Jindal Stainless, on Wednesday, announced its entry into a joint venture with a Singapore-based company to develop and operate a stainless steel melt shop (SMS) in Indonesia. The company further announced that it will invest around rupees 1,900 crores to expand its downstream lines in Jajpur and Odisha to increase their melting capacity. Jindal Stainless will also acquire a 54% equity stake in Chromeni Steels Private Limited (CSPL).

Abhyuday Jindal, Managing Director of Jindal Stainless, said, “With these acquisitions and investments, they have orchestrated a clear growth plan to become one of the leading players in the world.” He further added that this is a plug-and-play model, and there will be good growth in three years.

The company also addressed that although Jindal Stainless already has a facility in Indonesia, this will be a completely separate facility that will be operational in 2 years. The government of Indonesia promotes Foreign Direct Investment (FDI) and they would get a secure availability of raw materials and increased production efficiency in Indonesia.

“The Government of Indonesia has banned the export of nickel ore and is promoting investments into downstream facilities through long-term tax holidays. The acquisition of Chromeni supports our strategy to increase cold rolled products in our product mix.” said the CEO & Wholetime Director, Tarun Kumar Khulbe. Anurag Mantri, Executive Director & Group CFO, said these investments will especially contribute to the overall balancing of their downstream cold-rolled capacities, bringing them closer to the global benchmarks.