The investment plan includes developing and operating a stainless steel melt shop (SMS) with an annual production capacity of 1.2 million tonne per annum in Indonesia, acquiring 54 percent stakes in a Chinese mill in Gujarat, and enhancing its melting and downstream capacities.
May 16, 2024
Jindal Stainless (JSL) has come up with an investment plan worth INR 5,400 crore to augment its melting and downstream capacities, as well as to bolster its global position as a leading high-quality stainless steel producer.
As per a recent exchange filing by the company, the Singapore-based subsidiary of JSL has entered into a joint venture (JV) with Zenith International Capital in Indonesia to develop and operate a stainless steel melt shop (SMS) with an annual production capacity of 1.2 MTPA.
The Indonesian JV, which entails an investment of INR 700 crore, will provide JSL with the best of speed and raw material security. The SMS will further increase its melting capacity by over 40 percent from the current 1.2 million tonnes per annum to 4.2 MTPA.
The steel giant has also announced acquisition of 54 percent equity stake of Tsingshan Holdings in Chromeni Steels Private Limited (CSPL), which owns a 0.6 MTPA cold rolling mill located in Mundra, Gujarat, through a structured indirect acquisition deal worth INR 1,340 crore. This includes takeover of existing debt of INR 1,295 crore and balance of INR 45 crore towards equity purchase.
The China-based company will resume operations with an investment of around INR 100 crore. The cold rolling mill at Chromeni will boost JSL’s presence in the value-added segment in the long term, while also expanding the company’s outreach in both India and abroad.
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Besides, Jindal Stainless has earmarked INR 1,900 crore for the expansion of its downstream lines in Jajpur, Odisha, to increase its melting capacity. The augmentation will offer enhanced value for domestic and export customers.
The company further plans an outlay of INR 1,450 crore for associated upgradation of its infrastructural facilities, including railway siding, sustainability-related projects, and generation of renewable energy (RE).
