Jindal Stainless, a major stainless steel maker, announced a three-part investment plan worth Rs 5,400 crore on May 1. The company told the stock exchanges that this plan is part of its goal to become a global leader in the stainless steel industry.
As part of its expansion strategy, the steel company has entered into a joint venture. This joint venture is for developing and operating a stainless-steel melt shop in Indonesia. The melt shop will have an annual production capacity of 1.2 million tonnes. Jindal Stainless plans to invest Rs 700 crore in this partnership. The company said this will increase its melting capacity by over 40 percent to 4.2 million tonnes per year.
Jindal Stainless also announced an investment of Rs 1,900 crore. This investment is for expanding its downstream production lines in Jajpur, Odisha. The aim is to increase the company’s melting capacity. Moreover, the company has set aside Rs 1,450 crore for upgrading related infrastructure facilities. These include railway siding, sustainability projects, and renewable energy generation.
While addressing a press conference, Managing Director Abhyuday Jindal said both these projects will become operational in the next two years. He added that funding for the total investment will mostly come from the company’s internal funds.
Additionally, the company announced it will acquire a 54 percent equity stake in Chromeni Steels Private Limited (CSPL). CSPL owns a cold rolling mill with a capacity of 0.6 million tonnes per year in Mundra, Gujarat. Jindal Stainless will acquire this stake through a structured indirect deal. The company said these transactions will require an outlay of around Rs 1,340 crore. This includes taking over existing debt of around Rs 1,295 crore and paying around Rs 45 crore for the equity purchase.
Jindal Stainless’ big investment plan aims to strengthen its position in the global stainless steel market. It will also help enhance the company’s production capabilities across various segments.
