JTL Industries to add 2MT capacity by Dec as part of Rs 330 cr capex

Chandigarh-based JTL Industries, which manufactures various grades of galvanized steel pipes and tubes, is adding 2,000 tons to its existing capacity of 6,000 tons as part of its current capex of Rs. 330 crore at two of its plants.

A company official told PTI here on Monday that the total capacity expansion of 4 lakh tons worth Rs 330 crore will be completed by FY27, which will bring its total installed capacity to 10 lakh tons. at the Malegaon plant in Maharashtra and the Raipur mill in Chhattisgarh, which will bring its total production to 3 lakh tons each.

This is a completely debt free investment as the company that was founded in the 90’s has long been debt free. The expansion was funded entirely by the Rs 384 crore earned from the issuance of preferential orders in March, Dhruv Singla, CEO and CFO, who is also the son of managing director Madan Mohan Singla, told PTI.

Another CEO, Pranav Singla, said the company has four plants, Malegaon, Raipur, Mandi and Dirhbasi in Punjab, with a production capacity of 5.84 thousand tons, of which 84 thousand tons were added in 2022-23.

They said half of the company’s revenue came from domestic retail sales, 15 percent from exports, a similar amount from government orders, and 10 percent each from OEMs and solar power plants. The company generated revenue of Rs. 1,550 crore in its latest financial balance sheet from which it earned an industry-leading 8 per cent net margin.

They expect exports to jump up to 20 percent this fiscal year as it is about to enter the North American market after the introduction of DFT (Direct Forming Technology) products.

They said the plants are running at about 60 percent capacity utilization, which is a little more than the industry average and will continue to operate at the same level or a little more, but will have a larger volume as the additional capacity will be by 2,000 tons. Soon, the total annual output was taken at around 3 thousand tons, from 2.4 thousand tons in the last fiscal year.

On the revenue forecast, they said they usually have a three-month order book but now it’s running at four months worth of over Rs 350 crore which should help them grow the product line by around 35 per cent more this year.

As part of the expansion, they said, the company is working to boost the contribution of value-added products to more than 50 percent of total sales over the next two years.

The company serves industries across building materials, construction, basic infrastructure, power, engineering, heavy vehicles, agriculture, water and gas distribution, and solar energy projects.