Jindal Stainless' Expansion Plans Include Production Capacity, Logistics, Power

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Researched by Industrial Info Resources (Sugar Land, Texas)--India's Jindal Stainless will invest $1.4 billion to build an 800,000-ton-per-annum (TPA) stainless steel plant at its site in Jajpur, Orissa. The plant will be commissioned by 2012. This project will be Phase II of the company's development of production at Jajpur. Jindal has already invested $560 million in the 800,000-ton first phase at Jajpur.

Indian and foreign banks will fund $800 million, and $250 million will come from external commercial borrowing. Internal accruals will contribute $300 million, and promoters will put up $50 million to make up the total capital required.

An expansion of the company's plant at Hissar in Haryana will take an investment of $100 million and will raise cold rolling capacity from 275 million TPA to about 400,000 TPA. This investment will come mainly from internal cash flow. With the new capacity from the two 800,000 TPA expansions in Orissa, the company will have a total production capacity of 2.5 million tons of stainless steel by 2012 which will put it in the front rank of global producers.

Jindal is also planning to expand its ferro-chrome unit in Vietnam from 60,000 TPA to 200,000 TPA. Service centers will be set up globally after success with this concept in Gurgaon and Bombay. Two more of the centers, designed to meet specific requirements of the consumer durables and automotive industries. In India, centers are planned for Gujurat and Chennai.

The company is also planning to enter the logistics and power sectors. Jindal Infrastructure & Utility Limited will enter the logistics sector with its own fleet of trucks and will provide steel for power projects and designs for projects, such as airport upgrades. Jindal Stainless will invest $125 million in developing the new company. A 250-megawatt power plant will be set up in Orissa. The company has 40% market share for stainless steel in India and is part of the $8 billion Jindal Organisation.

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