Jindal Stainless plans to invest Rs. 15 billion to expand capacity.

Leading stainless steel maker Jindal Stainless Ltd. plans to invest Rs. 15 billion to expand the capacity of its Steel Melting Shop (SMS) from 0.8 to 2.2 million tonnes per annum (mtpa) and double its cold roll mill capacity from 0.8 to 1.6 mtpa.

“We are seeking environment clearance for 2.2 million tonne per annum (mtpa) of the SMS. Without much investment, we will reach 1.1 mtpa by next year and 2.2 mtpa in another two years. We will be expanding in two phases. Though we've sought approval for 2.2 mtpa, we're looking at an operational capacity of 1.6 mtpa,” a company source said.

However, the expansion of the SMS will depend on the behaviour of the market, he added.

With all the infrastructure already available at its Kalinganagar facility, the incremental cost to the company for pursuing expansion will be lower.

BS