Once the merger of Indian companies Jindal Stainless Hisar Limited and Jindal Stainless Limited is completed, fresh capital expenditure to the tune of $416 million will be incurred to expand capacities of the various facilities of the merged entity, a Jindal Stainless company official said on Wednesday, February 24.
The capex of the merged company will be spread over a period of three years, the official said.
“The capex would be funded through internal accruals of the merged company, and this will include Jindal Stainless Limited Odisha plant’s capacity from 1.1 million mt to 2.2 million mt per year,” Abhyudhay Jindal, managing director of Jindal Stainless, said.
“For the last few years, we focused on improving our supply chain. It was becoming difficult to play on cost in the last few years due to cheap imports hitting the market, so we had to focus on logistics, last-mile delivery, and other supply chain parts. But now it is the right time to look at capacity expansion since demand is up,” Mr. Jindal said.
The boards of the two companies have already approved the merger of Jindal Stainless Limited and Jindal Stainless Hisar Limited with the merged entity to become one of the 10 largest stainless steel manufacturers in the world.