Our expansion plans will be backed by renewables, not thermal power’: Abhyuday Jindal of Jindal Stainless – EQ
In Short – Abhyuday Jindal of Jindal Stainless emphasizes a commitment to renewable energy for expansion plans, shifting away from thermal power. This strategic decision aligns with sustainability goals, reducing carbon footprint and promoting cleaner, more resilient energy sources for future growth.
In Details – The company announced a three-pronged investment strategy worth nearly Rs 5,400 crore to achieve global leadership in stainless steel. India’s leading stainless steel manufacturer Jindal Stainless on Wednesday announced its major expansion and acquisition plans to augment its melting and downstream capacities. The company announced a three-pronged investment strategy worth nearly Rs 5,400 crore to achieve global leadership in stainless steel.
Jindal Stainless entered into a joint venture (JV) for developing and operating a stainless steel melt shop (SMS) in Indonesia with an annual production capacity of 1.2 million tonnes per annum (MTPA). This will increase the company’s melting capacity by over 40% to 4.2 MTPA at an investment of more than Rs 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.
In addition, the company also set aside around INR 1,900 crore for the expansion of its downstream lines in Jajpur, Odisha, to be able to process an increase in melting capacity. Besides, the company earmarked nearly Rs 1,450 crore towards the associated upgradation of infrastructural facilities, such as railway siding, sustainability-related projects, and renewable energy generation.
Also, the company will acquire a 54% 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. The transactions entail an outlay of around 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. “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.
Speaking at an interaction on Wednesday, Jindal, 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 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.”
He added: “Our expansion plans will only be backed by renewable energy and not thermal power.” Tarun Kumar Khulbe, CEO & Wholetime Director, Jindal Stainless, said: “Investment in upstream facilities in Indonesia is a plug-and-play model which can be expected to get operational in the next 24 months given the existing industrial park facilities at the site. Logistics and power costs render Indonesia even more favourable to such investments. Besides, the Government of Indonesia has banned the export of nickel ore and is promoting investments into downstream facilities through long-term tax holidays. The acquisition of Chromeni supports our strategy to increase cold rolled products in our product mix.”
