Jindal Stainless Limited Announces Mega Expansion Plans
The Board of Directors of Jindal Stainless Limited have approved a brownfield expansion plan for JSL to leverage ready availability of world class infrastructure in Jajpur, such as land, roads, railways, utilities etc. The estimated capex of this brownfield expansion is INR 2,150 crore, which is less than one-third of greenfield capex cost for the corresponding enhancement. JSL Managing Director Mr Abhyuday Jindal said “Our plan for the near future is unleashed today; we , are going to double our melt capacity in the next 18 months. The expansion will strengthen our ability to serve domestic and international customers across different market segments. With the post pandemic recovery, rigorous internal efficiencies, ongoing merger, and slated expansion plan JSL is geared to maximise the value for all its stakeholders.''
The three-pronged expansion plan constitutes expansion of melting capacity, and commensurate strengthening of backward and forward linkages
Melting Capacity: Expansion of steel melting capacity from existing 1.10 million tonnes per annum to 2.10 million tonnes per annum at an estimated capex of INR 530 crore. Estimated completion by Q3 of FY23.
Downstream enhancement: Commissioning Combo Line for downstream expansion. 1.5x expansion of Hot Rolled Annealed Pickled capacity and 1.7x expansion of Cold Rolled Annealed Pickled capacity. HRAP and CRAP capacities to be enhanced from 0.8 million tonnes per annum and 0.45 million tonnes per annum to 1.25 million tonnes per annum and 0.75 million tonnes per annum respectively at an estimated capex of INR 1,250 crore. Estimated completion by Q4 of FY23.
Backward integration: 1.4x expansion of Ferro chrome capacity from 0.25 million tonnes per annum to 0.35 million tonnes per annum to scale up backward integration and cost efficiency at an estimated capex of INR 315 crore. Estimated completion by Q3 of FY24
Remaining capex will be expended on enhancing quality assurance for new generation grades in high-end segments, balancing of units, and other necessary improvement activities.