Jindal Stainless Plans Massive Expansion Over Next Two Years
Photo : PTI
Jindal Stainless Ltd (JSL) is gearing up for a significant expansion, as announced by the company’s Managing Director, Abhyuday Jindal, on Wednesday. With a whopping investment of Rs 5,400 crore earmarked for the endeavor, the company aims to enhance its capacity to 4.2 million tonnes per annum within the next two years.
During a press conference, Jindal revealed that approximately 90 per cent of this investment will be sourced from internal accruals. Delving into the specifics of the investment plan, he outlined that a considerable portion, exceeding Rs 700 crore, will be allocated to augment the company’s melting capacity by more than 40 per cent.
Furthermore, JSL has allocated around Rs 1,900 crore for the expansion of its downstream lines at its plant situated in Jajpur, Odisha. This strategic move underscores the company’s commitment to bolstering its operational capabilities.
In addition to expanding its manufacturing capacity, Jindal Stainless has set aside approximately Rs 1,450 crore for various infrastructural enhancements. These investments will be directed towards upgrading facilities such as railway siding, sustainability initiatives, and renewable energy generation, reflecting the company’s forward-looking approach towards sustainability and efficiency.
Moreover, as part of its growth strategy, JSL will acquire a significant 54 per cent equity stake in Chromeni Steels Pvt Ltd (CSPL). This acquisition, facilitated through a structured indirect deal, will grant JSL ownership of a 0.6 million tonnes per annum cold rolling mill located in Mundra, Gujarat.
The expansion plans outlined by Jindal Stainless Ltd underscore the company’s commitment to innovation, growth, and enhancing its position in the stainless steel industry. With these substantial investments, JSL aims to reinforce its foothold in the market and cater to the evolving demands of its customers effectively.
The transactions entail an outlay of about Rs 1,340 crore, comprising a takeover of existing debt of Rs 1,295 crore and a balance of Rs 45 crore towards equity purchase, he said. “The three strategic investments worth nearly Rs 5,400 crore to achieve global leadership in stainless steel,” Jindal said.
The MD also said the company has entered into a joint venture (JV) with a Singapore-based company for developing and operating a stainless steel melt shop in Indonesia with an annual production capacity of 1.2 million tonnes per annum.
(PTI Inputs)
