Jindal Stainless to invest ₹5,400 cr to expand
Delhi-based Jindal Stainless Steel Ltd (JSL) on Wednesday said it will make an investment of ₹5,400 crore to boost production capacity and make acquisitions.
The company’s investment strategy involves pursuing growth through a blend of organic and inorganic expansions over the next three years. It will finance the acquisitions and capacity additions mostly through internal accruals.
As part of the investment, JSL has formed a joint venture (JV) with a Singapore entity for developing and operating a stainless steel melt shop (SMS) in Indonesia with an annual production capacity of 1.2 million tonnes per annum (MTPA) at an investment of more than ₹700 crore.
The facility will increase the company’s melting capacity by over 40% to 4.2 MTPA over the next two years.
Along with the Indonesian facility, the company will also be expanding its downstream lines in Jajpur, Odisha, at an investment of around ₹1,900 crore over the next two years. This will help the company increase its melting capacity. Additionally, the company has also earmarked nearly ₹1,450 crore towards the associated upgrade of infrastructure facilities, such as railway siding, sustainability-related projects, and renewable energy generation around the Jajpur facility.
It is also acquiring a 54% equity stake in Chromeni Steels Private Ltd (CSPL), which owns a 0.6 MTPA cold rolling mill located in Mundra, Gujarat. The transaction entails an outlay of around ₹1,340 crore, comprising a takeover of existing debt of ₹1,295 crore and a balance of ₹45 crore towards equity purchase.
“With these acquisitions and investments, we have orchestrated a clear growth plan to become one of the leading players in the world. The Indonesian JV will get us the best of speed and raw material security, and the augmentation of the Jajpur lines will offer enhanced value for domestic and export customers,” said Abhyuday Jindal, managing director, JSL, in a press conference.