Completion of Amalgamation between Chetan Industries Limited & JTL Industries Limited
Completion of Amalgamation between Chetan Industries Limited & JTL Industries Limited has led to enhancement of capacities of Steel Pipes by 1 lakh MTPA, Capacity of Coils by 1.5 Lakh MTPA, and operationalization of additional 36,000 MTPA capacity at Mandi Plant, Punjab.
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JTL Industries Limited has completed its amalgamation with Chetan
Industries Limited (CIL) which was
unanimously approved by all shareholders and creditors involved. This amalgamation creates more efficient
and bigger organization that will be better positioned to serve its customers and directly
benefit its stakeholders.
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The amalgamation will bring together the complementary strengths of
both companies, resulting in stronger, integrated business with expanded
capabilities and increased
geographical penetration.
§ The strategic location of
CIL will facilitate JTL to move one step ahead by providing advantage
of backward integration ensuing cost synergies, stronger consolidated revenue,
and profitability.
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The merged entity will have an additional manufacturing capacity of
1,00,000 MTPA out of which 50% is dedicated towards producing value-added products.
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CIL’s presence in Raipur will allow the combined entity to be in
greater proximity to the raw materials which are pre requisites to deliver high quality products
and meet stringent
industry standards at
competitive prices.
§ The amalgamation will double
the number of dealers and distributors of JTL taking the count from 300+ dealers and distributors to over 600.
§ With these developments, JTL
has enhanced its capacity by 1.5 Lakh ton in Coils, 1 lakh ton in Steel Tubes and has operationalized
capacity of 36,000 MTPA at Mandi Plant, Punjab
taking the total manufacturing capacity to 5,86,000 MTPA, which is in line with JTL’s target
to reach 10,00,000 MTPA by FY25.
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This will make all our facilities a producer of value-added products
catering to robust domestic and international demand and in turn yielding
healthy EBITDA Margins,
supporting the overall growth story of the company.
Management Comments:
Commenting on the completion of merger, the management team of JTL stated:
“We are pleased to announce that the merger
between JTL and Chetan Industries Limited has been completed. The amalgamation marks an
important milestone in the evolution of our organization, and we are excited about the opportunities and benefits it brings to our stakeholders.
Our new entity
will leverage the strengths of both companies, resulting in a more robust
and efficient organization by
integrating our operations in turn resulting in cost synergies and improved
profitability. Our combined
capabilities and expanded
reach will allow us to enhance
our competitiveness in the market, and better serve the evolving needs of our customers.
The merger will aid JTL to increase market share and cater customers to
a greater extent by doubling the number of dealers and distributors to 600+ and augmenting our manufacturing capacity
by 1,00,000 MTPA, moving closer to the target of 10,00,000 MTPA by FY25. Moreover,
backward integration will facilitate the entity to operate more competitively, yielding
better EBITDA Margins and cashflows for the company.
Lastly, we have commenced manufacturing operation at Mandi Plant,
Punjab by 36,000 MTPA of the remaining
50,000 MTPA capacity.
This expanded capacity
will focus on manufacturing
of value-added product which will cater to rising demand from domestic and international markets further adding on to our EBITDA margins and
profitability.
With these efforts we at JTL remain committed at being a truly
stakeholder oriented and a stakeholder friendly company by simplifying and
streamlining our corporate structure.
In conclusion, we are excited about the opportunities that the merger
presents for our organization. We thank you for your continued support
and look forward
to working together
in these years ahead.”
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