to increase as mentionedelsewhere in the prospectus. In view of the above the companyhas immense growth potential looking to its existingcapacities.