Andhra Pradesh based Cronimet Alloys India Limited, formerly known as GMR Ferro Alloys & Industries Limited, has entered into a Memorandum of Understanding with JSL Stainless Limited, a subsidiary of the OP Jindal Group.

Cronimet is engaged in the manufacture of high carbon ferrochrome for use in the stainless steel industry and both companies have agreed to join hands on a long term basis for purchase and sale of ferrochrome.

JSL Stainless Limited would be purchasing per month, at least 2000 tonnes of high carbon ferrochrome lumps from Cronimet. The company plans to sell 80% of the total production of ferrochrome to JSL Stainless Limited.

The agreement shall come in force from January 1st 2012 for a minimum period of 12 months. While the MOU is entered for quantity agreement, the price will be decided on monthly basis. Based on the current market prices, the annual revenue to the Company from the supply of high carbon ferrochrome under this MOU will be approximately INR 150 crores.

Mr Prashant Boorugu MD of Cronimet Alloys India Limited said that that "We are happy to announce our MoU with JSL Stainless Ltd as this tie up will help us to improve our production in terms of volumes. We plan to sell 80% of our total production of ferrochrome to JSL Stainless Ltd, which in turn will increase the demand to raise production. The new venture will surely help us to become the market leader in manufacturing high carbon ferrochrome."