Jindal Stainless announces capacity expansion to 4.2 MTPA

Jindal Stainless recently announced their three-pronged investment strategy worth Rs.5400 crores with the aim to achieve global leadership in stainless steel industry.
The plan included Jindal stainless getting into a JV with an Indonesia based stainless steel melt shop (SMS) with an annual production capacity of 1.2 million tonnes per annum (MTPA), the deal would cost Jindal stainless Rs 700 crores and would increase their melting capacity by over 40 per cent, to 4.2 MTPA.
Part two of the strategy is to invest Rs 1,900 crores to expand its downstream lines in Jaipur and Odisha with the aim to increase its melting capacity along with a further plan to upgrade their infrastructural facilities like railway siding, sustainability related projects and renewable energy generation projects by earmarking another Rs 1,450 crores. The company aims to complete both the projects in the next two years funded mostly through internal accruals.
The company also plans to acquire 54 per cent equity stake in Chromeni Steels Private Limited (CSPL), through a structured indirect acquisition deal. The company owns a 0.6 MTPA cold rolling mill located in Mundra, Gujarat. According to Jindal Stainless, the transactions include an expenditure of around Rs 1,340 crores, including taking over existing debt of around Rs 1,295 crores and Rs 45 crores towards equity purchase.