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May 1, 2024

Jindal Stainless Announces Rs 5,400 Crore Investment for Capacity Expansion

Jindal Stainless Ltd (JSL) has unveiled plans for a significant expansion, with an investment of Rs 5,400 crore aimed at boosting its capacity to 4.2 million tonnes per annum (MTPA). Managing Director Abhyuday Jindal made the announcement on Wednesday during a press conference, detailing the company’s ambitious growth strategy.

According to Jindal, the investment will be implemented over the next two years, with approximately 90 per cent of the funding coming from internal accruals. The expansion encompasses various aspects of the company’s operations, including increasing melting capacity, expanding downstream lines, and upgrading infrastructure facilities.

The bulk of the investment, more than Rs 700 crore, will go towards increasing melting capacity by over 40 per cent, bringing it to 4.2 MTPA. Additionally, around Rs 1,900 crore has been allocated for expanding downstream lines at the JSL plant in Jajpur, Odisha.

Another significant portion of the investment, approximately Rs 1,450 crore, will be directed towards upgrading infrastructural facilities. This includes enhancements to railway siding, sustainability projects, and the generation of renewable energy.

In a strategic move, Jindal Stainless will acquire a 54 per cent equity stake in Chromeni Steels Pvt Ltd (CSPL), which operates a 0.6 MTPA cold rolling mill in Mundra, Gujarat. This acquisition, structured through an indirect deal, involves an outlay of about Rs 1,340 crore. It comprises taking over existing debt amounting to Rs 1,295 crore and an equity purchase balance of Rs 45 crore.

“These strategic investments totaling nearly Rs 5,400 crore are aimed at positioning us as a global leader in stainless steel,” Jindal affirmed.

Furthermore, the company has ventured into a joint venture (JV) with a Singapore-based firm to establish and operate a stainless steel melt shop in Indonesia. The facility is projected to have an annual production capacity of 1.2 million tonnes, further expanding Jindal Stainless’ presence in the international market.

The announcement underscores Jindal Stainless Ltd’s commitment to growth and innovation in the stainless steel industry. With these investments, the company aims not only to enhance its production capacity but also to strengthen its position as a major player in the global stainless steel market.

Jhumpa Lahiri

Jhumpa Lahiri

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