JTL Industries expands into copper and brass manufacturing with RCI Industries agreement

JTL Industries Limited has taken a significant step toward expanding its footprint in the copper products market by entering into a memorandum of understanding (MOU) with RCI Industries & Technologies Limited. Under this agreement, RCI Industries will manufacture up to 200 metric tonnes per month of copper and brass alloys for JTL Industries on a job-work basis. This strategic move allows JTL Industries to diversify its product offerings beyond steel manufacturing while strengthening its presence in non-ferrous metal production, an area critical to India’s defense and infrastructure sectors.

The agreement marks a key milestone for JTL Industries, which has primarily been known for its expertise in galvanized steel pipes, ERW black pipes, and structural hollow sections. With India’s increasing focus on self-reliance in manufacturing, particularly under initiatives like “Make in India,” the company is positioning itself to tap into new opportunities in defense, industrial, and infrastructure markets.

Why Is JTL Industries Expanding Into Copper and Brass Manufacturing?

JTL Industries’ move into copper products manufacturing is driven by strong market demand and the growing importance of non-ferrous metals in various industrial applications. Copper and brass alloys are essential in electrical components, automotive manufacturing, and defense supplies. By collaborating with RCI Industries, JTL Industries gains immediate access to established manufacturing facilities, ensuring faster market entry without the need for large-scale capital investments.

RCI Industries, a publicly listed company with a market capitalization of Rs. 9 crores, operates a large manufacturing plant in Baddi, Himachal Pradesh. Spanning 27,000 square meters, the facility has an annual production capacity of 15,000 metric tonnes for copper and brass strips, with the flexibility to allocate up to 6,000 metric tonnes per annum for value-added products. This capacity allows JTL Industries to scale its non-ferrous metal production efficiently, meeting the growing demand for high-quality copper and brass components.

How Will the RCI Industries Agreement Benefit JTL Industries?

The MOU with RCI Industries is expected to provide several advantages for JTL Industries as it expands beyond galvanized steel pipes and steel tubes. The agreement supports the company’s strategy to integrate copper products manufacturing into its portfolio, creating new revenue streams and strengthening its position in the industrial metals sector.

One of the most critical aspects of this expansion is its potential role in the defense industry. India’s growing focus on indigenous defense manufacturing has created a high demand for non-ferrous metal components, including bullet casings and specialized alloys for military applications. By leveraging RCI Industries’ expertise, JTL Industries is well-positioned to supply non-ferrous metal production for defense-related projects, aligning with the government’s push for domestic sourcing of critical materials.

Additionally, the job-work model ensures that JTL Industries benefits from immediate production capabilities without incurring the costs of setting up a new facility. This approach enables the company to test the market, refine its production strategy, and gradually scale operations before committing to a full-fledged acquisition.

When Will JTL Industries Take Full Ownership of RCI’s Facility?

JTL Industries plans to transition from the current job-work agreement to full ownership of the RCI Industries facility upon securing approval from the National Company Law Tribunal (NCLT). Once the transaction is finalized, the plant will become a fully integrated part of JTL Industries’ operations, contributing directly to revenue growth and expanding the company’s market presence.

The acquisition is expected to significantly impact JTL Industries’ financial performance, with the facility’s contribution to topline growth projected to become substantial by FY27. By fully controlling the copper products manufacturing process, JTL Industries will have greater flexibility in meeting market demand and developing high-value, customized solutions for its clients.

What Does This Mean for the Future of JTL Industries?

JTL Industries’ expansion into non-ferrous metal production represents a broader strategic shift aimed at diversifying its business model. While the company has built a strong reputation in galvanized steel pipes and structural steel products, its entry into copper products manufacturing allows it to tap into new markets with high growth potential.

With the increasing use of copper and brass alloys in renewable energy, telecommunications, and defense applications, JTL Industries is positioning itself to capitalize on long-term industry trends. The ability to manufacture a diverse range of metal products strengthens its competitive edge and reduces dependence on a single product category.

The leadership at JTL Industries has expressed confidence in this transition, emphasizing that the collaboration with RCI Industries will open new avenues for growth. By leveraging RCI’s production capabilities, JTL Industries aims to gain a stronger foothold in the copper products market while maintaining its leadership in galvanized steel pipes and other structural products.

About JTL Industries Limited

JTL Industries Limited is among India’s fastest-growing manufacturers of steel tubes and pipes. Headquartered in Chandigarh, the company operates manufacturing facilities in Punjab, Maharashtra, and Chhattisgarh. With a total production capacity of approximately 6,86,000 metric tonnes per annum for pipes and 3,00,000 metric tonnes per annum for backward integration, JTL Industries is recognized as a Star Export House.

Its product range includes galvanized steel pipes, MS black pipes, hollow sections, and solar structures, catering to diverse industrial and infrastructure needs. With the latest expansion into copper products manufacturing, the company is further strengthening its market position across multiple metal segments.

What’s Next for JTL Industries and RCI Industries?

As the agreement progresses, JTL Industries will focus on integrating non-ferrous metal production into its broader manufacturing framework. The company is expected to invest in process optimization, quality control, and market expansion efforts to ensure a seamless transition into copper products manufacturing.

If the NCLT approves the acquisition, JTL Industries will gain full ownership of the RCI Industries facility, allowing it to further refine its offerings and expand its customer base. The company’s growing presence in the copper products market is likely to attract new clients from industries that require high-quality non-ferrous metal components.

With its strong financial foundation and an aggressive growth strategy, JTL Industries is set to become a leading player in non-ferrous metal production, solidifying its reputation as a diversified industrial manufacturer.