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.

JTL Industries Limited has successfully completed its acquisition of RCI Industries & Technologies Limited following the allotment of equity shares and handover by the Monitoring Committee. This strategic acquisition strengthens JTL's position in the non-ferrous metal sector through the NCLT-approved resolution plan.

Acquisition Completion Details

About RCI Industries

RCI Industries & Technologies Limited, incorporated on January 7, 1992, is a BSE-listed company specializing in manufacturing diversified copper, brass, aluminum, stainless steel, and special alloy products. The company operates manufacturing facilities in Baddi and Nalagarh, Himachal Pradesh, with a combined capacity exceeding 22,000 MTPA for copper and brass products.

Production Capabilities

Financial Performance Context

RCI Industries faced significant financial distress leading to the Corporate Insolvency Resolution Process (CIRP) initiated in November 2022. The company's recent financial performance shows:

Strategic Benefits

This acquisition enables JTL Industries to:

1. Portfolio Diversification: Broaden product range with flat and round non-ferrous metal products, particularly copper
2. Market Expansion: Strengthen market position in the non-ferrous sector
3. Industrial Coverage: Meet wider range of industrial demands across automotive, engineering, electrical, defense, and construction sectors
4. Global Reach: Access established customer networks in Middle East and African markets

Resolution Plan Implementation

The acquisition was completed through a resolution plan approved by the National Company Law Tribunal, New Delhi. Post-approval, the target company was successfully handed over to JTL Industries by the Monitoring Committee, marking the completion of the acquisition process under the Insolvency and Bankruptcy Code framework.