APL Apollo Tubes (APL) has signed a Memorandum of Understanding (MoU) with Zamil Steel Buildings India (Zamil Steel India) to develop a market for pre-engineered steel buildings (PEB) made from structural steel tubes. This is in line with APL’s strategy to create new markets for structural steel tubes in India.
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. Zamil Steel India, a leading PEB engineering and manufacturing company in India, recognizes the tremendous scope for a growth in demand for affordable modular PEB structures, and also recognizes how increasing the composition of structural steel tubes will result in economical, stronger, and more durable structures as well as allowing minimizing the project completion time.
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.
The company is targeting tubular PEB steel building solutions in areas such as warehouses, industrial sheds, and commercial and residential complexes. Given the strong government push to improve the farm supply chain infrastructure and rural housing infrastructure, there will be substantial demand for the construction of warehouses and affordable housing projects in the coming years. Zamil Steel is a global pioneer and has long experience in developing PEB structures. The high usage of structural steel tubes in PEB structures will help Zamil Steel gain a competitive edge over its competitors.
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