Business

Jindal Stainless to float new subsidiary in Singapore

NEW DELHI: Jindal Stainless Ltd. (JSL)has announced its decision to float a new subsidiary, Jindal Venture PTE Ltd., in Singapore that will control all its global mining operations.

JSL Chairman and Managing Director Ratan Jindal on Wednesday unveiled a new corporate identity — JSL Ltd.

Talking to newsmen here, he said the company was looking to secure raw material resources abroad as it had entered into a tie-up with Indonesia’s Antam for nickel smelting. It would also set up a ferro-chrome plant in Vietnam as it looked for resources across the globe. “We are looking across the globe to secure raw material reserves like nickel, ferro-chrome, ferro-manganese, coal and iron ore a step towards backward integration. We will set up a subsidiary in Singapore and keep all our global mining assets in it,” he said. The Singapore arm will be listed on the bourses there in the next 3-4 years, he added.

Mr. Jindal said nickel prices had come down by 40-50 per cent globally over the past 12-18 months.

It was reflected in the prices of our products as the company had cut the prices accordingly.

“I see nickel stabilising now and, thus, no change in our prices in the near future,” he said.

The stainless steel maker expects a 20-per cent growth in its net profit and sales this fiscal and it also sees contribution of exports to sales coming down to 25 per cent from 35 per cent.

To cater to the growing demand of steel, the company has targeted a 1.6-million tonne output of the metal by the end of 2008-09 from its two units in the country and has earmarked a capital expenditure of over Rs. 10,000 crore for the purpose.

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