Rama Steel Tubes Limited has announced plans to acquire the UAE-based Automech Group — a multi-award-winning company known for its high-precision manufacturing services, machinery, and components. The deal is valued at AED 296 million (around ₹728 crore).
The acquisition is expected to give a major lift to Rama Steel’s standalone financial performance. The company aims to shift part of Automech’s production chain from the UAE to its own manufacturing facilities in India, improving efficiencies and margins. Automech reported standalone revenue of ₹611 crore and a profit of ₹101 crore in FY25.
Rama Steel also expects its financials to get a further boost through proposed dividend and royalty payouts from Automech once the integration is completed.
Beyond the numbers, the acquisition marks a big strategic step for Rama Steel. It positions the company to expand globally in the high-margin, value-added precision engineering segment — moving it beyond its traditional identity as a pipes manufacturer to a more advanced engineering player.
Under the deal structure, a wholly owned subsidiary of Rama Steel Tubes Limited will acquire 78.38% of Automech Group, while RSTL itself will pick up the remaining 21.62%. The transaction is expected to be completed within six months, subject to customary approvals.
