Jindal buys steel plant in Indonesia

Steel major Jindal Stainless on Tuesday announced the acquisition of a cold rolling plant in Indonesia for a consideration of $32 million [about Rs 150 crore (Rs 1,500 million)].

"We have signed an MoU with PT Maspion Stainless Steel on asset acquisition basis and the deal will be completed in the next two months. The plant has a capacity of 50,000 tonnes annually," Ratan Jindal, vice chairman and managing director of Jindal Stainless Steel, told reporters in New Delhi.

Jindal has also planned to double the capacity to 1 lakh tonnes envisaging an investment of additional $12 million and the work for this would start immediately after the plant's acquisition.

Asked about the funding, Jindal said: "Of the total cost, which may run up to $50 million ($32 million for acquiring, $12 million for expansion and $7 million towards working capital), about $12 million would be the equity to be funded by Jindal Stainless and balance would be raised through debts."

The company has already got in-principle commitment from various existing lenders to the company including Standard Charted Bank, EXIM Bank and ICICI bank, Jindal said, adding the equity part would be funded through internal accruals.