Investments in the aluminium facility by Bonlon Industries indicate the metal's bright future

The Bombay Stock Exchange (BSE), India, listed Bonlon Industries Limited, renowned for its expertise in copper wire manufacturing, is embarking on a venture to establish a state-of-the-art aluminium facility in MIDC Taloja, Maharashtra. Anticipated to be operational soon, the plant aims to achieve an annual production capacity of 75 thousand tonnes. Specialising in utilising aluminium scrap, the facility will manufacture rods, wires, and ingots to meet the escalating demand across diverse sectors.

As per a high-ranking official within the company, the location for the upcoming aluminium plant has been confirmed in Taloja, and construction activities are set to commence shortly. The objective is to initiate production at the new facility during the fiscal year 2024-25. Projections indicate that the newly established plant is poised to contribute an annual revenue ranging from INR200 to 250 crores to the company, accompanied by a profit margin ranging between 4 to 5 per cent. Bonlon Industries, founded by the Arun Kumar Jain family 25 years ago, is primarily involved in manufacturing copper wire and rods. The promoter group, led by the Jain family, currently holds a 64 per cent stake in Bonlon.

An increase of fourfold in business

Bonlon Industries, a subsidiary of the Bonlon Group, manufactures copper wire and trades in both ferrous and non-ferrous metals. Additionally, the company is involved in the hotel business and civil construction. Over the past three years, the company has experienced substantial growth in its industry, with revenues surging from INR 135 crores to around 511 crores. Despite this positive trend, fluctuating copper prices and increased trading income have posed challenges to profit margins. Bonlon Industries is strategically shifting its focus towards manufacturing to improve overall profitability.

The company aspires to attain a business turnover of INR 680 crores and a net profit of INR 10 crores in the forthcoming fiscal year.

source: https://www.alcircle.com/news/investments-in-the-aluminium-facility-by-bonlon-industries-indicate-the-metal-s-bright-future-105732