| At a recent analyst meet, the company disclosed, Rs 450 crore would be spent on increasing melting and slab casting facility, increasing value-added products as well as capacity expansion. |
| According to the business plan, the return on investment for the project would be 20-30 per cent. |
| However, the expansion would still fall short of Jindal Stainless' cold-rolling facility requirement. Stainless steel facilities at Hisar, on completion of ongoing expansion, would be 600,000 tonne of melting, 750,000 tonne of hot rolling and 250,000 tonne of cold rolling facilities. |
| Company officials explained that this was primary reason behind the acquisition. Expected turnover through Indonesia subsidiary was $80-90 million. |
| Total stainless steel cold-rolled flat products in South East Asia was around 550,000 tonne, which was expected to grow at 8-10 per cent. Moreover, the Indonesian market had domestic stainless steel consumption of 75-100,000 tonne per annum. |
| Also, there were no stainless steel plants in the region comprising countries such as Australia, Malaysia, New Zealand, Philippines, Singapore, Vietnam and Indonesia. |
| The other advantage was import duty within ASEAN region was 50 per cent of normal duty and Jindal Stainless was looking diversifying its export basket. |
| Currently, 50 per cent of Jindal Stainless sales goes to export market, of which 80-85 per cent is to China. Back home, Jindal Stainless was on a major expansion spree and the company had lined up a ferro alloys project in Orissa for Rs 950 crore funded by a debt-equity ratio of 2:1. |
| The company has also planned a power plant in Orissa for captive use in the ferro alloys project. |
| Jindal Stainless proposed to set up a 125 mw coal-based power plant with backward linkages to coal mines at an estimated cost of Rs 450 crore. |
| The Jindal Stainless scrip today closed at Rs 78.70 on Bombay Stock Exchange and at Rs 79 on the National Stock Exchange. |
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