Jindal Stainless Ltd (JSL), the country’s largest stainless steel maker, is eyeing a near doubling of capacity to 2.9 million tonnes per annum (mtpa), at an estimated capex outlay of ₹2,600 crore.
The capacity expansion plan will take place across facilities of Jindal Stainless at the Jajpur and Hisar facilities of Jindal Stainless (Hisar) Ltd (JSHL). Merger of JSHL into JSL is expected by end of this fiscal and capacity addition will be completed around that time.
According to Abhyuday Jindal, Managing Director, JSL will nearly double melting capacity from 1.10 mtpa to 2.1 mtpa by this fiscal-end. In Hisar, the precision strip capacity is being expanded three fold, from 22,000 tonnes per annum to 60,000 tonnes per annum; while blade steel capacity is being expanded to 24,000 tonnes per annum from the existing 14,000 tonnes, up by nearly 1.7 times.
Among top 10 globally
“Currently, Jindal Stainless has a combined stainless steel melting capacity of 1.9 mtpa at its Hisar and Jaipur plants. By end of FY23, the total melting capacity will stand at 2.9 mtpa, thereby making us one of the top 10 players globally,” he told businessline during an interview.
Jindal Stainless is already one of the top suppliers of blade steel (steel used in making safety razor blades) with its clientele including P&G (makers of Gillette and 7 O’ clock). JSL and JSHL had a combined turnover of ₹32,620 crore in FY22.
According to Jindal, post capacity expansion, the company would look to secure own resources, particularly ferro chrome and nickel mines. Currently the two key raw materials are sourced from auctions and in the open market; while steel requirements are met through purchase of scrap.
It would also be open to acquisition of other smaller stainless steel and steel players. “Earlier we were not much active in the acquisition space. But now, we are open to securing assets in India be it mines or even other smaller stainless steel and steel players. We are looking at backward integration to bring in economies of scale,” he added.
The company, Jindal said, was also open to bidding for SAIL’s stainless steel entity, if the opportunity comes up. “In the immediate short term there is nothing on the table. But we will not shy away from placing bids if there’s an opportunity,” he said.