JTL Industries Limited , a prominent steel tube manufacturer, has announced a significant expansion of its non-ferrous product line with the introduction of Continuous Cast (CC) Copper. This strategic move is set to double the company's production capacity and cater to high-growth sectors such as electric vehicles and renewable energy.

Production Capacity Boost

JTL Industries, known for its steel tube manufacturing, is making strides in the non-ferrous segment. The company has outlined an ambitious plan to scale up its production:

The introduction of CC Copper is expected to immediately double the company's monthly production from the current 100 metric tonnes to approximately 200 metric tonnes.

Technical Advancements

The new CC Copper product brings technical improvements that could give JTL Industries an edge in precision manufacturing:

• Thickness Achievement: CC Copper can achieve a thickness of 0.08 mm
• Existing Brass Products: Manufactured at 18 mm thickness, processed down to 0.04 mm

This advancement in thickness precision opens up new possibilities for applications requiring high conductivity and exactitude.

Target Sectors

JTL Industries is positioning its CC Copper product to serve several high-growth sectors:

1. Electric Vehicles (EVs): Applications in battery connectors, busbars, and motor windings
2. Renewable Energy: Used in solar panels, inverters, and wind turbine components
3. Infrastructure & Power Distribution: Applied in wiring, switchgear, and earthing applications

These sectors are at the forefront of technological advancement and sustainable development, potentially providing JTL Industries with robust demand for its new product.

Strategic Implications

The expansion into CC Copper production aligns with JTL Industries' focus on high-margin, technology-driven offerings. This move could strengthen the company's position in the non-ferrous market and diversify its revenue streams beyond its core steel tube business.

JTL Industries, with manufacturing facilities in Punjab, Maharashtra, and Chhattisgarh, boasts a cumulative capacity of approximately 936,000 MTPA for pipe manufacturing. As a recognized "Three Star Export House," the company's strategic expansion into the non-ferrous segment with CC Copper could potentially enhance its export capabilities and market reach.

As JTL Industries ramps up production to meet its target of 500 metric tonnes per month by the end of Q4, investors and industry observers will be keen to see how this expansion impacts the company's market position and financial performance in the coming quarters.

JTL Industries Limited , a fast-growing steel tube manufacturing company, has received approval from the National Company Law Tribunal (NCLT) in New Delhi for the acquisition of RCI Industries & Technologies Limited through a resolution process. This strategic move marks JTL's entry into the high-potential copper and non-ferrous metals segment, diversifying its product portfolio and expanding its market reach.

Key Highlights of the Acquisition

• Transaction Value: Rs 46.50 crores, fully funded through internal accruals and recently raised capital
• Acquisition Method: Through NCLT-approved resolution plan under the Insolvency and Bankruptcy Code (IBC), 2016
• RCI's Manufacturing Capacity:
  • Location: Baddi, Himachal Pradesh
  • Plant Area: 27,000 sq. meters
  • Installed Capacity:

    Product	Capacity (MTPA)
    Brass & Copper Strips	18,000
    Copper Wires	2,000
    Copper Cables	2,000

Strategic Rationale and Future Outlook

The acquisition of RCI Industries is expected to bring several strategic benefits to JTL Industries:

1. Product Diversification: Entry into copper and non-ferrous metals sector, reducing dependence on cyclical steel prices
2. New Market Access: Opportunity to serve defense components market and supply bullet shells and coin-related components to Mint Factory
3. Expanded Client Base: Access to RCI's diverse client portfolio, including Havells, Technocraft Industries, Finolex, and KDDL Ltd.
4. Financial Impact: Management expects significant contribution to topline by FY27
5. Operational Synergy: Leveraging JTL's B2B and export networks for RCI's products

Management Commentary

The management of JTL Industries stated, "The acquisition of RCI Industries & Technologies Ltd. is a strategically important step in JTL's evolution. It offers us an immediate and well-structured entry into the high-potential copper and non-ferrous metals segment—sectors witnessing rising demand from infrastructure, electrical, and defence applications."

They further added, "Secured at an attractive valuation through the NCLT process, the transaction is fully funded through internal accruals and recently raised capital, reflecting our strong balance sheet and prudent financial strategy. We expect this acquisition to significantly augment our topline and earnings by FY27."

Future Plans for RCI Industries

Under JTL's leadership, the company plans to scale and modernize RCI Industries with a future-forward strategy:

• Capital infusion and professional management
• Capacity expansion and technological upgrades
• Product portfolio integration
• Operational synergies across procurement, logistics, and processing
• R&D-driven innovation focusing on EVs, renewables, and defense applications

This acquisition positions JTL Industries for growth in new sectors, particularly in defense supplies, aligning with India's focus on indigenous manufacturing through initiatives like "Make in India."

As JTL Industries integrates RCI's operations and expands its product offerings, investors and industry observers will be keenly watching the company's performance in the coming quarters, especially as it aims to realize significant topline growth by FY27.