Jindal Stainless to Invest Rs 5,400 Crore for Expansion and Growth

Jindal Stainless Ltd (JSL) has unveiled an ambitious investment plan of Rs 5,400 crore aimed at capacity expansion and strategic acquisitions over the next two years, as announced by Managing Director Abhyuday Jindal. This significant financial commitment is set to propel the company towards achieving global leadership in the stainless steel sector. The announcement came in the wake of a board meeting, with Jindal revealing that approximately 90% of the funding for these ventures would be sourced from internal accruals.

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Currently, JSL operates two manufacturing units located in Jajpur, Odisha, and Hisar, Haryana. These facilities boast a combined melting capacity of 3 million tonnes per annum (MTPA). The planned investments are divided into three strategic areas, aiming to bolster the company's production capabilities and infrastructure significantly.

One of the key initiatives includes ramping up the company's melting capacity by over 40% to reach 4.2 MTPA. This expansion will see an investment exceeding Rs 700 crore. Additionally, JSL intends to allocate around Rs 1,900 crore for enhancing its downstream lines at the Jajpur plant. A further Rs 1,450 crore is earmarked for infrastructure improvements, focusing on railway siding, sustainability projects, and renewable energy generation.

In a move to consolidate its market position, JSL plans to acquire a 54% equity stake in Chromeni Steels Pvt Ltd (CSPL), which operates a 0.6 MTPA cold rolling mill in Mundra, Gujarat. This acquisition is structured as an indirect deal valued at approximately Rs 1,340 crore. It includes taking over existing debt of Rs 1,295 crore and an additional Rs 45 crore towards equity purchase. The stake will be acquired from Tsingshan Group of China, further expanding JSL's footprint in the industry.

Moreover, JSL has entered into a joint venture with a Singapore-based entity to develop and operate a stainless steel melt shop in Indonesia. This facility is projected to have an annual production capacity of 1.2 MTPA. Anurag Mantri, Executive Director & Group CFO of JSL, highlighted that this international collaboration would serve as an alternative production route, mitigating raw material risks. The financing strategy for these ventures will blend internal accruals with debt while maintaining a close watch on leverage ratios.

Jindal Stainless stands as India's premier stainless steel manufacturer and ranks among the top 10 globally. These strategic investments underscore the company's commitment to strengthening its market leadership and enhancing its production capabilities on an international scale.