JTL Industries enters into MOU with RCI

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

JTL Industries is pleased to announce that we have entered in an MOU with RCI Industries & Technologies Limited (RCI) wherein they will produce up to 200 MT/month of copper and brass alloys on a job-work basis.

RCI Industries & Technologies Limited, founded in 1992, is a listed entity with a market capitalization of Rs. 9 crores. The company's manufacturing plant in Baddi, Himachal Pradesh spans 27,000 sq. meters, boasting an installed capacity of 15,000 MTPA for copper and brass strips. Of this, up to 6,000 MTPA can be dedicated to the production of value-added products as per demand.

This highly value-accretive strategic acquisition was entered into considering JTL's goals to expand across new sectors, particularly defense supplies. As India is focused on self-reliance and indigenous manufacturing through initiatives like "Make in India," JTL recognized the 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 be under complete ownership of JTL and is expected to significantly contribute to the topline by FY27.

Commenting on the above development, the management of the Company said: "This MOU between JTL and RCI marks a milestone which will help us in not only entering new segments but also in gaining 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 that this will provide us with in future."

Source : Equity Bulls

Keywords

JTLIndustries MOU RCIIndustriesandTechnologies