Leading domestic stainless steel maker Jindal Stainless Ltd (JSL) will invest an additional Rs 50 billion in its Orissa plant to double its production capacity to 1.5 million tonnes annually.
The company is also looking at the possibility of tapping the market through a public issue to part fund the expansion plans.
"We are planning to make fresh investments of around Rs 50 bn in our Jajpur plant in Orissa, which would double our overall production capacity," JSL Chief Executive officer and Managing Director VS Jain said.
When asked how would the company fund its expansion plans, Jain said: "The project would be funded mainly through internal accruals but in case need arises we would also tap the market." The expansion plan, expected to be completed in 36 months, would take JSLs overall production capacity to 1.5 million tonnes per annum from the present 0.7 million tonnes.
The company presently operates through its three plants in Hisar, Visakhapatnam and Jajpur.
JSL expects Hisar plant's capacity to touch 0.6 million tonnes this year while the Jajpur plant is presently operating at around 0.1 million tonnes per annum.
JSL has already invested Rs 23 bn in setting up a greenfield facility in Jajpur. The first phase of investment, scheduled to be completed this year, was made to install basic input requirements including a ferro-chrome unit and a captive power plant at the facility.