The next time you are cruising at 100 kmph on an Indian highway, remember this: the only thing keeping your tyres from flying off your flashy metal rims is a thin, invisible circle of high-tensile steel. Yes, it is a part of your car, but you cannot see it and you will never replace it.
Yet, without it, every vehicle from a midsize family car to a Boeing 747, would be a useless piece of scrap. This invisible yet most important hero is called Bead Wire. Something most people driving a car might not even know about.
No matter what brand you go to for tyres, bead wire is not optional. It is called the “Tyre Skeleton” for a reason. Now to the most important part. What if you could find one company that is a leader in the bead wire space, so much so that it has over 50% market monopoly?
Rajratan Global Wire Ltd: The Leader with 50% Market Share
Rajratan Global Wire Ltd is engaged in the manufacturing of bead wire, a high-carbon steel wire utilized in the production of tires. Additionally, the company produces drawn steel wire, referred to as black wire, which is used in various industries such as automobile, construction, and engineering.
With a market cap of Rs 2,392 cr, the company has an international presence across the USA, Canada, the Czech Republic, Italy, Finland, Turkey, Sri Lanka, Bangladesh, Vietnam, Malaysia, Indonesia, South Korea, the Philippines, and Australia.
The company’s key customers include MRF Ltd, Apollo Tyres, CEAT Ltd, and Bridgestone Tyres in India, and it also has clientele in Thailand, such as Sumitomo Rubber (Thailand) Co. Ltd and Yokohama Tire.
What is it that helps the company maintain its leadership position? To understand that you must know about what exactly a Tyre Skeleton is and why is it so difficult for competition to sustain in the industry.
The Bead Wire Moat: Anatomy of the ‘Tyre Skeleton’
While we often think of tyres as just rubber, they are an engineering marvel. In fact, a very complex composite structure, at the very edge of which is a part that grips the metal wheel rim and ensures the tyre does not fly off when you speed or even drive.
This is called the bead. And inside this bead is a coil of high-carbon, bronze-coated steel wire. This bead wire is the “skeleton” of the tyre. It provides the structural integrity to withstand the massive internal air pressure and the external centrifugal forces of high-speed rotation. If the bead wire fails, the tyre detaches. Because the stakes are so high, literally life and death, tyre manufacturers do not “shop around” for the cheapest wire. They look for absolute reliability.
This is where Rajratan Global Wire has established itself as a leader. As the largest manufacturer of bead wire in India, the company commands over 50% of the domestic market share. In simple terms, there is a one-in-two chance that the car you are driving today is running on Rajratan’s bead wires.
But not every steel manufacturing company can take up manufacturing this unavoidable auto part.
The Decade-Long Gauntlet: High Stakes and Safety Standards
Why doesn’t every steel maker jump into the bead wire business? The answer lies in the approval Cycle. Bead wire is what we can call a safety Item that ranks third in OEM safety standards.
When a tyre company like Michelin or Apollo Tyres selects a bead wire supplier, the testing process can take anywhere from 3 to 10 years. The wire must undergo rigorous testing for tensile strength, bronze-coating adhesion, and fatigue resistance. Once a supplier is approved and integrated into a premium tyre line, the cost to switch to another manufacturer is huge. Not to forget the grind of the long approval process.
Rajratan has already cleared these hurdles with almost every major global tyre brand. This creates a formidable entry barrier that protects its margins even when commodity steel prices fluctuate.
But that is not the only strength of the company. There is something which in hindsight now seems like a masterstroke.
The ‘Detroit of Asia’ Play: A Geographic Masterstroke
Rajratan’s most significant competitive advantage isn’t just what it makes, but where it makes it. In 2006, the company made a contrarian bet by setting up a plant in Thailand. At the time, it was a bold move for a mid-sized Indian firm. But in hindsight today, it looks like a stroke of genius.
