Jindal Stainless announces ₹5,400 crore worth of strategic investments, to increase capacity to 4.2 MTPA

Jindal Stainless on Wednesday announced ₹5,400 crore worth of strategic investments, which is set to take the company’s melting capacity to 4.2 million tonnes per annum (MTPA).

Jindal Stainless had an annual turnover of ₹35,700 crore in FY23 and has three million tonnes of annual melt capacity. It has seven stainless steel manufacturing and processing facilities in India and abroad, including in Spain and Indonesia, and a worldwide network in 15 countries.

As part of its three-pronged strategy, the firm entered into a joint venture (JV) for developing and operating a stainless steel melt shop in Indonesia with an annual production capacity of 1.2 MTPA. This will increase the company’s melting capacity by over 40% to 4.2 MTPA at an investment of more than ₹700 crore.

Secondly, the company also set aside around ₹1,900 crore for the expansion of its downstream lines in Jajpur, Odisha, to be able to process an increase in melting capacity. The firm has also earmarked nearly ₹1,450 crore towards the associated upgradation of infrastructural facilities, such as railway siding, sustainability-related projects, and renewable energy generation.

Thirdly, the company said it will acquire a 54% equity stake in Chromeni Steels (CSPL), which owns a 0.6 MTPA cold rolling mill located in Mundra, Gujarat, through a structured indirect acquisition deal.

The transactions will involve an outlay of around ₹1,340 crore, comprising a takeover of existing debt of ₹1,295 crore and a balance of ₹45 crore towards equity purchase, it said.

Abhyuday Jindal, Managing Director at Jindal Stainless said the Indonesian JV will get the firm the best of speed and raw material security while the augmentation of the Jajpur lines will offer enhanced value for domestic and export customers. “The cold rolling mill at Chromeni will expand our outreach, both in India as well as abroad, and strengthen our presence in the value-added segment in the long term,” the company said.

Shares of the company have risen over 23% since the beginning of the year. The stock has gained over 148% in the last one year.