PS Raj Steels

About the Company

Incorporated in November 2004, PS Raj Steels is engaged in the manufacturing and supply of stainless steel pipes and tubes in India. The company’s product range includes OD pipes, NB pipes, section pipes, and slotted pipes, catering to sectors such as railways, furniture, food processing, and heat exchangers. With a manufacturing unit in Hissar, Haryana, and a distribution network spanning 18 Indian states, the company caters to Original Equipment Manufacturers (OEMs) and traders, supported by 77 dealers. It generates revenue from both manufacturing and trading stainless-steel products.

Strengths

• Diverse product range with over 250 sizes and customization options.
• Cost-effective supply chain through a partnership with Jindal Stainless Limited (JSL).
• Strong distribution across 18 states, with OEMs and dealers contributing to revenue.
• Significant revenue from dealers (60%) and direct sales (40%).
• Continuously upgraded manufacturing facility to meet market demands.

Risks

• Business is concentrated in four states, exposing the company to regional risks.
• Heavy reliance on Jindal Stainless Limited (JSL) for 95% of raw materials poses supply chain risks.
• No long-term supply agreements with JSL or key suppliers, leading to potential disruptions.
• Over 60% of revenue comes from the top 10 customers, indicating high revenue concentration.
• Business is working capital intensive, requiring significant funds for operational liquidity.
• Fluctuations in steel prices can negatively affect profitability.