Leading stainless-steel manufacturer Jindal Stainless Ltd has commissioned a 1.2 million tonnes per annum (MTPA) stainless steel melt shop (SMS) in Indonesia, developed through its joint venture, ahead of schedule. This development comes less than two years after the company announced a 40% expansion in its melting capacity.
Capacity expansion across facilities
Complementing the enhanced melting capacity, the company is set to commission a 1.1 MTPA Hot Rolled Annealed Pickled (HRAP) line and 0.17 MTPA cold rolling capacity at its Jajpur facility in Odisha by Q4FY27 and Q2FY27, respectively.
These developments are part of an earlier announced capital expenditure plan of ₹1,900 crore aimed at strengthening its downstream capabilities.
Fresh investments in cold rolling
To further augment its cold rolling capacity, the company has earmarked an additional ₹900 crore investment at its Hisar and Kharagpur units, expected to be commissioned by Q2FY28.
The expanded facilities will enable the production of thinner cold rolled products, catering to high-growth sectors and evolving market requirements.
Growth in downstream share
Following the expansion, the company’s cold rolling capacity is projected to increase from 2.05 MTPA in FY26 to 2.67 MTPA by FY28, an addition of 0.62 MTPA.
Once all downstream projects are completed, cold rolling capacity is expected to account for 64% of total melt capacity, reflecting a strategic shift towards higher value-added products.
Volume growth outlook
With simultaneous expansion of melting and downstream capacities, the company is targeting sales volumes of 3.5 MTPA by FY29, implying a double-digit compound annual growth rate over the next three years.
“While expanding our production footprint, we are equally focused on enhancing value addition through a stronger portfolio of thinner cold-rolled products. Collectively, these efforts will enable us to better serve evolving market needs and reinforce our position on the global stainless-steel map,” Jindal Stainless, Managing Director, Abhyuday Jindal.
“Our capacity and production enhancements are in line with the robust domestic potential of our country. With the activation of new capacities, we will unlock the next phase of growth for Jindal Stainless, strengthening our vision to build world-class capabilities in stainless steel,” Jindal Stainless, Chief Executive Officer, Tarun Khulbe.