MOU signed with Bajaj Tubular for proposed procurement of ~20,000 MT TMT bars over 24 months
MOU executed with Bajaj Tubular Products Pvt Ltd for proposed procurement of about 20,000 MT TMT bars over 24 months.
By ScoutQuest · · 1 min read
- MOU Execution Date
- September 25, 2026
- Proposed Volume
- approximately 20,000 Metric Tonnes (TMT bars)
- Contract Term
- 24 months
- Management Estimate of Commercial Potential
- approximately Rs. 250-300 crore
- Termination Notice Period
- 30 days' prior written notice
What was shared
Rhetan TMT Limited has informed the exchanges that it executed a Memorandum of Understanding with Bajaj Tubular Products Private Limited, Pune, on September 25, 2026. Bajaj Tubular trades in and supplies steel tubular products, infrastructure raw materials, iron and steel ingots and iron pipes.
Key terms
- Indicative proposed quantity: approximately 20,000 Metric Tonnes (MT) of TMT bars
- Term: 24 months from execution, unless extended or terminated earlier
- Management's estimate of broader commercial potential: approximately Rs. 250-300 crore over the 24-month period
- Either party may terminate on 30 days' prior written notice
- Governed by Indian law; jurisdiction at Ahmedabad, Gujarat
How binding is it
The company states clearly that the MOU records a broad commercial understanding and does not by itself create an unconditional or irrevocable purchase commitment by Bajaj Tubular, nor a corresponding supply obligation on Rhetan. The 20,000 MT figure is indicative. Actual supplies arise only on issuance and acceptance of individual purchase orders.
Price is not fixed in the MOU. Grades, sizes, specifications, delivery schedule, payment and freight terms will be agreed in each purchase order. The Rs. 250-300 crore figure is management's internal business-opportunity estimate, is not stated in the MOU itself, and is not a contracted order value, confirmed order book or assured revenue. The company notes actual business may be materially higher or lower.
What it could mean
Management views the arrangement as a way to widen its customer network, diversify sales channels and create potential for recurring purchase orders rather than a one-time transaction. Conversion into actual revenue depends on purchase orders, product mix, prices, market conditions and production availability. The company has said it will disclose any material purchase order or contract arising from this understanding.
More numbers
- Indicative proposed quantity of TMT bars20,000 Metric Tonnes (MT)
- Management estimate of broader commercial potential (lower end)250-300 crore
- MOU term24 months
- Termination notice period30 days'
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