Jindal Stainless announces ₹5400-cr investment strategy
Besides, the company has earmarked nearly ₹1,450 crore towards the associated upgradation of infrastructural facilities, such as railway siding, sustainability-related projects, and renewable energy generation. 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 ₹1,340 crore, comprising a takeover of existing debt of ₹1,295 crore and a balance of ₹45 crore towards equity purchase.
Jindal Stainless Managing Director Abhyuday Jindal said, “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.”
CEO & Wholetime Director Tarun Kumar Khulbe 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.”
