Jindal Stainless plans Rs 6,000 crore expansion, also plans entry into logistics and power

Aiming to become one of the largest stainless steel makers in the world, Jindal Stainless plans to spend Rs 6,000 crore over the next two years to expand its manufacturing capacity which would take the total capacity to 2.5 million tonne by 2012. The company has already spent Rs 2,250 crore for 0.8 million tonnes capacity in phase-I at Jajpur. With new capacity being planned in two phases of 0.8 million tonnes each in Orissa, the total capacity of the company would be 2.5 million tonnes by 2012, making Jindal one of the largest integrated stainless steel manufacturers in the world.

Jindal Stainless Ltd also plans to set up an independent power project and a foray into the logistics sector. The company is setting up a separate firm named Jindal Infrastructure & Utility Ltd, under which both the power and infrastructure divisions will function. It will also provide stainless steel designs for projects such as airport up gradation.

Additionally, Jindal Stainless also plans to invest $100 million in a wholly owned mining and metal subsidiary in Singapore for buying mineral resources. In order to strengthen raw material supplies, it would be looking for chrome, nickel, manganese, coking and thermal coalmines. The Singapore subsidiary would be the holding company for the special purpose vehicles formed for acquiring mining assets.