Jindal Stainless Ltd | Latest market updates

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Massive Expansion Plans Worth Rs.5,400 Cr For Jindal Stainless Announced

Jindal Stainless is set to invest Rs 5,400 crore for expansion and has formed a joint venture to establish a stainless steel melt shop in Indonesia.

Jindal Stainless Ltd, a leading producer of Stainless Steel flat products in India, manufactures diverse grades for sectors like automotive, railways, construction, and consumer goods. With plants in Odisha and Haryana, its Jajpur, Odisha facility’s stainless steel capacity rose to 2.9 MTPA from 1.9 MTPA. Additionally, Jindal Stainless Hisar Ltd (JSHL) in Haryana has a steel melting capacity of 0.8 MTPA. Annually, the company’s shares have delivered a significant return of over 148% on the National Stock Exchange, showcasing impressive multi-bagger growth.

Rs.5400 Crore Investment

Jindal Stainless Steel Ltd (JSL) announced a Rs.5,400 crore investment plan to enhance production capacity and pursue acquisitions. Their strategy, spanning three years, combines organic and inorganic expansions which includes forming a joint venture with a Singapore company to establish a stainless-steel melt shop in Indonesia, with an annual capacity of 1.2 MTPA. Over the next two years, Jindal Stainless will invest Rs.700 crore in this venture, boosting its melting capacity to 4.2 MTPA, an increase of over 40%.

Additional Expansion Plans

Additionally, the company will invest around Rs.1,900 crore to expand its downstream lines in Jajpur, Odisha, to accommodate an increased melting capacity. Approximately Rs.1,450 crore will be allocated for upgrading infrastructure such as railways, sustainability projects, and renewable energy projects. Jindal Stainless also intends to acquire a 54% equity stake in Chromeni Steels Private Limited (CSPL) through a structured indirect acquisition, totaling about Rs.1,340 crore, covering both equity and debt. CSPL operates a cold rolling mill with a capacity of 0.6 MTPA in Mundra, Gujarat.

Conclusion: By investing in the facilities and enhancing infrastructure, Jindal Stainless is strategically positioning itself for future growth and operational efficiency. The improvements in logistics will not only support the planned volumes but also contribute to smooth operations and cost-efficiency. This approach emphasizes the company’s commitment to meeting rising demand while optimizing its supply chain capabilities. Overall, these initiatives demonstrate Jindal Stainless’ dedication to staying competitive and ensuring sustained success domestically and globally as well.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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Jindal Completes Acquisition of Remaining Stake In Chromeni Steel

Jindal Stainless Limited has announced that it has acquired the remaining 46% stake in Chromeni Steels Private Limited(CSPL) for Rs.278 crores.

Jindal Stainless Limited is an Indian stainless steel maker headquartered in New Delhi. It is a part of the OP Jindal group. The firm has a melt capacity of 2.9 million tonnes per annum which makes it the largest stainless steel producer of India. Incorporated in 1970, Jindal Stainless Limited ranks among the top 5 stainless steel makers in the world.

Jindal Stainless Buys remaining 45% stake in CSPL

Jindal Stainless announced on Monday its acquisition of the remaining 46% stake in Chromeni Steels Private Ltd (CSPL) for Rs 278 crore. This transaction marks CSPL as a wholly-owned subsidiary of Jindal Stainless Ltd (JSL) effective from June 15, 2024, as per JSL’s release.

Previously, Jindal Stainless had acquired a 54% equity stake in CSPL through an indirect acquisition for Rs 1,340 crore. With this latest acquisition, the total investment by JSL in CSPL amounts to approximately Rs 1,618 crore. The acquisition strategy underscores Jindal Stainless’ commitment to strengthening its presence and operations in the steel sector, leveraging synergies, and consolidating its market position.

Jindal Stainless CEO on this Acquisition

JSL’s CEO, Tarun Kumar Khulbe, expressed that acquiring a 100% equity stake in Chromeni would elevate the company up the value chain. He emphasized that with the imminent operational status of the facility, this strategic step would enable them to leverage the strong domestic demand, growing at a rate of 7-9% annually. Meanwhile, CSPL possesses a 0.6 MTPA cold rolling mill situated in Mundra, Gujarat, adding to its strategic assets.

Conclusion

JSL’s acquisition of Chromeni’s 100% equity stake marks a pivotal move towards value chain enhancement. With anticipation of the facility’s imminent operational status, JSL is well-positioned to leverage the steady 7-9% annual growth in domestic demand. CSPL’s ownership of a 0.6 MTPA cold rolling mill in Mundra, Gujarat, further strengthens JSL’s strategic assets, enhancing its competitive edge in the market. The stock of Jindal Stainless currently trades at Rs.817.25 a piece up by 0.6% from its previous day’s closing price.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

3

Jindal Stainless Acquires Stake in Nickel Processing Firm

Jindal Stainless acquired Sulawesi Nickel Processing, forming a joint venture in Indonesia to boost stainless steel production and secure raw materials.

Jindal Stainless Ltd. recently announced the completion of its acquisition of Sulawesi Nickel Processing Industries Holdings Pte. Ltd. (SPIHPL), a Singapore-based company. This deal was finalized on June 28, 2024, making SPIHPL a wholly-owned subsidiary of Jindal Stainless, as mentioned in the company’s exchange filing. This acquisition is major in establishing a joint venture in Indonesia focused on the stainless steel industry.

JV in Indonesia

The newly formed joint venture in Indonesia aims to invest in, develop, construct, and operate a futuristic stainless steel melt shop. This venture is expected to strengthen Jindal Stainless’s capacity and boost its presence in the global stainless steel market. The acquisition of SPIHPL will help in securing the necessary raw materials and accelerating project timelines, which are crucial for maintaining a competitive edge in the industry.

Management Commentary

Abhyuday Jindal, Managing Director of Jindal Stainless, emphasized the importance of the joint venture by highlighting the benefits of this collaboration, stating, “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.” This brings out the company’s plans to leverage global opportunities to amplify its production capacity and market reach.

Domestic and Export Capacity

The integration of SPIHPL and the establishment of the Indonesian melt shop are expected to boost Jindal Stainless production lines in Jajpur, Odisha which will not only cater to the growing domestic demand but also boost the company’s export potential. By ensuring a steady supply of raw materials and bettering production timelines, Jindal Stainless seems set to deliver value to its customers both in India and abroad.

Conclusion: The acquisition of Sulawesi Nickel Processing Industries Holdings Pte. Ltd. and the formation of a joint venture in Indonesia marks a milestone for Jindal Stainless. With these developments, the company is well-positioned to meet the increasing demands of its domestic and international clientele.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.