Jindal Stainless Ltd (JSL) would invest Rs 5,400 crore to increase capacity to 4.2 million tonnes per year, the company's Managing Director Abhyuday Jindal announced on Wednesday. The investments will be made over the next two years, Jindal stated at a news conference. He stated that internal accruals will account for around 90% of the investments.
Jindal shared the breakdown of the investment plan, saying, "This will increase the company's melting capacity by over 40% to 4.2 MTPA at an investment of more than Rs 700 crore."
Second, the corporation has set aside around Rs 1,900 crore for the expansion of downstream lines at its plant in Jajpur, Odisha. Furthermore, the corporation set aside roughly Rs 1,450 crore for the upgrade of physical amenities such as railway siding, sustainability initiatives, and renewable energy generation.
Third, the business would acquire a 54% ownership position in Chromeni Steels Pvt Ltd (CSPL), which owns a 0.6 MTPA cold rolling mill in Mundra, Gujarat, through a structured indirect acquisition transaction.
He stated that the transactions will cost around Rs 1,340 crore, which includes a Rs 1,295 crore takeover of current debt and a balance of Rs 45 crore for equity purchase.
"The three strategic investments worth nearly Rs 5,400 crore to achieve global leadership in stainless steel," Jindal said in a statement. The MD also stated that the company has formed a joint venture (JV) with a Singaporean company to develop and operate a stainless steel melt facility in Indonesia with a production capacity of 1.2 million tonnes per year.
