JTL’s new line will produce 508mm OD pipes & 400mm structural sections, addressing India’s growing demand for high-strength steel pipes in 12 months.
Key Expansion Highlights
✅ 300,000 MTPA capacity addition for high-grade pipes
✅ Product range expansion:
- Round pipes: 168mm to 508mm OD
- Square sections: Up to 400mm x 400mm
- Rectangular sections: Up to 300mm x 500mm
- Thickness: 4mm to 16mm
✅ 12-month implementation timeline
✅ Focus on ASTM/API-grade pipes for value-added segments
Strategic Expansion Details
Technical Specifications of New ERW Line
| Parameter | Specification |
|---|---|
| Production Capacity | 300,000 MTPA |
| Round Pipe Range | 6″ to 20″ (168-508mm OD) |
| Structural Sections | Square: 130x130mm to 400x400mm Rectangular: 100x160mm to 300x500mm |
| Wall Thickness | 4mm to 16mm |
| Target Standards | ASTM, API, IS 3589 |
Market Positioning
✔ High-strength steel pipes for infrastructure/O&G
✔ Precision structural sections for construction
✔ Replaces imports in critical diameter ranges
Growth Drivers & Industry Context
1. Demand-Supply Gap
- India’s structural pipe demand growing at 9% CAGR
- Current API-grade pipe imports worth ₹2,800 crore/year
2. Government Initiatives
- National Infrastructure Pipeline projects
- City Gas Distribution expansion
3. Competitive Edge
- Wider product range vs domestic peers
- Ability to serve both round & structural pipe markets
Implementation Roadmap
- Month 0-3: Machinery procurement & site prep
- Month 4-8: Plant installation & commissioning
- Month 9-12: Trial runs & quality certifications
Financial & Operational Impact
✔ Revenue Potential: ₹1,200-1,500 crore annually at full utilization
✔ Margin Boost: Value-added products command 18-22% EBITDA vs 12-15% for commoditized pipes
✔ Employment: 150+ direct jobs created
Industry Insight:
“Post-expansion, JTL will be among few Indian players capable of manufacturing 20″ API-grade pipes domestically.” – Steel Sector Analyst
Upcoming Catalyst:
BIS certification process for new product ranges
Sources: Company Announcement, ISA Reports
Expansion announced July 2025