Jindal Stainless announces Rs 5,400-cr strategic investments, capacity expansion to 4.2 MTPA

The manufacturer’s expansion and acquisition plans are part of its efforts to augment melting and downstream capacities, the exchange filing said.

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26 Aug, 2025 12:21

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Stainless steel manufacturer Jindal Stainless on May 1 announced three-pronged investment strategy worth Rs 5,400 crore as part of its objective to attain global leadership in stainless steel, the company informed the exchanges.

As part of the company's expansion strategy, the steel manufacturer entered into a joint venture for the development and operation of a stainless-steel melt shop (SMS) in Indonesia with an annual production capacity of 1.2 million tonnes per annum (MTPA). Jindal Stainless plans to invest Rs 700 crore in this partnership which the company said would increase its melting capacity by over 40 percent to 4.2 MTPA.

Jindal Stainless also announced investment of Rs 1,900 crore for expansion of its downstream lines in Jajpur, Odisha with an aim to increase its melting capacity. Moreover, the company earmarked Rs 1,450 crore for associated upgradation of infrastructural facilities, such as railway siding, sustainability-related projects, and renewable energy generation.

Addressing a press conference, Managing Director Abhyuday Jindal said both the projects would be operational in the next two years. Meanwhile, funding for the total investment would mostly be done through internal accruals, he added.

Additionally, the company said it would acquire a 54 percent 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. Jindal Stainless said the transactions entail an outlay of around Rs 1,340 crore, comprising a takeover of existing debt of around Rs 1,295 crore and a balance of around Rs 45 crore towards equity purchase.

"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,” said Jindal.

The manufacturer’s expansion and acquisition plans are part of its efforts to augment melting and downstream capacities.