Jindal Stainless to enter power, logistics sectors
14 Mar 2008
Jindal Stainless Ltd, India's largest stainless steel producer, plans to set up an independent power project in Orissa and also enter into the logistics sector.
The company, which is setting up a separate firm, Jindal Infrastructure & Utility Ltd, for its entry in to the growing infrastructure sector, will enter the logistics sector with its own trucks.
The company will start off with logistics first and then will enter the power sector.
The new firm, which would encompass both the power and infrastructure divisions, will also provide stainless steel designs for projects such as airport up gradation.
Jindal Stainless would invest up to Rs500 crore in a phased manner for setting up the new firm.
The parent company is also planning setting up a 250-megawatt plant for its captive use in Orissa.
India plans to add 88,000 megawatts of power generation capacity over the next six years due to a rise of 11 per cent in consumer demands for electricity, according to an HSBC report in 2007.
India's electricity demand is expected to grow at 11 per cent over the next six years, according to an HSBC report last year. The country plans to add 88,000 megawatts of power generation capacity over the next six years, the report said.
Jindal Stainless is the flagship of the $800 crotre conglomerate, Jindal Organisation. The company is the largest manufacturer of stainless steel in India with a market share of 40 per cent.