Ram Ratna Wires Limited (RRWL) announced today its acquisition of a 60 per cent controlling stake in Tefabo Product Private Limited, a manufacturer of fabricated components and assemblies. The remaining 40 per cent stake will be held by Anup Balkrishna Vaidya.
The shares of Ram Ratna Wires Limited (RRWL) were trading at ₹599.05 down by ₹1.05 or 0.17 per cent on the NSE today at 3.05 pm.
The acquisition, formalized through share purchase and shareholders’ agreements on November 7, is expected to be earnings accretive for RRWL shareholders. Tefabo reported revenues of ₹7,815.18 lakhs for the fiscal year ended March 31, 2024, with a net profit of ₹436.65 lakhs.
The move marks RRWL’s entry into the fabrication components and assemblies sector, particularly targeting opportunities in renewable energy and railways. Tefabo’s existing operations include precision fabrication, structural fabrication, and power resistors manufacturing, with a client base comprises multinational corporations.
“With our entry into fabricated components and assemblies, we aim to enhance our contribution to a sustainable future,” said Mahendrakumar Kabra, Managing Director of RRWL.
Founded in 1992, RRWL is part of RR Global and is known for manufacturing super enameled copper winding wires under the RR Shramik brand. The company also produces copper tubes, pipes, BLDC Motors, Hub Motors, and HVLS Fans through its subsidiaries.