IANS | 01 May, 2024
Steel manufacturer Jindal Stainless on Wednesday announced a
three-pronged investment strategy worth Rs 5,400 crore as part of its
plans to augment its melting and downstream capacities, the company said
in an exchange filing.
The steel manufacturer has also entered
into a joint venture (JV) for the development and operation of a
stainless-steel melt shop in Indonesia, which has an annual production
capacity of 1.2 million tonnes per annum (MTPA). The move which entails
an investment of Rs 700 crore will see the melting capacity of the steel
major go up by as much as 40 percent to 4.2 MTPA, according to the
company statement.
The steel major further stated that it has set
aside Rs 1,900 crore for the expansion of its downstream lines in Jajpur
and Odisha, while it has earmarked nearly Rs 1,450 crore towards the
associated upgradation of infrastructural facilities.
Besides, it
has announced the signing of an agreement to acquire a 54 per cent
equity stake in Chromeni Steels Private Limited (CSPL), which owns a 0.6
MTPA cold rolling mill located in Mundra, Gujarat, through a structured
indirect acquisition deal for Rs 45 crore.
The transactions also include a takeover of existing debt of Rs 1,295 crore, the company added.
"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," said Abhyuday Jindal, MD, Jindal
Stainless.
