Jindal Stainless Announces Major Expansion and Acquisition Plans
Jindal Stainless, India's leading stainless steel manufacturer, has announced ambitious plans to expand its melting and downstream capacities, aiming to become a global leader in the stainless steel industry. This three-pronged investment strategy is valued at nearly Rs 5,400 crore.
Jindal Stainless has entered into a joint venture to develop and operate a stainless steel melt shop (SMS) in Indonesia. This facility will have an annual production capacity of 1.2 million tonnes per annum (MTPA), increasing the company's melting capacity by over 40% to 4.2 MTPA. The investment for this project is over Rs 700 crore.
The company is also investing around INR 1,900 crore to expand its downstream lines in Jajpur, Odisha. This expansion will allow the company to process the increased melting capacity.
Jindal Stainless has earmarked nearly Rs 1,450 crore for the associated upgradation of infrastructural facilities, including 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. This acquisition will cost around Rs 1,340 crore.
Jindal Stainless aims to expand its outreach in India and abroad and strengthen its presence in the value-added segment through these acquisitions and investments. The company is committed to using renewable energy for its expansion plans.
Jindal Stainless is confident that these strategic investments will position the company as a leading player in the global stainless steel market. The company believes that the Indonesian joint venture will provide speed and raw material security, while the Jajpur lines expansion will offer enhanced value to domestic and export customers. The acquisition of Chromeni will further expand the company's reach and strengthen its presence in the value-added segment.