Jindal Stainless to invest Rs 1 bn in Rathi Super Steel for infra expansion
Steel

Jindal Stainless to invest Rs 1 bn in Rathi Super Steel for infra expansion

Jindal Stainless is set to invest Rs 1 billion in Rathi Super Steel over the next two years, aiming to expand its presence in the infrastructure sector over the medium term. Earlier this year, Jindal Stainless acquired Rathi Super Steel, which was grappling with debt issues, for approximately Rs 2 billion through the debt resolution process.

Abhyuday Jindal, the Managing Director of Jindal Stainless, shared, "This marks our initial foray into the realm of long products, primarily driven by the nation's emphasis on infrastructure development."

The company intends to enhance Rathi Super Steel's annual production capacity from its current 150,000 tonnes to approximately 200,000 tonnes. Currently, only a modest 2-5% of Jindal Stainless' product portfolio is relevant to the infrastructure sector. However, the company has ambitious plans to increase this proportion to 15-20% within the next two to three years, positioning itself as a significant player in this domain.

Jindal Stainless has historically focused on flat stainless steel products, whereas the infrastructure sector relies on long products such as wire rods, bars, and re-bars. The Rs 1 billion investment in Rathi Super Steel will be channelled toward expanding production capacity and enhancing plant quality to accommodate products essential for the infrastructure segment.

Presently, the plant primarily manufactures low-value wire rods, but Jindal Stainless aims to diversify its offerings to include bars and re-bars, which are critical components in railway, bridge, and infrastructure projects, particularly in coastal regions. Notably, the central government is contemplating the mandatory use of stainless steel in bridges near coastal areas to mitigate corrosion-related bridge weakening. Such a policy could significantly boost demand for Jindal Stainless' products, according to a senior executive within the company. The executive remarked, "As the emphasis on quality of life gains prominence, infrastructure projects will increasingly incorporate stainless steel, driving its usage higher."

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Jindal Stainless is set to invest Rs 1 billion in Rathi Super Steel over the next two years, aiming to expand its presence in the infrastructure sector over the medium term. Earlier this year, Jindal Stainless acquired Rathi Super Steel, which was grappling with debt issues, for approximately Rs 2 billion through the debt resolution process.Abhyuday Jindal, the Managing Director of Jindal Stainless, shared, This marks our initial foray into the realm of long products, primarily driven by the nation's emphasis on infrastructure development.The company intends to enhance Rathi Super Steel's annual production capacity from its current 150,000 tonnes to approximately 200,000 tonnes. Currently, only a modest 2-5% of Jindal Stainless' product portfolio is relevant to the infrastructure sector. However, the company has ambitious plans to increase this proportion to 15-20% within the next two to three years, positioning itself as a significant player in this domain.Jindal Stainless has historically focused on flat stainless steel products, whereas the infrastructure sector relies on long products such as wire rods, bars, and re-bars. The Rs 1 billion investment in Rathi Super Steel will be channelled toward expanding production capacity and enhancing plant quality to accommodate products essential for the infrastructure segment.Presently, the plant primarily manufactures low-value wire rods, but Jindal Stainless aims to diversify its offerings to include bars and re-bars, which are critical components in railway, bridge, and infrastructure projects, particularly in coastal regions. Notably, the central government is contemplating the mandatory use of stainless steel in bridges near coastal areas to mitigate corrosion-related bridge weakening. Such a policy could significantly boost demand for Jindal Stainless' products, according to a senior executive within the company. The executive remarked, As the emphasis on quality of life gains prominence, infrastructure projects will increasingly incorporate stainless steel, driving its usage higher.Keywords –

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