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."

Keywords –

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 –

Next Story
Infrastructure Energy

REC Transfers HVDC Project to Power Grid

REC Limited has successfully handed over the Special Purpose Vehicle (SPV) for a High-Voltage Direct Current (HVDC) transmission project to Power Grid Corporation of India Limited (PGCIL). This strategic move aligns with the nation's objectives to strengthen its power transmission network. Key Highlights: Project Overview: The HVDC project, under the inter-state transmission system (ISTS) initiative, is a critical component of India's push toward robust and efficient electricity transmission. It aims to handle bulk power transfer across long distances while ensuring minimal losses. Role of RE..

Next Story
Infrastructure Transport

NF Railway Collaborates with IIT Guwahati

The Northeast Frontier (NF) Railway has signed strategic Memorandums of Understanding (MoUs) with IIT Guwahati to foster technological advancements and improve railway operations in the region. This partnership focuses on innovative solutions to enhance safety, efficiency, and sustainability in rail infrastructure. Key Highlights: Purpose of MoUs: The collaboration aims to leverage IIT Guwahati's expertise in technology and research for implementing cutting-edge solutions across railway operations. Key areas of focus include: Automation and digitization in maintenance. Sustainability initiati..

Next Story
Infrastructure Transport

Danapur Division Modernization Plans Revealed

The Railway Board has unveiled ambitious plans for the expansion and modernization of the Danapur Division, a critical hub under the East Central Railway. The initiative focuses on infrastructure development, enhanced passenger amenities, and operational efficiency. Key Highlights: Scope of Modernization: The Railway Board's blueprint emphasizes: Upgrading existing infrastructure to accommodate more passenger and freight traffic. Improving station facilities, such as platforms, waiting areas, and connectivity. Introducing advanced signal systems for safer and smoother operations. Freig..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000