India’s Jindal Stainless Limited (JSL) will invest an estimated $968 million over the next two years on capacity expansion, infrastructure and acquisition, a company statement said on Thursday, May 2.
The company said that, of the total investment, around $403 million will be for expansion and upgrade of infrastructure of its existing mill in Jajpur, Odisha, around $228 million will be invested in expanding mills at other locations, and $175 million has been earmarked for upgrading railway sidings and renewable energy.
It said that around $162 million will be invested to acquire a 54 percent equity stake in Chromeni Steel Limited, which operates a 0.6 million mt rolling mill in the western state of Gujarat.
Additional investments to the tune of $84 million have already been committed to enter into a joint venture with a 49 percent equity stake in a 1.2 million mt per year stainless steel rolling mill in Indonesia.
“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,” JSL managing director Abhyuday Jindal said.
About 90 percent of the investments announced will be completed through internal accrual, while the rest will be done via borrowing, Jindal said.
