In a strategic move aimed at consolidating its position as a global leader in stainless steel production, Jindal Stainless announced a comprehensive investment strategy totaling Rs 5,400 crore. The ambitious plan encompasses a series of initiatives spanning expansion, joint ventures, and acquisitions, signaling the company’s commitment to fortify its capabilities and market presence.
As part of its expansion strategy, Jindal Stainless revealed its entry into a joint venture for the establishment and operation of a stainless-steel melt shop (SMS) in Indonesia. This venture, projected to have an annual production capacity of 1.2 million tonnes per annum (MTPA), is set to receive an infusion of Rs 700 crore in investments from Jindal Stainless. The move is anticipated to elevate the company’s melting capacity by over 40 percent, reaching 4.2 MTPA.
Furthermore, the company disclosed plans to inject Rs 1,900 crore into the expansion of its downstream lines located in Jajpur, Odisha. This initiative aims to bolster the company’s melting capacity, thereby enhancing its production capabilities. Additionally, Jindal Stainless has allocated Rs 1,450 crore for the associated upgradation of infrastructural facilities, including railway siding, sustainability projects, and renewable energy generation.
Speaking at a press conference, Managing Director Abhyuday Jindal expressed confidence in the timeline for both projects, assuring that they would be operational within the next two years. He highlighted that the majority of the funding for these investments would be sourced from internal accruals.
In a strategic move to further augment its capabilities, Jindal Stainless revealed plans to acquire a 54 percent equity stake in Chromeni Steels Private Limited (CSPL). CSPL owns a 0.6 MTPA cold rolling mill situated in Mundra, Gujarat. The structured indirect acquisition deal entails an investment of approximately Rs 1,340 crore, which includes taking over existing debt of around Rs 1,295 crore and an equity purchase balance of around Rs 45 crore.
Abhyuday Jindal elaborated on the strategic significance of these endeavors, emphasizing the multifaceted benefits they offer. “The Indonesian joint venture will ensure both speed and raw material security, while the expansion of our Jajpur lines will provide added value for domestic and export customers. The acquisition of the cold rolling mill at Chromeni will expand our market reach, both domestically and internationally, strengthening our presence in the value-added segment over the long term,” he stated.
These expansion and acquisition plans underscore Jindal Stainless‘s commitment to augmenting its melting and downstream capacities, positioning itself as a formidable player in the global stainless steel industry.