Jindal Stainless secures stake in Indonesia Nickel reserve

JSL Managing Director Abhyuday Jindal and other officials discussed the futuristic requirements of the sector, challenges faced in indigenisation and the Defence Research and Development Organisation’s (DRDO) vision for domestic manufacturers.

During the conference, Scientific Advisor to Defence Minister, Dr G Satheesh Reddy said, “I would like to congratulate Jindal Stainless for playing an active role in India’s highly paced developmental journey. The organization’s efforts in sectors of automation, quality consciousness and safety at workplace are highly appreciated. Materials and Manufacturing sectors are the pillars of Atmanirbhar Bharat and hence there is a need to identify the gaps in these se ctors and fill them with innovative technological solutions.”

Steel Insights Bureau

Jindal Stainless Ltd (JSL) has become the 1st Indian firm to secure a stake in a Nickel reserve abroad with the signing of a collaborative agreement with Indonesiabased New Yaking Pte Ltd, a Nickel pig iron company to acquire a 49 pecent stake for `1,290 crores.

The move will give JSL a strategic stake proving long-term availability of nickel through development, construction and operation of a Nickel Pig Iron (NPI) smelter facility located in an industrial park in Halmahera Islands, Indonesia. Pursuant to the agreement, JSL will acquire a 49 percent equity interest for a consideration of around `157 million.

“The strategic collaboration offers benefits of backward integration as JSL would have stake in the business of NPI. The facility is planned to be commissioned within 2 years, with an annual nameplate production capacity of up to 200,000 tons of NPI with average 14 percent Ni content.

“This is the first-ever strategic partnership entered into by an Indian company for securing stake in nickel reserves globally as India is deficient in nickel ore,” the company said. Jindal Stainless MD, Abhyuday Jindal said, “This path-breaking collaboration will enhance value for stakeholders with JSL acquiring a stake in nickel supply to create raw material security for its stainless steel operations. This acquisition will usher a sharper competitive advantage to JSL in Indian and international markets.”

The nickel price trend has been a key factor in stainless steel business across the globe. Further, geo political issues, logistical hurdles, pandemic-induced constraints etc. often affect the demand-supply dynamics of nickel, thereby increasing the cost and uncertainty for its user industries such as stainless steel. Currently, JSL meets bulk of its nickel requirement through stainless steel scrap and NPI/ ferro nickel and this collaboration will secure an ample supply of NPI for JSL.

JSL eyes higher usage in defence sector

JSL recently hosted a conference on strategic defence materials in partnership with the Ministry of Defence and the Indian Army in Hisar.

In the presence of Scientific Advisor to Defence Minister, Dr G Satheesh Reddy,

Commenting on the occasion of the first technical conference of its nature, Jindal said, “JSL is committed to empower the government’s vision to ‘Make in India for the world’ and bring the manufacturing of worldclass defence material requirements back to the nation. We are confident that Bharat has the right skills and determination to become Atmanirbhar in the defence sector and such conferences will pave the way for smoother industry-government collaboration.”

JSL’s Defence Business Head, C P Agrawal added, “The right policy reforms aimed at banning or reducing imports in certain categories, such as armour steel, will help eliminate the problems of misdeclaration of imports, and the subsequent quality and safety issues arising from the usage of lower quality material for strategic applications in the Defence and Aerospace sector. This is the need of the hour to promote indigenous manufacturing in this sector and make India the preferred supplier for the world. ”

Jindal Stainless is giving impetus to indigenous manufacturing in the defence and aerospace sector through its business unit, Jindal Defence and Aerospace (JDA).

JDA started supplying material to DRDO in FY19 for their missile programme.

JSL offers specialty steel for missile and satellite launch vehicle applications, submarine rocket launchers, armour steel, and high nitrogen steel.