Rama Steel Tubes Limited, a manufacturer of ERW steel pipes and tubes, has announced plans to acquire Automech Group, a UAE-based engineering and high-precision manufacturing company, for a total consideration of AED 296 million. The acquisition is intended to accelerate the company’s entry into fabrication and specialised engineering segments, expanding its presence across Gulf Cooperation Council (GCC) and Middle East and North Africa (MENA) markets.
The company said the transaction is expected to increase consolidated revenue from INR 10.65 billion in FY25 to more than INR 22 billion by FY27, with EBITDA margins projected to improve from four percent to about 10 percent over the same period. The combined EBITDA is anticipated to rise from INR 460 million in FY25 to INR 2.36 billion by FY27, driven by operational synergies and an enhanced product-service mix. Automech recorded standalone revenue of INR 6.11 billion and profit of INR 1.01 billion in FY25, based on an exchange rate of 24.33 for AED to INR.
RSTL stated that the integration is expected to strengthen its standalone operations by shifting part of Automech’s production chain to its domestic manufacturing facilities in India. The company added that it plans to implement upgraded accounting and governance systems across Automech. Proposed dividend and royalty flows from the acquired entity are also expected to add to RSTL’s financial performance once integration is completed.
Under the terms of the agreement, RST International Trading FZE, a wholly owned subsidiary of Rama Steel Tubes, will acquire 78.38 percent of Automech Group, while the parent company will acquire the remaining 21.62 percent. The acquisition is expected to close within six months, subject to customary approvals. Automech’s capabilities in precision machining, heavy fabrication, marine services and dewatering systems will complement Rama Steel Tubes’ manufacturing base, giving the company access to new engineering-focused segments and customers across regional infrastructure, energy and industrial sectors.
Automech Group, founded in 1991, operates multiple specialised companies offering machining, fabrication, marine engine services, dewatering systems and oilfield equipment support across Gulf and Southeast Asian markets. The group’s facilities are accredited to API, ASME and ISO standards, and hold approved vendor status with ADNOC.
Rama Steel Tubes Limited is a manufacturer of ERW steel pipes, galvanised pipes and related products serving infrastructure, construction and industrial markets. The company operates manufacturing units across India and exports to multiple international markets through subsidiaries in the UAE and Nigeria.
