Jindal Stainless has entered into a joint venture in Indonesia for developing, operating a stainless steel melt shop that has an annual production capacity of 1.2 MTPA.
“For the Indonesian SMS, the partner entity is of international repute with extensive experience in running such projects. The downstream expansion in Jajpur and acquisition of CSPL are aligned with the Indonesian SMS capacity,” Jindal Stainless said in a stock exchange filing.
The company expects this JV to increase its melting capacity by over 40% to 4.2 MTPA at an investment topping INR 700 crore.
"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.
To increase its melting capacity, Jindal Stainless has set aside INR 1,900 cr for expanding its downstream lines in Jajpur, Odisha. It has also earmarked around INR 1,450 crore for upgrading its infrastructure facilities such as railway siding, sustainability-related projects, and renewable energy generation, the company said in its statement.
In addition, it will pick a 54% stake in Gujarat-based Chromeni Steels Private Limited. The latter owns a 0.6 MTPA cold rolling mill in Mundra. Jindal will takeover existing debt of INR 1,295 crore and INR 45 crore towards the equity purchase.
"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," Jindal added.
