Jindal Stainless Acquires Full Stake in Chromeni Steel

India’s Jindal Stainless Limited (JSL) has completed the acquisition of the remaining 46 percent equity stake in Chromeni Steel Private Limited (CSPL), the company announced on Tuesday, June 18. This move consolidates JSL’s ownership of CSPL, making it a wholly-owned subsidiary within its portfolio.

The acquisition, valued at approximately $34 million, follows JSL’s earlier purchase of a 54 percent stake in CSPL for $162 million. With this transaction, JSL aims to strengthen its position in the stainless steel segment and enhance its capabilities in meeting growing domestic demand.

Tarun Kumar Khulbe, CEO of Jindal Stainless Limited, emphasized the strategic importance of the acquisition, highlighting its potential to elevate JSL’s position in the value chain. “The acquisition of a 100 percent equity stake in Chromeni will help us climb the value chain. We anticipate the facility to become operational soon, allowing us to capitalize on robust domestic demand, which is growing at a rate of 7-9 percent annually,” Khulbe stated in a company press release.

Chromeni Steel Private Limited operates a stainless steel cold rolling mill with an annual capacity of 0.6 million metric tons. Located in Mundra, Gujarat, this facility plays a crucial role in CSPL’s operations and its integration into JSL’s broader strategy.

The acquisition marks a significant milestone for JSL, positioning the company to leverage synergies and operational efficiencies across its expanded portfolio. By integrating CSPL fully into its operations, JSL aims to enhance production capabilities and strengthen its market position in the competitive stainless steel sector.

Industry analysts view this acquisition as a strategic move by Jindal Stainless to solidify its presence in the rapidly growing domestic stainless steel market. With increasing demand driven by infrastructure projects, automotive manufacturing, and consumer goods sectors, JSL stands to benefit from owning a fully integrated subsidiary like CSPL.

The transaction underscores JSL’s commitment to strategic expansion and enhancing shareholder value. By completing the acquisition of Chromeni Steel, JSL reinforces its position as a key player in India’s stainless steel industry, poised to capitalize on future growth opportunities.

Looking ahead, JSL plans to optimize operations at CSPL’s Mundra facility and integrate it seamlessly into its existing network. The company aims to leverage CSPL’s production capabilities to meet rising market demand effectively while maintaining high standards of quality and service.

In conclusion, Jindal Stainless Limited’s acquisition of Chromeni Steel Private Limited represents a strategic step towards strengthening its market position and expanding its footprint in the stainless steel industry. With a fully owned subsidiary under its wing, JSL is well-positioned to capitalize on India’s growing demand for stainless steel products across various sectors.