Forgings stock engaged in manufacturing and supplying steel tubes, pipes, and allied Products jumped 2 percent in the day’s trade following the strategic acquisition of an advanced steel product manufacturing facility for Rs. 67 Crores.
With a market capitalization of Rs. 3,736 Crores, the shares of JTL Industries Limited were trading at Rs. 217.80, up 0.72 percent from its previous day’s close price of Rs. 216.25.
JTL Industries has strategically acquired a majority stake of 67 percent in Nabha Steels and Metals, situated in Mandi Gobindgarh, Punjab for Rs. 70 Crores. This grants JTL ownership of an advanced steel product manufacturing facility.
JTL Industries Limited is an integrated manufacturer and supplier of steel tubes, pipes, and allied products, the product offerings include Black Steel Pipes, Electric Resistance Welding (ERW) pipes, galvanized pipes, solar structures, hollow structures, and many more.
The newly acquired plant has a manufacturing capacity of 200,000 tonnes and focuses on producing steel products such as coils and long steel products such as billets.
This acquisition will increase the Company’s total backward integration capacity from 150,000 tonnes of coils to 2,50,000 tonnes of coils and 1,00,000 tonnes of long products, with backward integrated operations now spanning across Chhattisgarh and Punjab
This expanded integration not only enhances operational efficiency but also fortifies the supply chain resilience, ensuring greater control of raw materials and subsequent cost management efforts, which would, in turn, yield better margins while upholding steadfast dedication to quality
JTL has a pan-India presence and a diverse geographic footprint, providing products to over 20 nations in 5 continents, with over 800+ retailers & distributors and 1000+ SKUs.
It has a strong customer base with well-known clients such as Tata Power, Sterling and Wilson, Indian Oil Corporation, L&T, Power Grid, IGL, and many more.
Its revenue from operations grew by 65.30 percent from Rs. 343 Crores in Q3FY23 to Rs. 567 Crores in Q4FY24, accompanied by profits of Rs. 20 Crores to Rs. 30 Crores.
Written by: Bharath K.S
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