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 received a significant boost in its expansion plans with the National Company Law Tribunal (NCLT), New Delhi, approving its resolution plan to acquire RCI Industries & Technologies Limited. This strategic move is set to strengthen JTL's position in the non-ferrous metal sector.

Key Acquisition Details

About RCI Industries

RCI Industries & Technologies Limited, incorporated in 1992, is a BSE-listed company specializing in the manufacture of diversified copper, brass, aluminum, stainless steel, and special alloy products. The company's manufacturing facility is located in Baddi, Himachal Pradesh, spanning over 27,000 square meters.

Production Capacity

Strategic Implications

This acquisition is a strategic move for JTL Industries, allowing it to:

1. Broaden its portfolio with flat and round non-ferrous metal products, particularly copper
2. Strengthen its market position in the non-ferrous sector
3. Meet a wider range of industrial demands

Financial Context

It's worth noting that RCI's turnover has seen a significant decline over recent years:

This substantial decrease in turnover might have contributed to the attractive valuation of RCI's assets, presenting a high-value acquisition opportunity for JTL Industries.

Conclusion

The acquisition of RCI Industries & Technologies Limited marks a significant step for JTL Industries in expanding its product range and market presence. As the company moves forward with this strategic acquisition, it will be interesting to observe how JTL leverages RCI's assets and capabilities to strengthen its position in the non-ferrous metal sector.