JTL Engineering to Invest ₹15 Crore to Double HR Coil Capacity

CHANDIGARH, India — Steel manufacturer JTL Industries Limited (BSE: 534600 | NSE: JTLIND) announced on Monday that its subsidiary, JTL Engineering Limited, will undertake a capital expenditure (capex) of approximately ₹15 crore (150 million Indian rupees) to expand its narrow-width Hot Rolled (HR) coil manufacturing capacity.

The primary purpose of the strategic initiative is to meet growing industrial demand and increase operational processing capabilities. The facility expansion will double JTL Engineering's monthly HR coil manufacturing capacity from 5,000 metric tonnes (MT) to 10,000 MT per month. The expanded facility is scheduled to be fully commissioned in the fourth quarter of the 2027 fiscal year (Q4 FY27).

Technical Enhancements and Sustainable Manufacturing

Alongside the volume expansion, JTL Engineering will expand its technical production capabilities. The investment will increase the maximum width of the narrow-width HR coils produced at the facility from 9 inches (228.6 mm) to 11 inches (279.4 mm).

The additional width threshold will allow the company to broaden its portfolio of narrow-width HR coils, addressing a wider range of customized product specifications for industrial and commercial clients.

The manufacturing setup relies on sustainable raw material processing. The production cycle charges sponge iron and steel scrap into induction furnaces at temperatures around 1,600°C. The molten steel undergoes continuous casting via direct rolling into a narrow-width strip format, followed by hot rolling, coiling, and customer-specific slitting or trimming.

By using steel scrap, JTL Engineering aims to lower reliance on virgin raw materials, support resource efficiency, and align with circular economy recycling practices.

Official Sources

The capital expenditure decision was officially reported through regulatory filings submitted under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, to the BSE Limited and the National Stock Exchange of India Ltd on August 24, 2026.

Leadership Commentary

Commenting on the expansion project, Mr. Madan Mohan, Managing Director of JTL Industries Limited, stated:

"The proposed expansion reflects our focus on strengthening JTL Engineering Limited's manufacturing capabilities and expanding the range of products that we can offer. The additional capacity and wider coil capability will enable us to cater to a broader range of product specifications and customer requirements."

Why It Matters

The capacity doubling directly strengthens JTL Industries' operational foundation. With cumulative pipe manufacturing capacity standing at approximately 936,000 MTPA—including around 300,000 MTPA allocated to backward integration—this ₹15 crore investment ensures an enhanced supply of internal raw materials for downstream applications.

For commercial clients, investors, and industrial consumers, the increased width range of up to 11 inches allows for greater flexibility across structural engineering, piping, and infrastructure uses.

Key Facts at a Glance

• Investment Value: ₹15 crore (~150 million INR) capital expenditure.

• Capacity Enhancement: Expansion from 5,000 MT per month to 10,000 MT per month.

• Width Upgrade: Maximum coil width increases from 9 inches (228.6 mm) to 11 inches (279.4 mm).

• Target Timeline: Commissioning expected in Q4 FY27.

• Raw Material Process: Utilizes sponge iron and steel scrap via induction melting and continuous casting.

Frequently Asked Questions

What is JTL Engineering Limited investing in?

JTL Engineering Limited is investing approximately ₹15 crore to expand its narrow-width Hot Rolled (HR) coil manufacturing facility.

How much will the production capacity increase?

The unit's narrow-width HR coil production capacity will double from 5,000 MT per month to 10,000 MT per month.

When will the expanded capacity become operational?

According to official company announcements, the expanded facility is scheduled to be commissioned in Q4 FY27.

What primary technical enhancement is included in the project?

The expansion increases the maximum manufacture-able coil width from 9 inches (228.6 mm) to 11 inches (279.4 mm).

Source: Official regulatory press releases and regulatory disclosures filed by JTL Industries Limited with BSE Limited and the National Stock Exchange of India Ltd.