Steel Surge Ahead—JTL Adds 300K MTPA, Eyes 1 Million Tonne Milestone by FY27

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In a strategic move to scale operations and meet rising infrastructure demand, JTL Industries Ltd has announced the addition of a new Electric Resistance Welded (ERW) pipe manufacturing line with a capacity of 300,000 metric tonnes per annum (MTPA). This expansion brings the company closer to its ambitious goal of reaching 1 million MTPA by FY27, reinforcing its position as one of India’s fastest-growing steel tube manufacturers.

Expansion Highlights

The new ERW line will be installed at one of JTL’s existing facilities, likely in Raipur or Mangaon, where the company has already scaled up operations in recent quarters.
With this addition, JTL’s total installed capacity now exceeds 986,000 MTPA, up from 686,000 MTPA as of late FY24.
The new line will focus on value-added structural steel tubes and hollow sections, catering to sectors like construction, solar, water infrastructure, and defense.

Strategic Impact

The expansion is part of JTL’s ₹500–550 crore capex plan, funded through internal accruals and QIP proceeds.
The company aims to increase its share of value-added products to over 50% by FY26, boosting margins and export competitiveness
JTL is also targeting a 15% export mix, up from the current 9%, with growing demand from Africa, Southeast Asia, and the Middle East.

Management Commentary

“This capacity addition is a testament to our commitment to innovation, scale, and sustainability. It strengthens our ability to serve India’s infrastructure boom and global demand for high-quality steel tubes,” said Madan Mohan Singla, Managing Director of JTL Industries.

Industry Context

India’s structural steel market is projected to grow at 8–10% CAGR through 2030, driven by government investments in smart cities, highways, railways, and renewable energy. JTL’s expansion aligns with this macro trend and positions it as a key player in the Make in India initiative.

Sources: Economic Times, SmallCap Spotlight, JTL Industries, ValuePickr Forum