Chandigarh-based JTL Industries, a prominent manufacturer of various grades of galvanised steel tubes and pipes, is set to undergo a significant capacity expansion. As part of an ongoing Rs 330-crore capital expenditure plan, the company will add 2 lakh tonnes to its existing 6 lakh tonne capacity. The expansion will take place at two of its mills, with an immediate enhancement of 1 lakh tonne each at the Malegaon plant in Maharashtra and the Raipur mill in Chhattisgarh. This strategic investment will contribute to the company’s target of achieving a total installed capacity of 10 lakh tonnes by the fiscal year 2026-27.
Expansion Plans and Funding:
According to a company official, JTL Industries aims to expand its overall capacity by 4 lakh tonnes through a Rs 330-crore capex. The ongoing investment will be completed by FY27 and will be fully funded by the Rs 384 crore raised from a preferential warrants issue in March. This debt-free investment demonstrates the company’s prudent financial management and long-standing commitment to maintaining a strong financial position.
Enhanced Production and Output:
With the immediate capacity addition of 1 lakh tonne at the Malegaon plant in Maharashtra and the Raipur mill in Chhattisgarh, the overall output of these facilities will increase to 3 lakh tonnes each. The expansion is a testament to JTL Industries’ vision of meeting the growing demand for galvanised steel tubes and pipes in various industries, including infrastructure, construction, and automotive sectors.
Company Overview and Growth:
JTL Industries, established in the 1990s, has achieved significant success and growth over the years. The company currently operates four mills located in Malegaon, Raipur, Mandi, and Derahbasi in Punjab. These mills have a combined installed capacity of 5.84 lakh tonnes, with an addition of 84,000 tonnes in the 2022-23 fiscal year. The expansion plans will further strengthen JTL Industries’ market position and allow it to cater to a wider customer base.
The capacity expansion of JTL Industries aligns with the projected growth in demand for galvanised steel tubes and pipes. The infrastructure development initiatives, construction projects, and the overall economic growth in India provide favorable conditions for the company to capitalize on the expanding market opportunities. By enhancing its production capabilities, JTL Industries aims to consolidate its position as a leading player in the steel tube and pipe manufacturing sector.
JTL Industries has built a reputation for delivering high-quality galvanised steel tubes and pipes. With a focus on innovation, technology adoption, and stringent quality control measures, the company ensures that its products meet industry standards and customer expectations. The capacity expansion will enable JTL Industries to serve its customers more effectively, providing them with reliable and durable steel tube solutions.
JTL Industries’ ongoing capacity expansion project reflects its commitment to meeting the increasing demand for galvanised steel tubes and pipes in the market. The strategic investment of Rs 330 crore will add 2 lakh tonnes to its existing 6 lakh tonne capacity, taking its total installed capacity to 10 lakh tonnes by FY27. This debt-free investment, funded by a successful preferential warrants issue, highlights the company’s strong financial position and prudent management. With enhanced production capabilities and a focus on delivering quality products, JTL Industries is poised to capitalize on the growing opportunities in the steel tube and pipe manufacturing sector, solidifying its position as a leading player in the industry.
