JTL Industries Ltd announces strategic acquisition of Nabha Steels and Metals

JTL Industries Limited ("JTL" or "The Company") is a fast-growing dynamic steel tube manufacturing company that specializes in producing Black Steel Pipes, Pre-Galvanized and Galvanized Steel Pipes, large-diameter steel tubes and pipes, and hollow structures.

JTL Industries has strategically acquired a controlling stake of 67% in Nabha Steels and Metals, situated in Mandi Gobindgarh, Punjab. This grants JTL ownership of an advanced steel product manufacturing facility.

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.

Nabha Steels and Metals has showcased tremendous revenue growth, increasing from ~Rs. 113 Crores in FY23 to ~Rs. 225 Crores in FY24.

This acquisition will increase JTL's total backward integration capacity from 150,000 tonnes of coils (previously concentrated solely from the Raipur plant) to 250,000 tonnes of coils and 100,000 tonnes of long products, with backward integrated operations now spanning across Chhattisgarh and Punjab.

Commenting on the development, the management team of JTL Industries stated: "We are excited to share our strategic milestone of acquiring 67% controlling interest in Nabha Steels & Metals in Mandi Gobindgarh, Punjab. This acquisition represents a significant milestone in our strategic plan, emphasising our dedication to strengthening our market presence and achieving sustainable growth. It signifies an essential stride in our continuous commitment to evolving into a comprehensive building materials solutions provider.

By integrating this new facility into our operations, we have significantly strengthened our backward integration capabilities, doubling our capacity from 150,000 tonnes of coils to 250,000 tonnes of coils and 100,000 tonnes of long products across Raipur and Punjab. This expanded integration not only enhances our operational efficiency but also fortifies our supply chain resilience, ensuring greater control of our raw materials and subsequent cost management efforts, which would, in turn, yield better margins while upholding our steadfast dedication to quality.

This plant also expands our product portfolio, particularly in steel products such as coils, billets and other long products. This diversification enhances our ability to meet the evolving needs of our clients, providing a broader range of solutions and solidifying our position as a preferred partner in the industry. Moreover, it allows us to explore new market segments, tapping into previously untapped opportunities and extending our reach into emerging complementary markets.

We are pleased to highlight that the acquired plant has demonstrated significant revenue growth, further validating the strategic rationale behind this acquisition. This growth underscores the potential synergies between our operations and positions us for accelerated expansion and value creation in the years ahead.

In summary, acquiring this plant represents a strategic milestone for JTL, reinforcing our commitment to driving sustainable growth and delivering value to our stakeholders. We are confident that this integration will strengthen our competitive position and enable us to seize new opportunities and chart a path toward long-term success."

Source : Equity Bulls

Keywords

JTLIndustries StrategicAcquisition NabhaSteelsandMetals