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New Delhi, November 30 Merger of Jindal Stainless (Hisar) Ltd (JSHL) into Jindal Stainless Ltd (JSL) is expected to be completed by this fiscal-end, Abhyuday Jindal, Managing Director, JSL, said.
Post-merger, Jindal Stainless will be one of the largest stainless-steel manufacturers in the world, amongst the top 10 global players. Jindal Stainless will be the single listed entity on the stock exchanges and the promoter holding will be 57 per cent, while the remaining 43 per cent will be held by the public.
The consolidated stainless-steel entity will have a total capacity of 1.9 million tonnes per annum (mpa). The combined turnover (JSL and JSHL) was ₹33,620 crore.
“Merger will result in the seamless integration of high volumes and niche offerings across various segments. And also, a stronger financial position for the single entity. The merger is expected to be completed by the end of this fiscal,” Jindal told businessline.
Abhyuday Jindal on the company’s plans
Profit down
Jindal Stainless (Hisar) Ltd reported a 46 per cent drop in standalone net profit to ₹181 crore for the quarter ending September 30, 2022 and a .standalone revenue of ₹3,448 crore in Q2FY23. On the other hand, Jindal Stainless reported a 48 per cent drop in standalone net profit to ₹189 crore, and a net revenue of ₹5,442 crore.
“There will be approximately ₹1,050 crore of debt (in JSHL) which will be written off post-merger. JSL will have a much stronger balance sheet, cross holdings will reduce and there will be a simplified holding structure,” he said.
Switch to green energy
According to Jindal, plans are afoot for setting up a 300-MW solar and wind capacity at Odisha, Haryana and Odisha. This is a part of the company’s planned shift from thermal energy intensive manufacturing set-up to renewable alternatives. The projects should be ready over the next two years.
The 300 MW of hybrid renewable energy projects to supply power, on a round-the-clock basis, by FY24 alone is capable of reducing 16.75 lakh of CO2 per annum, and the installation of a 6.1 MW floating solar plant is capable of reducing 11,051 tonnes of CO2. The planned green hydrogen project of 790 NM3/Hr is capable of reducing 25,000 tonnes of CO2.
Reduction of CO2 emissions will happen across both the facilities – at Jajpur and Hisar.
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