You see, Thailand is called the “Detroit of Asia” for the tyre industry. It is the world’s largest producer of natural rubber, making it a preferred destination for global giants like Bridgestone, Michelin, and Goodyear. By being the only manufacturer of bead wire in Thailand, Rajratan enjoys a localized monopoly.
And there are some logistics advantages that are unmissable…
- Zero Import Duties: By producing locally, Rajratan avoids the heavy duties that competitors from India or China would face.
- Proximity: Its plant is located in Ratchaburi, within striking distance of major tyre factories. This allows for precise and timely delivery, a critical requirement for modern manufacturing.
- Raw Material Access: Thailand’s status as a rubber hub ensures that tyre production there is resilient, providing a steady, recession-resistant demand for Rajratan’s wire.
Growth Tempered by Margin Volatility
Let us look at the financials of the company to see how this king of bead wires shows all the signs of a company that has graduated from a high-capex growth phase into an operational efficiency phase.
The sales for the company grew from Rs 490 cr in FY20 to Rs 935 cr in FY25, logging a compound growth of 14% in 5 years. For H1FY26, the company has logged sales of Rs 541 cr already.
The EBITDA (earnings before interest, taxes, depreciation, and amortization) went from Rs 68 cr to Rs 127 cr in the same period, marking a compound growth of 13%. And for H1FY26, EBITDA of Rs 71 cr has been recorded.
The net profits have seen a bit of a bumpy ride but have grown at a compound rate of 12% in the last 5 years.
| FY | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| Net Profit (Rs Cr) | 33 | 53 | 124 | 100 | 72 | 59 |
For H1FY26, the company has logged net profits of Rs 35 cr.
While the 5-year profit CAGR stands at 12%, a closer look at the table reveals a dip from the FY22 peak of Rs 124 cr to Rs 59 cr in FY25. This scenario where sales hit record highs while profits contract, is a classic case of margin pressure.
You see, Rajratan relies on high-carbon wire rods, and while they can pass on costs to buyers, sudden spikes in global steel prices often lead to short-term margin contraction. Also, the company has been in a high-capex phase, recently commissioning a massive new plant in Chennai and expanding in Thailand. These growth pains including higher depreciation and interest costs could temporarily mask the company’s underlying earning power.
Delivering 5x Return in 5 Years
The share price of Rajratan Global Wire Ltd was around Rs 86 in December 2020, and as of closing on 24th December 2025 it was Rs 472. That is a jump of 450% in 5 years. Rs 1 lakh invested on the stock 5 years ago would have been over Rs 5.5 lakhs today.
What makes this company interesting today is that at the current price of Rs 472, the stock is trading at a discount of almost 67% from its all-time high price of Rs 1,410.
As for valuation, the company’s share is trading at a PE of 41x and the current industry median is 31x, which means that currently buyers are willing to pay a premium to hold a piece of the pie.
Time For a Long Drive with Rajratan?
For investors, Rajratan represents a pick and shovel play on the global automotive boom. While electric vehicle (EV) manufacturers battle for dominance and traditional OEMs face cyclical downturns, one thing remains constant: every vehicle needs tyres. And every tyre needs bead wire.
Rajratan Global Wire stands out as the boring, essential, and highly specialized stock that smart investors are always on the prowl for. It doesn’t make the car, the engine, or even the rubber. It makes the tiny, steel skeleton that holds it all together.
As India moves toward becoming a global automotive export hub and Thailand continues to dominate the rubber industry, Rajratan sits at the intersection of two massive growth engines. For those who believe in the future of mobility, the “skeleton maker” is a company you simply cannot ignore, because on the road to the future, you literally cannot drive without them.
Note: We have relied on data from www.Screener.in and www.trendlyne.com throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
Disclaimer:
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Suhel Khan has been a passionate follower of the markets for over a decade. During this period, He was an integral part of a leading Equity Research organisation based in Mumbai as the Head of Sales & Marketing. Presently, he is spending most of his time dissecting the investments and strategies of the Super Investors of India.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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