Jindal Stainless to expand its global production capacity by investing ₹5,400 crore

MRT Online Desk Posted on: 2024-05-02 06:50:00 Viewer: 336 Comments: 0 Country: India City: New Delhi

Jindal Stainless to expand its global production capacity by investing ₹5,400 crore

New Delhi, India (Metro Rail Today): Jindal Stainless, India’s premier stainless steel manufacturer, has unveiled ambitious expansion and acquisition plans aimed at solidifying its position as one of the world's largest stainless steel producers. With a strategic investment strategy totaling nearly INR 5,400 crores, the company is poised for exponential growth in the global stainless steel market.

At the forefront of these plans is a groundbreaking joint venture in Indonesia to develop and operate a state-of-the-art stainless steel melt shop (SMS) with an annual production capacity of 1.2 million tonnes per annum (MTPA). This venture will significantly bolster Jindal Stainless's melting capacity by over 40%, reaching 4.2 MTPA, and will be complemented by expansions of downstream lines in Jajpur, Odisha, to accommodate the increased melting capacity.

Furthermore, Jindal Stainless is set to acquire a 54% equity stake in Chromeni Steels Private Limited (CSPL), adding a 0.6 MTPA cold rolling mill in Mundra, Gujarat, to its portfolio. This strategic move further enhances the company's presence in the value-added segment, positioning it for long-term success in both domestic and international markets.

Addressing a press conference, Managing Director Mr Abhyuday Jindal expressed confidence in the company's growth trajectory, stating, "With these acquisitions and investments, we have orchestrated a clear growth plan to become one of the leading players in the world. The Indonesian JV will provide us with speed and raw material security, while the expansion of our Jajpur lines will offer enhanced value for domestic and export customers."

CEO & Wholetime Director Mr Tarun Kumar Khulbe highlighted the advantages of investing in Indonesia, citing its favorable logistics and power costs, as well as government incentives for downstream facilities. He emphasized, "The acquisition of Chromeni supports our strategy to increase cold rolled products in our product mix, ensuring alignment with global benchmarks."

Echoing this sentiment, Executive Director & Group CFO Mr Anurag Mantri underscored the financial prudence of the investments, stating, "We will finance these investments through a combination of internal accruals and debt, while closely monitoring leverage ratios." He emphasized the role of the Indonesian SMS in mitigating raw material risks and enhancing downstream cold rolled capacities.

The partner entity for the Indonesian SMS boasts international repute and extensive experience in running similar projects, ensuring a seamless integration into Jindal Stainless's operations. The downstream expansion in Jajpur and the acquisition of CSPL are strategically aligned with the Indonesian SMS capacity, supporting overall facility balancing at the company level.

With an annual turnover of INR 35,700 crore (USD 4.30 billion) in FY23 and three million tonnes of annual melt capacity, Jindal Stainless stands as a beacon of excellence in the stainless steel industry. Committed to innovation, operational efficiency, and social responsibility, the company is poised for sustained growth while championing environmental sustainability. As it continues its journey towards a greener, more sustainable future, Jindal Stainless remains dedicated to enriching lives and reshaping the stainless steel landscape on a global scale.


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