Numerous companies are strategically entering trending sectors such as defence, semiconductors, and renewable energy, driven by increasing government investments and the demand for advanced technologies.
In the defence sector, significant investments are being made to enhance indigenous manufacturing capabilities, with a focus on modernizing production and expanding exports.
The semiconductor industry is also witnessing a surge in interest as companies aim to establish manufacturing hubs to meet global demand for chips, driven by advancements in technology and the push for self-sufficiency.
Meanwhile, the renewable energy sector is rapidly expanding, with firms investing in sustainable solutions to align with global climate goals and capitalize on government incentives aimed at increasing renewable capacity.
Listed below are such companies that forayed into sectors like defence, semiconductor and renewable energy:
Rama Steel Tubes Ltd
With a market capitalization of Rs. 2,247 crores, the shares of Steel Pipes and Tubes manufacturing company started Tuesday’s trading session on a flatter note at Rs. 14.95 compared to its previous close of Rs. 14.89.
During the trading session, the shares hit a low of Rs. 14.60, losing around 2 percent and closed the day at Rs. 14.84 apiece.
Also Read: Steel stock jumps 9% after company’s board to consider stock split and bonus issue
Looking at the company’s financial performance, the revenue decreased by around 19 percent from Rs. 268.27 crores during the March quarter to Rs. 216.64 crores in the June quarter. On the other hand, the net profits declined by 18 percent from Rs. 7.65 crores to Rs. 6.20 crores during the same timeframe.
On 4th September, Rama Steel Tubes announced a strategic collaboration with Onix Renewable Ltd., focusing on the development of green and renewable energy solutions, particularly in the solar energy sector.
This partnership aims to leverage Rama Steel Tubes’s expertise in providing high-quality steel structures and components, which are essential for solar projects. These include single-axis trackers that enhance the efficiency of solar panels.
With this expansion, the company is entering the Green Energy sector and is poised to create new revenue streams, especially as the demand for renewable energy solutions continues to rise.
Additionally, the company has also announced a significant expansion into the defence sector and has incorporated a wholly-owned subsidiary named Rama Defence Private Limited.
The new subsidiary will engage in a broad spectrum of activities within the defence sector, including trading, importing, exporting, manufacturing, assembling, and supplying defence equipment such as arms, ammunition, explosives, and other military and security hardware.
This move marks a strategic diversification for Rama Steel Tubes, as it ventures into a high-growth industry beyond its traditional steel tube manufacturing operations.
Tembo Global Industries Ltd
With a market capitalization of Rs. 517 crores, the shares of the fabricated metal products manufacturing company started Tuesday’s trading session on a higher note at Rs. 465.55, locking a 5 percent upper circuit compared to its previous close of Rs. 443 apiece.
Looking at the company’s financials, the revenue increased by around 6 percent from Rs. 121.65 crores during the March quarter to Rs. 128.41 crores in the June quarter. On the other hand, the net profits surged by 105 percent from Rs. 2.64 crores to Rs. 5.42 crores during the same timeframe.
Recently, Tembo Global Industries announced a significant strategic partnership with a leading European company to establish a state-of-the-art arms and ammunition manufacturing facility in India.
The newly signed Memorandum of Understanding (MoU) represents a major milestone for Tembo Global as it ventures into the defence manufacturing sector, backed by a well-established international partner.
The MoU outlines a comprehensive partnership wherein the European company will lend its expertise to assist in the establishment of the new manufacturing plant.
The agreement also includes a strategic buy-back arrangement, under which the European partner will purchase a significant portion of the firearms produced by Tembo Global Industries Limited.
Furthermore, the European company will provide crucial technical expertise and operational support, ensuring that the new manufacturing facility meets the highest standards in arms production.
IZMO Ltd
With a market capitalization of Rs. 628 crores, the shares of the IT company started Tuesday’s trading session on a lower note at Rs. 439, losing around 2 percent compared to its previous close of Rs. 447.95 and closed the day at Rs. 440.20 apiece.
Coming onto the company’s financial statements, the revenue decreased by around 5 percent from Rs. 50.29 crores during the March quarter to Rs. 47.58 crores in the June quarter. On the other hand, the net profits declined by around 33 percent from Rs. 9.04 crores to Rs. 6.03 crores during the same period.
Recently, Izmo Ltd, a leading provider of automotive software solutions, announced the launch of its new subsidiary Izmo Microsystems. This strategic move marks Izmo’s foray into the semiconductor industry, with a focus on cutting-edge semiconductor packaging and manufacturing.
Izmo Microsystems has established a state-of-the-art System-in-Package (SiP) manufacturing facility in Bangalore, India. This facility aims to strengthen India’s position in the global semiconductor supply chain by offering high-density, high-performance SiP solutions for various sectors.
Also Read: Pharma stock hits 10% upper circuit after company to expand its business in international market
Written By Vaibhav Patil
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