- 28 Mar 2025
- ICICIdirect Research
JINDAL STAINLESS IS PLANNING TO INVEST ₹40,000 CRORES FOR SETTING UP STAINLESS STEEL MANUFACTURING PLANT
JSL - 583 Change: 16.55 (2.92 %)News: As per media sources, Jindal stainless is planning to invest ₹40,000 crores for setting up stainless steel manufacturing plant in Maharashtra. This investment is for a period of next 10 years. Moreover, this new facility will have a total melting capacity of 4 million tonnes per annum, constructed in phases with first phase is expected to be operational in next 4 years.
View: From media sources, this facility will focus on producing specialised grades for critical applications in emerging sectors such as hydrogen, nuclear energy, defence, mobility, infrastructure, and process industries. Notably, it’s also undergoing ₹5,400 crores capex for expanding capacity by over ~40% to 4.2 MTPA and augmenting downstream capacities by enhancing value-added products, which caters to both the domestic and export segment. Thus, from a long-term perspective, we have a positive view on the stock given the inherent benefits of stainless steel such as low maintenance, and low life cycle cost, as well as healthy demand prospects in infrastructure and consumer durable, and significant capacity expansion in pipeline.
Impact: Neutral