Thursday, Jun 20 2024 | Time 18:23 Hrs(IST)
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Business Economy


Jindal Stainless announces Rs 5,400 crore strategic investment

New Delhi, May 1 (UNI) Jindal Stainless on Wednesday announced a three-pronged investment strategy worth nearly Rs 5,400 crore to expand its capacity and become a key player globally in the stainless steel sector.
The company has also entered into a joint venture (JV) 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). This will increase the company’s melting capacity by over 40% to 4.2 MTPA at an investment of more than Rs 700 crore.
Jindal Stainless has also set aside around Rs 1,900 crore for the expansion of its downstream lines in Jajpur, Odisha, to be able to process an increase in melting capacity.
"Besides, the company earmarked nearly Rs 1,450 crore towards the associated upgradation of infrastructural facilities, such as railway siding, sustainability-related projects, and renewable energy generation," the company said in a statement.
Jindal Stainless will also acquire a 54% equity stake in Chromeni Steels Private Limited (CSPL), which owns a 0.6 MTPA cold rolling mill located in Mundra, Gujarat, through a structured indirect acquisition deal. The transactions entail an outlay of around 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.
“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. The cold rolling mill at Chromeni will expand our outreach, both in India as well as abroad, and strengthen our presence in the value-added segment in the long term,” said Jindal Stainless Managing Director Abhyuday Jindal.
Speaking on the occasion, the company CEO & Whole time Director Tarun Kumar Khulbe said, “Investment in upstream facilities in Indonesia is a plug-and-play model which can be expected to get operational in the next 24 months given the existing industrial park facilities at the site. Logistics and power costs render Indonesia even more favourable to such investments.
Besides, the Government of Indonesia has banned the export of nickel ore and is promoting investments into downstream facilities through long-term tax holidays. The acquisition of Chromeni supports our strategy to increase cold rolled products in our product mix.”
UNI NK CS2005
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