Jindal Stainless announces ₹5400-cr investment strategy
Jindal Stainless has unveiled a comprehensive investment strategy totalling nearly ₹5,400 crores, aimed at expanding its melting and downstream capacities, alongside strategic acquisitions, with the goal of positioning itself as one of the foremost stainless steel producers globally. The company has 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 its melting capacity by over 40% to 4.2 MTPA at an investment of more than ₹700 crore. The company also set aside around ₹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 has earmarked nearly ₹1,450 crore towards the associated upgradation of infrastructural facilities, such as railway siding, sustainability-related projects, and renewable energy generation. The company will 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 ₹1,340 crore, comprising a takeover of existing debt of ₹1,295 crore and a balance of ₹45 crore towards equity purchase.
Jindal Stainless Managing Director Abhyuday Jindal said, “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.”
CEO & Wholetime 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.”
Besides, the company has earmarked nearly ₹1,450 crore towards the associated upgradation of infrastructural facilities, such as railway siding, sustainability-related projects, and renewable energy generation. The company will 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 ₹1,340 crore, comprising a takeover of existing debt of ₹1,295 crore and a balance of ₹45 crore towards equity purchase.
Jindal Stainless Managing Director Abhyuday Jindal said, “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.”
CEO & Wholetime 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.”