JSL charts Rs 5,400 crore strategic investment plan
Jindal Stainless Limited (JSL) on Wednesday announced a Rs 5,400 crore investment plan for expanding its capacity by 4.2 million tonnes per annum (MTPA). Speaking to journalists in Delhi, Abhyuday Jindal, JSL's Managing Director said this investment will be funded through internal accruals with minimal debt raise.
Company officials said JSL expects its debt to rise by Rs 300-500 crore, over the existing Rs 4,800 crore, by the end of the current fiscal due to the expansion plans.
JSL said it will be developing and operating a stainless steel melt shop (SMS) in Indonesia with an annual production capacity of 1.2 MTPA. This will increase the company’s melting capacity by over 40% to 4.2 MTPA at a Rs 700 crore investment. This investment will be made through Jindal Stainless' Singapore based subsidiary which will enter into Joint Venture (JV) with Zenith International Capital Pte. Ltd, to operate the SMS in Indonesia.
Zenith International Capital is allied with China's Tsingshan Holdings Group which is the world's largest producer of stainless steel.
JSL also said it will acquire a 54% equity stake of Tsingshan Holdings in Chromeni Steels Private Limited (CSPL), which owns a 0.6 MTPA cold rolling mill in Mundra, Gujarat. This will be through a Rs 1,340 crore structured indirect acquisition deal deal which comprises takeover of existing debt of Rs 1,295 crore and balance of Rs 45 crore towards equity purchase. CSPL has not been operational after COVID-19.
«Restarting the project will require around Rs 100 crore
