Jindal Stainless has entered into a joint venture to establish a stainless steel melt shop in Indonesia, with a capacity to produce 1.2 million tonnes per year. This venture will boost the company's melting capacity by more than 40 per cent, reaching 4.2 million tonnes annually at an investment worth more than Rs 700 crore.
This venture is a part of the company's three-pronged investment plan, worth around Rs 5,400 crores.
The company will also be investing nearly 1,900 crore for expanding its downstream lines in Jajpur, Odisha, to accommodate the higher melting capacity. It has also allocated nearly Rs 1,450 crore for upgrading infrastructure like railway siding, sustainability-related projects, and renewable energy generation.
Abhyuday Jindal, Managing Director, said, “With these acquisitions and investments, we have orchestrated a clear growth plan to become one of the leading players in the world. The Indonesian JV will get us the best of speed and raw material security, and the augmentation of the Jajpur lines will offer enhanced value for domestic and export customers.”
The company is also planning to acquire a 54 per cent equity stake in Chromeni Steels Private Limited (CSPL) via a structured indirect acquisition deal. This transaction involves a total expenditure of about Rs 1,340 crore, including both equity and debt. CPSL has a cold rolling mill with a capacity of 0.6 MTPA in Mundra, Gujarat.
On an annual basis, the shares of the company have given a multibagging return of more than 148 per cent on the National Stock Exchange.
“The investment will especially contribute towards the overall balancing of our downstream cold rolled capacities, bringing it closer to the global benchmarks. The alternate route of production in Indonesia will help mitigate raw material risks. We will finance these investments through a combination of internal accruals and debt, while closely monitoring leverage ratios,” said Anurag Mantri, Executive Director and Group CFO.
