In a strategic move to ensure better alignment and operational efficiency, Jindal Stainless has acquired the remaining 46% equity stake in Chromeni Steels Private Limited (CSPL). This strategic acquisition enhances Jindal’s capabilities in the steel industry, solidifying its presence in the global steel industry.
More Details:
Jindal Stainless, India’s largest stainless steel manufacturer, acquired the remaining 46% equity stake in Chromeni Steels Private Limited (CSPL) as part of a strategic move to ensure better structural and operational efficiency. The development makes CSPL a wholly owned subsidiary of Jindal Stainless, effective June 14, 2024. The transaction entails a total outlay of INR 278 crore, comprising payment towards equity transfer and payment of shareholders’ debt. Jindal Stainless had earlier acquired 54% equity stake in CSPL through an indirect acquisition deal.
CEO Stated:
Commenting on the development, CEO, Jindal Stainless, Mr. Tarun Kumar Khulbe, said, “The acquisition of 100% equity stake in Chromeni will help us climb the value chain. Since we expect the facility to be operational soon, this strategic move will enable the company to capitalise on the robust domestic demand, which is increasing at the rate of 7-9% every year, immediately. This acquisition also underscores our commitment to driving growth and maintaining our leadership in the Indian stainless steel market.”
Brief about CSPL:
- Chromeni Steels Private Limited (CSPL), which owns a 0.6 MTPA cold rolling mill located in Mundra, Gujarat, augments the capacity of cold rolled products in Jindal Stainless’ overall product mix.
- CSPL is the manufacturer of best in class stainless-steel CR coils and HR coils in 200 & 300 series.
- CSPL is one of the leading manufacturers of Hot rolled and Cold rolled coils in India.
The move to acquire Chromeni Steels will boost the capabilities of Jindal Stainless and enable them to enhance both value and scale of their products in order to cater to the increasing demand along with ensuring the best quality of their products.
Source: Jindal Stainless – Press Release | Image Credit (representational): Jindal Stainless
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