Jindal Stainless: Jindal Stainless’s big bet, 1,290 crore investment in Indonesia, know what will be the benefit

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New Delhi: India’s largest stainless steel company Jindal Stainless Limited (JSL) has taken a major step to ensure long term availability of nickel. The company will develop a 200,000 MT capacity nickel pig iron plant in Indonesia. For this, it will form a joint venture with Eternal Tsingshan. The company signed a deal in this regard on Tuesday. Under this, the company will take 49 per cent stake in this project in the next two years by investing $157 million i.e. Rs 1,290 crore. The remaining stake will be held by New Yaking Pte, a unit of Eternal Tsingshan. The company says that the strategic collaboration will benefit it from backward integration as JSL will have a stake in nickel pig iron (NPI) business. There is a plan to commission this plant within two years. It will have a total production capacity (nameplate capacity) of up to 200,000 MT NPI and will have an average nickel grade of 14%. This is the first strategic partnership by an Indian company to acquire a share of nickel reserves globally. There is a shortage of nickel ore in India.

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what would be the advantage

Commenting on the historic initiative, Mr. Abhyuday Jindal, Managing Director, Jindal Stainless, said, “This remarkable collaboration is a great opportunity for stakeholders to gain a share in nickel supplies as well as ensure raw material availability for JSL’s stainless steel operations. Price will increase. This acquisition will give JSL additional competitive advantage in the Indian and international markets.

Nickel price trends have played a significant role in the stainless steel business across the globe. In addition, geopolitical issues, logistics constraints, pandemic issues, etc. often affect the demand and supply dynamics of nickel, increasing costs and uncertainty for its user industries such as stainless steel. JSL currently meets a major portion of its nickel requirement through stainless steel scrap and NPI/Ferro Nickel and this collaboration will ensure adequate supply of NPI for JSL.

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