Mumbai, May 1 (SocialNews.XYZ) Steel manufacturer Jindal Stainless on Wednesday announced a three-pronged investment strategy worth Rs 5,400 crore as part of its plans to augment its melting and downstream capacities, the company said in an exchange filing.
The steel manufacturer has also entered into a joint venture (JV) for the development and operation of a stainless-steel melt shop in Indonesia, which has an annual production capacity of 1.2 million tonnes per annum (MTPA). The move which entails an investment of Rs 700 crore will see the melting capacity of the steel major go up by as much as 40 percent to 4.2 MTPA, according to the company statement.
The steel major further stated that it has set aside Rs 1,900 crore for the expansion of its downstream lines in Jajpur and Odisha, while it has earmarked nearly Rs 1,450 crore towards the associated upgradation of infrastructural facilities.
Besides, it has announced the signing of an agreement to acquire a 54 per cent 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 for Rs 45 crore.
The transactions also include a takeover of existing debt of Rs 1,295 crore, the company added.
"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," said Abhyuday Jindal, MD, Jindal Stainless.
Source: IANS
About Gopi
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.
When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.
He can be reached at gopi@socialnews.xyz