From being featured within the second RBI listing of notorious defaulters in 2017-18 to planning a capital expenditure of ₹1,000 crore, Jai Balaji Industries has come a good distance, turning into a really uncommon case of a profitable turnaround story within the metal trade.
Hit by the sudden deallocation of a coal block by the Supreme Court docket and the enterprise right into a 5 million tonne each year greenfield enlargement, the producer of huge ductile iron (DI) pipes confronted an unprecedented problem in 2011-12 and at last defaulted on a ₹3,400 crore mortgage to a consortium of twenty-two banks.
Although it was dragged to IBC, the corporate made an out-of-court settlement with lenders. A number of banks assigned the loans to asset reconstruction firms – Edelweiss and Omkara — whereas some settled the dues straight with the corporate.
Even whereas battling the monetary disaster, the corporate centered on bettering effectivity, chopping prices, and bettering the standard of its merchandise. It manufactures DI pipes for water provide, speciality ferroalloys, and TMT bars. The turnaround level for the corporate emerged in 2020.
The corporate’s web revenue within the first half of this fiscal zoomed multi-fold to ₹372 crore towards ₹43 crore logged in similar interval final 12 months, on higher margin. Revenue was up 7 per cent at ₹3,065 crore (₹2,876 crore).
Aditya Jajodia, Chairman and Managing Director, Jai Balaji Industries, mentioned that the credit score for the turnaround of the corporate goes to the monetary lenders, shareholders, and workers who had full religion within the administration all through all the course of and believed the corporate would come out in flying colors.
The promoter’s household had infused ₹250 crore into the corporate this 12 months to shore up the online price and instil confidence amongst lenders. It just lately raised ₹559 crore from Tata Capita to retire excellent debt and allotted ₹40 crore for working capital..
Jai Balaji Industries has drawn a capex plan of about ₹1,000 crore to boost the capability of DI pipes and special-grade ferroalloys at its Durgapur plant in West Bengal. It’s also firming up plans to arrange a 50-70 MW solar energy plant by a separate capex.
The corporate expects to finish the capability enlargement undertaking in 18 months and goals to grow to be web debt-free by repaying the present debt of ₹560 crore.
The brand new technique focuses on ductile iron pipes used for water provide and is benefiting from the Central authorities’s Jal Jeevan Mission, which funds water provide initiatives throughout the nation. The sector is anticipated to develop at a 13-15 per cent CAGR over the close to future.
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