Bonlon Industries Expands Into Aluminum Sector with New Plant in Maharashtra
Bonlon Industries, traditionally known in the Bombay Stock Exchange (BSE) for its copper wire manufacturing, is branching out into the aluminum sector. The company has announced plans to set up an aluminum plant in MIDC Taloja, Maharashtra, targeting the production of aluminum rods, wires, and ingots derived from scrap materials. This strategic move comes as the company seeks to diversify its product range and tap into the increasing demand for aluminum in various industries.
With the site in Taloja finalized, Bonlon Industries is gearing up to start construction work imminently, eyeing the beginning of production for the financial year 2024-25. The anticipated annual production capacity of the new facility is set at 75 thousand tons. This expansion is not just about increasing production capabilities but also aims to significantly bolster the company's revenue, with expectations set between 200 to 250 crores (approximately $24.06 million to $30.07 million USD) annually and projected profit margins of 4 to 5 percent.
Under the leadership of the Arun Kumar Jain family, Bonlon Industries has been a key player in the copper industry for 25 years, with a 64 percent stake held by the promoter group. The company's foray into the aluminum sector marks a significant milestone in its diversification strategy. Bonlon is not just confined to copper wire production; it has a diversified portfolio that includes trading in ferrous and non-ferrous metals, hospitality, and civil construction sectors.
The decision to expand into aluminum production comes at a time when Bonlon Industries has seen its business quadruple over the last three years, soaring from 135 crores (approximately $16.24 million USD) to approximately 511 crores (about $61.47 million USD). This growth has been fueled by rising demand for copper wire and rods across various sectors. However, the volatility of copper prices and the impact on profit margins have prompted a strategic shift towards manufacturing to enhance profitability.
With an ambitious target of achieving a business turnover of 680 crores (approximately $81.80 million USD) and a net profit of 10 crores (about $1.20 million USD) in the upcoming financial year, Bonlon Industries is aiming for a new chapter of growth and diversification.
