Rhetan TMT has signed a 24-month MOU with Bajaj Tubular Products for about 20,000 MT of TMT bars, with estimated potential of Rs 250-300 crore.

An MOU, or memorandum of understanding, is a written statement of intent. It does not lock either side into a firm order.

Rhetan TMT Ltd told exchanges on 25 September that Pune-based Bajaj Tubular Products Private Limited, a trader of steel pipes and infrastructure materials, plans to buy roughly 20,000 MT of TMT bars over two years.

These are the steel bars used to reinforce concrete in buildings and bridges. Actual supplies will arrive through separate purchase orders.

Each one will depend on Bajaj Tubular’s project needs, agreed delivery dates, stock availability and what Rhetan’s plant can produce. Prices are not fixed.

The two firms will set them order by order, based on market rates, taxes, duties and freight costs. Payment terms and delivery details will also be settled in each order.

Rhetan’s management pegs the wider opportunity at Rs 250 crore to Rs 300 crore across the 24 months. The company was quick to add that this is its own estimate, not a signed order value or assured revenue.

Either side can end the MOU with 30 days’ written notice. Managing Director Shalin A Shah said the MOU reflects the company’s push to work with established players in the steel and infrastructure space.

He said it gives Rhetan a chance to build a lasting business relationship while exploring more work together. The MOU follows a run of updates from the Gujarat-based manufacturer.

The company has said it approved lifting annual capacity at its Kadi plant from 45,000 MT to 75,000 MT and recently secured BIS certification for its Fe500D, Fe550 and Fe550D grades, which allows it to supply government and public sector projects.

It has also started a 1 MW captive solar plant at Kadi, which it says will help trim power costs. Power makes up nearly 20% of its overall costs. At its 16 September AGM, the company put forward a proposal to raise its borrowing limit from Rs 200 crore to Rs 300 crore.

For now, the MOU is a framework, not a firm order. Its final worth depends on how many purchase orders Bajaj Tubular actually places.

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