Ram Ratna Wires Ltd, a leading Indian manufacturer of super enameled copper winding wires, has announced the acquisition of a 60% controlling stake in Tefabo Products Pvt. Ltd., a company specializing in fabricated components and assemblies. The remaining 40% stake in Tefabo will continue to be held by Mr. Anup Balkrishna Vaidya.
The acquisition marks a strategic diversification for Ram Ratna Wires into the manufacturing of fabricated components and assemblies, with a particular focus on the rapidly growing renewable energy and railway sectors.
Tefabo is recognized for its expertise in:
- Precision Fabrication
- Structural Fabrication
- Power Resistors
The company serves a wide array of industries, including construction equipment, railways and metro systems, and the renewable energy sector, with multiple multinational corporations as clients. Tefabo’s state-of-the-art fabrication setup has enabled it to become a key supplier of critical mechanical components to domestic and international markets.
For the financial year ending March 31, 2024, Tefabo reported a turnover of ₹78.15 crore, underlining its significant market presence.
Strategic Importance of the Acquisition
This move aligns with Ram Ratna Wires’ strategy to capitalize on opportunities in India’s infrastructure development and clean energy transition, bolstering its position in sectors pivotal to the country’s growth story.
The acquisition will also enable Ram Ratna Wires to expand its product portfolio beyond copper winding wires, leveraging Tefabo’s capabilities to deliver high-quality fabricated components and assemblies to the renewable energy and railway industries.
Key Highlights of the Acquisition:
- Enhances Ram Ratna Wires’ presence in renewable energy and railway sectors, both experiencing rapid growth.
- Strengthens ties with multinational corporations and key domestic clients through Tefabo’s established network.
- Expected to be earnings accretive for Ram Ratna Wires’ shareholders.
Positioning for Future Growth
Through Tefabo, Ram Ratna Wires aims to meet the increasing demand for mechanical components from India’s infrastructure boom and clean energy push. The acquisition positions the company as a significant player in India’s industrial transformation, with a robust presence in both domestic and international markets.
This strategic move underscores Ram Ratna Wires’ commitment to innovation and diversification as it seeks to capitalize on emerging opportunities across critical sectors.