Team News Riveting
New Delhi, July 29
The Board of Directors of Jindal Stainless (Hisar) Limited (JSHL) approved a brownfield expansion plan to leverage its leadership position in specialty products, thereby enhancing its product mix and augmenting
market reach.
The company said in a statement that the expansion of Specialty Products Division (SPD), with an estimated capital expenditure of Rs 450 crore, is planned to be rolled out in two phases. First, the expansion of precision strip capacity. This is planned to go from the current capacity of 22,000 tonnes per annum (TPA) to 60,000 TPA in two phases. It would strengthen the Company’s presence in segments such as Auto, Process Industry, and Oil & Petrochemicals, and also cater to niche segments like Aerospace and Electric Vehicles. The estimated capital expenditure for this project is Rs 250 crore and includes the
earlier announced expenditure of Rs 190 crore. After the first phase of expansion by Q2 FY22, the total capacity would stand at 48,000 TPA.
Second, the expansion of blade steel capacity: This will go from the current capacity of 14,000 TPA to 24,000 TPA in two phases. After the first phase of expansion by Q2 FY23, the total capacity would stand at 20,000 TPA. JSHL is among world’s leading razor blade steel producers with a majority market share, globally. The expansion will help further consolidate its position. Estimated capital expenditure for this project is Rs 200 crore.
The financial results of JSHL for First Quarter of the Financial Year 2021-22 (Q1FY22) were taken on record by its Board of Directors here today. JSHL’s sales volume stood at 151,121 tonnes, registering an increase of 219 per cent over corresponding period last year (CPLY). EBITDA and profit after tax (PAT) of the company stood at Rs 382 crore and Rs 240 crore respectively. Focus on deleveraging continued and JSHL successfully reduced net debt by Rs 708 crore since March’20, which stood at Rs 1,292 crore as of June 30, 2021.
