Insight

Ratnaveer Precision Engineering Ltd has set a bold vision to affirm its position as a global supplier of stainless steel components, with a strategic capital expenditure plan of approximately US$12.7 million (€11.1 million) for the expansion of its core product line, as well as to ensure the business is well prepared for the Carbon Border Adjustment Mechanism (CBAM) regulation’s definitive phase. 

With roots in manufacturing stainless steel washers for a variety of industries, including automotive, construction, industrial manufacturing, marine and aerospace, among others, the Indian-based Ratnaveer has grown its portfolio to encompass finishing sheets and solar mounting hooks, with its new investment plan focusing on expanding the company’s core product line even further to include tubes and pipes, whilst also marking its entry into the nut and bolt segment of the fastener industry.

As part of this plan, investments include reducing carbon intensive processes to enable Ratnaveer to be ‘CBAM ready’, as well as the installation of solar energy infrastructure to reduce operational costs and carbon emissions. This 2MW rooftop solar project and 2MW ground mounted project lower reliance on conventional energy and significantly reduce Ratnaveer’s Scope 2 emissions. 

“Our business is well prepared for the definitive phase of CBAM,” comments Vijay Sanghavi, managing director at Ratnaveer. “Since the CBAM transitional phase began in October 2023, we’ve been diligently reporting the Specific Embedded Emissions (SEE) of our products, aligning with the EU’s requirements. This proactive approach has allowed us to gain a comprehensive understanding of CBAM obligations and integrate the necessary processes into our operations.”

Vijay adds: “CBAM isn’t meant to hinder trade but to accelerate the shift toward sustainable manufacturing. It may impact sourcing, especially from high emission regions, but it also creates opportunities. Suppliers such as Ratnaveer – with transparent reporting and greener processes – will become the preferred partners, positioning proactive companies to lead, not just comply. As carbon accountability becomes vital in supply chains, early adopters of low carbon practices will gain a competitive edge.”  

These practices include partnering with a specialised company that uses EU compliant software to analyse emissions data. Vijay highlights: “Many of our EU customers provide specific guidelines and datasheet formats for calculating product emissions. To meet these requirements, we’ve partnered with a specialist, giving our customers consistency, traceability and full alignment with regulatory expectations throughout the supply chain.”

Although confident that it is CBAM compliant, there are still areas in the complicated downstream supply chain of fasteners that Ratnaveer believes need clarification. “One such area is the treatment of products that combine steel with materials not currently covered under CBAM. The methodology for calculating SEE in these cases remains uncertain,” comments Vijay.  

With the scope of CBAM expected to expand in the coming years, Ratnaveer is prepared to adapt in order to remain compliant and competitive. Vijay outlines: “Environmental accountability is no longer optional – it’s becoming a central expectation in both domestic and international markets. We are actively exploring further investments aligned with CBAM and broader sustainability goals and, as the regulatory landscape evolves, we remain committed to enhancing our environmental initiatives and integrating cleaner, more efficient practices across our operations.”