JTL Inds acquires controlling stake in Punjab-based Nabha Steels

JTL Industries said that it has acquired a controlling stake of 67% in Nabha Steels and Metals, situated in Mandi Gobindgarh, Punjab.

Nabha Steels and Metals is engaged in the manufacturing of Steel Products such as coils and long steel products such as billets having a manufacturing capacity of 2,00,000 tonnes. The companys provisional turnover for FY24 is Rs 225.27 crore.

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.

The said stake in Nabha Steels has been acquired by JTL for a cash consideration of Rs 70 crore.

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.

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 plant also expands our product portfolio, particularly in steel products such as coils, billets and other long products. Moreover, it allows us to explore new market segments, tapping into previously untapped opportunities and extending our reach into emerging complementary markets.

JTL Industries is one of the fastest-growing steel tube manufacturers, with manufacturing facilities in Punjab, Maharashtra, and Chhattisgarh. The company's cumulative capacity is 6,86,000 MTPA, offering a diverse product range including GI pipes, MS Black pipes, hollow sections, and solar structures, catering to various industrial and infrastructural applications.

The company had reported 47.22% rise in consolidated net profit to Rs 30.18 crore on a 65.26% increase in revenue from operations to Rs 567.39 crore in Q3 FY24 as compared with Q3 FY23.

The scrip rose 0.55% to currently trade at Rs 217.45 on the BSE.

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