JTL Industries unveils plans for 3 Lakh MTPA ASTM/API-Grade ERW Line - Expansion to Unlock ₹7,000+ Margins and 500+ SKUs

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

JTL Industries is pleased to announce a significant capacity expansion initiative with the planned commissioning of a new Electric Resistance Welded (ERW) pipe manufacturing line, specifically targeted to serve the ASTM/API-grade pipe market.

The new line will enable JTL to manufacture pipes in the following specifications:

- Round pipes: 6" to 20" (168 mm OD to 508 mm OD)
- Square sections: 130 mm x 130 mm to 400 mm x 400 mm
- Rectangular sections: 100 mm x 160 mm to 300 mm x 500 mm
- Thickness range: 4 mm to 16 mm

This facility will add a substantial annual capacity of 3,00,000 MTPA, strengthening JTL's position in the value-added and high-strength steel pipe segments. The new line is scheduled to be fully installed and operational within 12 months.

Commenting on the development, the management of JTL Industries stated: "This strategic investment reflects our commitment to diversifying our product portfolio and expanding our footprint in high-grade segments such as oil & gas, water transmission, and city gas distribution (CGD) - markets that typically yield superior EBITDA margins of ₹7,000 to ₹8,000 per metric tonne, making this expansion significantly value-accretive. Our entry into higher-thickness, API-compliant products is a natural evolution as we scale both our technical depth and strategic reach.

With this development, JTL will become one of the very few manufacturers in India with the capability to produce large-diameter, high-thickness API-grade ERW pipes-placing us in an exclusive league of technically advanced players. The new line will enable us to offer over 500 SKUs, vastly improving our ability to meet complex and customised infrastructure requirements across industries.

Backed by a deeply entrenched distribution network and a proven execution track record, we are confident of scaling this segment efficiently upon commissioning. This move firmly positions JTL as a credible, futureready force in the API-grade pipe market, both domestically and in select global geographies."

Source : Equity Bulls

Keywords

JTLIndustries CapacityExpansion ERW PipeManufacturingLine