APL Apollo Tubes Ltd. announced on Friday that it has signed a Memorandum of Understanding (MoU) with Zamil Steel Buildings India Pvt. Ltd. to develop a market for pre-engineered steel buildings (PEB) made from structural steel tubes.
The company stated in its BSE regulatory filing. “The Indian PEB industry is around 1 million tons in size, which mainly uses conventional steel products (non-tubular sections). The usage of structural steel tubes is just 5% in PEB structures.”
“This can help create a new annual market of 200,000 tons for its high diameter and high thickness steel tubes ‘Apollo Column’ in the coming years. APL already has a huge market share in this segment, and this will get a further boost next year with the launch of a 500 x 500 mm diameter structural steel tube. APL’s target is to increase the share of Apollo Column multifold to its revenue in the coming years. This will aid expansion of its EBITDA margin and improve its return profile as
these tubes are high-margin products.
Zamil Steel India plans to increase the deployment of structural steel tubes in all its projects, with a target to make the maximum possible usage of structural steel tubes in all its offerings, to leverage the lower costs and higher quality of such products to increase their market space.”
