New Delhi: Delhi-based Jindal Stainless Steel Ltd (JSL) has unveiled plans for an investment of Rs 5,400 crore to bolster production capacity and strategic acquisitions. The investment strategy, spanning over the next three years, encompasses a blend of organic growth and inorganic expansions.

A significant component of this investment involves the formation of a joint venture with a Singapore entity to establish a stainless steel melt shop (SMS) in Indonesia, with an annual production capacity of 1.2 million tons per annum (MTPA). This venture, valued at over Rs 700 crore, is poised to enhance the company's melting capacity by over 40 percent to 4.2 MTPA within the next two years.

In addition to the Indonesian venture, JSL is set to expand its downstream lines in Jajpur, Odisha, with an investment of approximately Rs 1,900 crore over the next two years. This expansion aims to further augment the company's melting capacity, accompanied by a commitment of nearly Rs 1,450 crore towards upgrading infrastructure facilities.

Furthermore, JSL is in the process of acquiring a 54 percent equity stake in Chromeni Steels Private Limited (CSPL), which operates a 0.6 MTPA cold rolling mill in Mundra, Gujarat. The acquisition, valued at around Rs 1,340 crore, will be financed through a combination of existing debt takeover and equity purchase.

"With these acquisitions and investments, we have orchestrated a clear growth plan to become one of the leading players in the world", Abhyuday Jindal, managing director of JSL, said.

Moreover, amidst Indonesia's ban on nickel ore exports and its push for foreign direct investments (FDI) into downstream facilities, JSL stands poised to capitalize on the evolving landscape, with plans to equally share profits from its Indonesian facility and secure 100 percent off-take rights. The company also plans to invest Rs 100 crore to revitalize the newly-acquired Chromeni facility, aiming to make it operational within the next six months.

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