JTL Inds gains on receiving NCLT approval to commence operations at RCI plant

JTL Industries rose 2.18% to Rs 92.67 after the company was granted permission by the National Company Law Tribunal (NCLT) to commence operations at the RCI Industries & Technologies plant.

JTL has entered into a Memorandum of Understanding (MoU) with RCI for the production of up to 200 MT/month of copper and brass alloys via job work.

This highly value-accretive strategic acquisition aligns with JTL's goals to expand into new sectors, particularly defense supplies. As India focuses on self-reliance and indigenous manufacturing through initiatives like "Make in India," JTL recognized this acquisition as an opportunity to supply bullet casings and other non-ferrous metal products critical to the defense sector.

Once the transaction closure is approved by the NCLT, this plant will come under the complete ownership of JTL and is expected to significantly contribute to the topline by FY27.

Commenting on the development, the company's management said, We are pleased to announce the beginning of production at RCIs plant following approval from the honorable NCLT. This milestone will help us not only enter new segments but also gain new customers and relationships.

This high-value acquisition gives us an opportunity to enhance our footprint in the copper products market, leveraging RCI's manufacturing expertise. We look forward to new avenues of growth and the strong uptick this will provide us with in the future.

JTL Industries is among the fastest-growing steel tube manufacturers, and its registered office is in Chandigarh. The company has manufacturing facilities in Punjab, Maharashtra, and Chhattisgarh. Its product offering includes GI Pipes, MS Black Pipes, hollow sections, and solar structures, which cater to diverse industrial and infrastructural applications.

The company's consolidated net profit declined 17.36% to Rs 24.94 crore on a 20.44% fall in sales to Rs 451.43 crore in Q3 FY25 as compared with Q3 FY24.

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