Jindal Stainless, led by Abhyuday Jindal, has increased 79 per cent its capital expenditure for this fiscal to ₹2,500 crore against ₹1,400 crore spent in FY23.
The company intends to fund the capex through internal accruals.
A major portion of the capex would be for hiking stakes in the recently acquired company in Indonesia and acquiring new asset in India.
The company aspires to be among the top three stainless steel manufacturers in the world, outside of China. The company recently added one million tonne per annum capacity to take its overall production capacity to about 2.9 mtpa. It intends to add another 1-1.5 mtpa to achieve the coveted slot.
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In March, JSL acquired a 49 per cent stake in Indonesia-based largest nickel producer New Yaking Pte in a deal value of $157 million (₹1,300 crore).
As part of the agreement, Jindal Stainless will invest in the development, construction and operation of a Nickel Pig Iron (NPI) smelter facility located in an industrial park in Halmahera Islands, Indonesia.
The planned smelter facility is expected to have an annual production capacity of 2 lakh tonnes of NPI (nickel pig iron) and is expected to be commissioned in two years. The acquisition will give the company a competitive advantage both in India and overseas markets.
The company is also leading in the race for acquiring debt-ridden Rathi Super Steel through the Insolvency and Bankruptcy Code to make its foray into longs.
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Abhyuday Jindal, Managing Director, JSL told businessline that the capex in this fiscal will be aligned towards the acquisition of Jindal United Steel, which will make JUSL a wholly-owned subsidiary of Jindal Stainless — besides strategic investments in the Indonesia- based RKEF (Rotary Kiln Electric Furnace) and Rathi Super Steel.
The overall investment this financial year would be about ₹2,500 crore, including capex on certain commitments for expansion sustenance, he added.
Considering the investment in acquisition and capex payments, the debt in this fiscal might increase by ₹500-700 crore from ₹2,500 crore as of March-end and would gradually reduce thereafter, said Jindal.