Posted on 24 Jul 2023
Jindal Stainless (JSL) completed the acquisition of Jindal United Steel (JUSL) on 20 July. Earlier, JSL had held a 26% stake in JUSL. It has now acquired the remaining 74% equity stake in JUSL for a cash consideration of INR 958 crore ($116.88 million).
The transaction makes JUSL a 100%-owned subsidiary of JSL, the latter informs in a press release seen by Kallanish.
"Given the strong outlook on stainless steel and the association of JUSL and JSL, the board of directors of JSL decided to consolidate all the critical facilities of stainless-steel manufacturing under one umbrella," says JSL managing director Abhyuday Jindal. This acquisition would result in improved synergies between both companies and a preferred governance structure, thereby enhancing value for all stakeholders."
JUSL has been operating a hot strip mill (HSM) of 1.6 million tonnes/year capacity and a cold rolling mill of 200,000 t/y capacity. It is also undergoing capacity expansion up to 3.2m t/y at Jajpur, Odisha.
JSL is India’s leading stainless-steel manufacturer, with an annual melt capacity of 2.9 million tonnes and an annual turnover of INR 35,700 crore in the fiscal year that ended 31 March 2023 (FY23). It has two stainless steel manufacturing facilities in India, in the states of Odisha and Haryana, and an overseas unit in Indonesia, serving the markets of Southeast Asia and nearby regions.
Source:Kallanish
