Rama Steel Tubes Limited (RSTL) (NSE: RAMASTEEL; BSE: 539309), one of India’s leading producers of steel pipes and tubes, has announced an agreement to acquire Automech Group, a UAE-based engineering and precision manufacturing company, for AED 296 million (approx. ₹728 crore). The transaction marks a major strategic shift for RSTL as it moves into high-margin, technology-intensive engineering and fabrication segments while strengthening its presence across the GCC and MENA regions.
RSTL expects consolidated revenues to increase by more than 113%—from ₹1,065 crore in FY2025 to over ₹2,200 crore by FY2027—and projects EBITDA to grow from ₹46 crore to approximately ₹236 crore over the same period, driven by operational synergies and a more diversified product-service mix. Automech reported standalone FY2025 revenue of ₹611 crore and profit of ₹101 crore.
The acquisition also strengthens RSTL’s standalone financials, as parts of Automech’s production will be shifted to RSTL’s Indian facilities, reducing costs and enhancing margins. Further financial uplift is expected through dividends and royalty flows to the parent company once integration is complete. RSTL also plans to implement world-class governance and accounting standards across Automech to ensure compliance and complete transparency.
Under the share purchase agreement, RST International Trading FZE, a wholly owned RSTL subsidiary in the UAE, will acquire 78.38% of Automech Group, while RSTL will acquire the remaining 21.62%. The deal is expected to close within six months subject to regulatory approvals.
The acquisition combines RSTL’s manufacturing scale with Automech’s precision machining, heavy fabrication, marine services, dewatering systems, and oilfield engineering capabilities. Automech’s facilities—certified under API, ASME, and ISO standards and approved by ADNOC—will give RSTL direct access to high-value clients and markets across energy, infrastructure, and industrial sectors.
RSTL Chairman and Managing Director Naresh Kumar Bansal stated, “This acquisition marks a transformative moment for RSTL. By merging Automech’s engineering expertise with our established manufacturing base, we are positioning the company for global expansion in high-value engineered products. This is not just an acquisition—it is a strategic leap that sets the stage for the next era of RSTL’s growth.”
Rama Steel Tubes Limited is among India’s prominent producers of ERW steel pipes and tubes, galvanized pipes, and allied steel products. Backed by more than five decades of industry experience, the company offers a wide-ranging portfolio catering to the needs of infrastructure, construction, and industrial applications. Rama Steel Tubes operates modern manufacturing units across India and maintains a robust international footprint, exporting to several global markets through its subsidiaries in the UAE and Nigeria.
