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APL Apollo Tubes inks MoU with Zamil Steel Buildings

Friday, 06 Nov 2020
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APL Apollo Tubes (APL) has inked a memorandum of understanding (MoU) with Zamil Steel Buildings 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 usage of structural steel tubes is just five percent in PEB structures. This can help create a new annual market of 2,00,000 tonne for its high diameter and high thickness steel tubes ‘Apollo Column’ in coming years.

APL will get a further boost in 2021 with the launch of 500 x 500 mm diameter structural steel tube.

APL’s target is to increase the share of Apollo Column multifold to its revenue in 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 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.

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