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Jai Balaji Industries, a prominent steelmaker, is set to embark on a new phase of growth with a substantial investment of Rs. 1,000 crore over the next 15 to 18 months. The company, which has overcome previous financial challenges, plans to self-fund this expansion through internal accruals. Aditya Jajodia, the Chairman and Managing Director of Jai Balaji Industries, highlighted the resolution of tough challenges faced by the company in recent years.
"Jai Balaji 2.0" aims for a transition into a high-margin business, focusing on specialized products like DI (ductile iron) pipes and special ferro alloys. The brownfield expansion of manufacturing capacity will take place at its Durgapur plant in West Bengal, with Rs. 350-400 crore already invested out of the total sum. The company operates four integrated steel manufacturing units across West Bengal and Chhattisgarh.
The current share of value-added products is 55%, expected to rise to 80% in the next 18 months. This shift is projected to boost the companys revenue to Rs 9,500-10,000 crore in FY26, compared to Rs 6,125.08 crore in FY23. Jai Balaji reported its highest-ever quarterly profit after tax (PAT) of Rs 234.60 crore in Q3FY24, reflecting a significant improvement from Rs 27.91 crore in Q3FY23.
Adhering to a strategy of chasing the bottom line rather than the top line, Jai Balajis focus on value-added products is evident in its recent financial performance. Aditya Jajodia emphasized that while the growth might be slower, it will be built on a strong foundation.
The turnaround for Jai Balaji is seen as a second coming, marked by resilience and strategic transformation. Over the last decade, the company faced challenges, landing on the Reserve Bank of Indias (RBI) second list of non-performing assets (NPAs) in 2017-18. However, a settlement with some banks and strategic debt agreements with non-banking financial companies have paved the way for the companys resurgence. Jai Balaji now aims to be net debt-free within the next 18 months, showcasing a remarkable journey of resilience and strategic adaptation. |
