Jindal Stainless to invest Rs 5,400 cr to expand capacity to 4.2 MT: Abhyuday Jindal

New Delhi: Jindal Stainless Ltd (JSL) will invest Rs 5,400 crore to expand capacity to 4.2 million tonne per annum, the company's Managing Director Abhyuday Jindal said on Wednesday.

The investments will be made during the next two years, Jindal said, while addressing a press conference.

Around 90 per cent of the investments will be made through internal accruals, he said.

Sharing the break-up of the investment plan, Jindal said, "This will increase the company's melting capacity by over 40 per cent to 4.2 MTPA at an investment of more than Rs 700 crore." Second, the company has also set aside around Rs 1,900 crore for the expansion of its downstream lines at its plant in Jajpur, Odisha.

Besides, the company earmarked nearly Rs 1,450 crore towards the associated upgrade of infrastructural facilities, such as railway siding, sustainability-related projects, and renewable energy generation.

Third, the company will acquire a 54 per cent equity stake in Chromeni Steels Pvt Ltd (CSPL), which owns a 0.6 MTPA cold rolling mill located in Mundra, Gujarat, through a structured indirect acquisition deal.

The transactions entail an outlay of about Rs 1,340 crore, comprising a takeover of existing debt of Rs 1,295 crore and a balance of Rs 45 crore towards equity purchase, he said.

"The three strategic investments worth nearly Rs 5,400 crore to achieve global leadership in stainless steel," Jindal said.

The MD also said the company has entered into a joint venture (JV) with a Singapore-based company for developing and operating a stainless steel melt shop in Indonesia with an annual production capacity of 1.2 million tonnes per annum.