JTL Industries Gains Momentum With Commencement of Operations At RCI Plant

JTL Industries Limited saw a greater than 2% uptick on Friday after announcing the Baddi plant of RCI Industries & Technologies Limited is operational.

Positive market reaction stems from the relayed information by JTL Industries that the National Company Law Tribunal (NCLT) approved the RCI facility in Baddi to go ahead and commence. This event follows a strategically drafted MOU between JTL and RCI where they settle on producing up to 200 MT of copper and brass alloys by means of job-work per month.

The RCI plant is located on a 27,000 square meter plot of land with an installed capacity for copper and brass strips at 15000 metric tons per annum (MTPA) and up to 6000 MTPA of value-added products, depending on market demand.

JTL Industries considers this strategic move as an immensely valuable addition as it seeks to diversify to new areas such as defence supplies. The company noted that this acquisition is important considering the focus India is giving towards achieving self-sufficiency in manufacturing through the Make in India program.

"This strategic acquisition is in alignment with JTL's vision of growing into other areas such as defense supplies. With the increasing need for non-ferrous metal products like bullet casings, this puts JTL in a position to take advantage of the emerging market," the company quoted in a statement on the stock exchange.

JTL Industries' management has pointed out the far-reaching consequences of this acquisition, arguing that, "This milestone enables us to enter new markets and also create important customer partnerships. We are trying to gain usage of RCI's experience in manufacturing to expand our reach in copper products. We are very positive about the growth this acquisition is going to bring to the company."

JTL Industries will hold full ownership of the RCI plant and is expected to reap the benefits in terms of revenue by FY27 after the final approval from NCLT is received.
JTL Industries' market capitalization stands at ₹3,875 crore. In addition, the company reported a net sale of ₹479.55 crore, serving a net profit of ₹26.36 crore in Q2FY25, accounting for a decrease from ₹502.10 crore in net sales along with ₹27.91 crore in Q2FY24 net profit figures.

During the six-month period closing in FY25, the company declared net sales of ₹994.93 crore and served a net profit of ₹57.06 crore, which slightly declined from ₹1,006.90 crore in H1FY24. However, net profit increased from ₹53.29 crore in H1FY24 indicating strong profitability.

In FY24's annual report, JTL Industries declared net sales adding up to ₹2,040.43 crore along with a net profit of ₹113.01 crore. As of December 31, 2024, the promoter holding pattern reveals 48.91% with public shareholders owning the remaining 51.09%, which includes a 5% stake from Foreign Portfolio investors.

JTL Industries Limited is among the most rapidly developing manufacturers of steel tubes in India and is located in Chandigarh. The company has pipe manufacturing facilities in Punjab, Maharashtra, and Chhattisgarh with a total manufacturing capacity of 6,86,000 MTPA. Apart from being acclaimed as a Star Export House, JTL also produces pipes, including GI pipes, MS black pipes, hollow sections, and solar structures which serve major industrial and infrastructural purposes.

The acquisition of the RCI plant also supports JTL's growth and diversification strategy with a focus on the defense industry. JTL Industries stands to gain from greater manufacturing capabilities and an increased product range and continue its growth as the foremost company in the Indian metal and alloy market.