Jindal Stainless Announces ₹5,400 Crore Plan for Expansion

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Synopsis:

Jindal Stainless Steel Ltd (JSL) is set to invest ₹5,400 crore to expand production capacity and acquire Chromeni Steels Private Limited. This includes forming a joint venture in Indonesia for a stainless steel melt shop and expanding downstream lines in Odisha. The investment aims to increase melting capacity by over 40% to 4.2 MTPA, with the Indonesian venture alone adding 1.2 MTPA. Additionally, JSL plans to invest around ₹1,340 crore to revive Chromeni Steels' facility, aiming for operational status within six months.

Jindal Stainless News Today

Jindal Stainless Limited (JSL) revealed its plan to invest ₹5,400 crore over the next three years for organic and inorganic expansions. The investment will be primarily financed through internal accruals, aiming for significant growth in production capacity and market presence.

Additional Read: Share Market News

Joint Venture in Indonesia

JSL forms a joint venture with a Singapore entity to develop and operate a stainless steel melt shop in Indonesia, with an annual capacity of 1.2 million tonnes. The investment exceeds ₹700 crore and will increase JSL's melting capacity by over 40% to 4.2 MTPA in the next two years.

Expansion in Odisha

Alongside the Indonesian venture, JSL will expand downstream lines in Jajpur, Odisha, investing around ₹1,900 crore over two years. This expansion aims to increase melting capacity and enhance value for domestic and export customers. Additionally, infrastructure facilities will be upgraded with an investment of nearly ₹1,450 crore.

Acquisition of Chromeni Steels

JSL is acquiring a 54% equity stake in Chromeni Steels Private Limited, which owns a 0.6 MTPA cold rolling mill in Mundra, Gujarat. The investment totals around ₹1,340 crore, aiming to make it operational within six months and strengthening JSL's presence in the stainless steel market.

Sources:

https://www.livemint.com/companies/news/jindal-stainless-to-invest-5-400-cr-to-expand-11714569213856.html

https://timesofindia.indiatimes.com/business/india-business/jindal-stainless-to-invest-rs-5400-crore-to-expand-capacity-to-4-2-mt-abhyuday-jindal/articleshow/109756741.cms

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