Jindal Stainless Steel Ltd (JSL), based in Delhi, announced on Wednesday that it will invest ₹5,400 crore to increase production capacity and acquire new assets.
The company aims to grow through both internal expansion and acquisitions over the next three years. Most of the funds for these endeavors will come from its own profits.
As part of its investment plan, JSL has formed a joint venture (JV) with a Singaporean company to set up a stainless steel melt shop (SMS) in Indonesia. This facility, costing over ₹700 crore, will have an annual production capacity of 1.2 million tonnes per annum (MTPA), increasing JSL’s melting capacity by more than 40% to 4.2 MTPA within the next two years.
In addition to the Indonesian venture, JSL plans to expand its downstream lines in Jajpur, Odisha, with an investment of approximately ₹1,900 crore over the next two years. This expansion will further increase its melting capacity. Moreover, the company will allocate about ₹1,450 crore for infrastructure upgrades, including railway siding, sustainability projects, and renewable energy generation in the Jajpur facility.
Furthermore, JSL will acquire a 54% stake in Chromeni Steels Private Limited (CSPL), which operates a 0.6 MTPA cold rolling mill in Mundra, Gujarat. This acquisition involves an investment of around ₹1,340 crore, covering existing debt and equity purchase.
Abhyuday Jindal, managing director of JSL, stated that these investments aim to establish the company as a leading player in the global market. He highlighted the strategic importance of the Indonesian JV for securing raw materials and production efficiency, especially considering Indonesia’s abundant nickel ore resources.
JSL’s investment in Chromeni Steels will involve an additional ₹100 crore to restart operations at the facility within six months. This move will enhance JSL’s overall operational efficiency and logistics capabilities.
The investments come amid Indonesia’s ban on nickel ore exports and its promotion of FDI in downstream facilities, presenting an opportunity for JSL to secure raw materials and expand its production capacity.
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