Jindal Stainless (Hisar) commissions Phase I of brown-field expansion at speciality products division.

Jindal Stainless (Hisar) commissions Phase I of brown-field expansion at speciality products division.

by 5paisa Research Team Last Updated: Apr 04, 2022, 12:59 PM IST

This capacity expansion takes the total precision strip production capacity to 48,000 TPA from the existing 22,000 TPA.

Jindal Stainless (Hisar) has announced that it has commissioned 26,000 tons per annum (TPA) capacity Precision Strip Mill as part of the first phase of its latest brown-field expansion plan at its Specialty Products Division (SPD).

The capacity expansion of precision strips will further strengthen the company’s presence in segments like auto, process industry, and oil and petrochemical. It will also be augmenting supplies to aerospace and electric vehicles. This capacity expansion takes the total precision strip production capacity to 48,000 TPA from the existing 22,000 TPA. 

The total capital expenditure for the brownfield expansion is estimated at Rs 450 crore over the next two years. As part of the expansion, the company plans to increase its total precision strip capacity to 60,000 tons per annum by the end of Q2FY23 with an estimated capital expenditure of Rs 250 crore.

The capacity expansion at SPD is part of the company’s plan to leverage its leadership position in speciality and value-added products. After this expansion, the operational capability will expand and products up to 650 mm width would be manufactured. This expansion will further help the company consolidate its leadership position in the international markets as well.

Managing Director of Jindal Stainless (Hisar), Abhyuday Jindal stated in a filing with the exchange, “The latest capacity addition to JSHL’s Specialty Products Division portfolio will strengthen our product mix in the value-added segment and double our share in the global production to 8%. The capacity enhancement is expected to boost JSHL’s revenues by 8-10%.” 

Jindal Stainless (Hisar) is an integrated stainless-steel manufacturer with facilities starting from melting, casting, and hot rolling to cold rolling and other value additions. It has a melting capacity of 800,000 TPA. The company’s Specialty Product Division (SPD) caters to the high-end precision and speciality stainless steel requirements of reputed Indian and international customers. This division serves the niche requirements in thinner sections for specific applications in various stainless-steel grades.

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