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New Delhi, June 24 Jindal Stainless Ltd, the country’s largest stainless steel maker, is looking at a ₹650-crore capex as it plans to ramp up value-added and speciality product making capacities. The company is also exploring investment opportunities in the renewables segment.
According to Abhyuday Jindal, Managing Director, Jindal Stainless, the brownfield expansion include a ₹450-crore project for a “3x expansion” of its precision strip capacity in Hisar: To be carried out in two phases, the plant capacity is expected to increase to 60,000 tonnes per annum against the exist 22,000 TPA.
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Indian players could lose out to China, Indonesia, says Managing Director“We have successfully commissioned a 26,000 TPA capacity in the first phase of this expansion in Q3FY22, taking the current total capacity to 48,000 TPA. This will strengthen our presence in segments such as auto, process industry, and oil & petrochemicals,” he told BusinessLine, adding that the expansion will “also catalyse our offerings to niche segments like aerospace and electric vehicles.
Blade steel capacity
The second capex plan is for a “1.7x expansion” of blade steel capacity in Hisar – to 24,000 TPA, up from 14,000 TPA at an estimated cost of ₹200 crore. “We are among world’s leading razor blade steel producers with a majority market share, globally. This expansion will help further consolidate our position,” he explained.
This apart, the company is also focussing on leveraging the existing infrastructure “to its optimum capacity” at Jajpur where plans are afoot “to double the melt capacity” to 2.1 million tonnes per annum (mtpa) from the existing 1.1 mtpa.
“Our Jajpur facility has ready infrastructure and the operations can be easily scaled up to a melt capacity 3.2 mtpa,” he said, adding that company was closely working with customers for developing new products for catering to new opportunities of stainless steel applications in emerging focused sectors like green hydrogen and ethanol,” he said.
Investing in renewables
According to Jindal, the company is also “actively working” towards “net zero carbon emissions by 2050. It is investing in the renewable energy sector to set up 300 MW solar and wind capacities in Odisha, Haryana, and Rajasthan.
“During FY22, we procured renewable energy in bulk to reduce our CO2 emissions by 3,100 tonnes, at our facilities. We continued our process improvement measures to further bring down carbon emission; power and fuel saving efforts, etc,” he said.
The merger of Jindal Stainless and Jindal Stainless (Hisar) Ltd is also on course with both the shareholders and creditors approving the ‘Scheme of Arrangement’ (for merger). The Companies will now file a second motion petition with the NCLT.
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