Jindal Stainless plans to consolidate group units

MUMBAI: Jindal Stainless group is looking to consolidate its group units — Jindal Stainless, its Odisha unit, and Jindal Stainless (Hisar) — a move that is expected to unlock value for shareholders and create synergies, a senior executive of the company said on Monday.

The initiation of the consolidation move is expected to take place once the group’s 1.8 MT Odisha plant gets out of the last leg of the corporate debt restructuring (CDR) by March, and is given a clean chit by the State Bank of India, the lead lender in the consortium of banks that have lent to the company.

“There are no immediate plans but we would like to look at it in the future as it will create a more stable company and there will be tremendous value that will be created for the shareholders,” Abhyuday Jindal, MD of Jindal Stainless, told ET.


The re-merging of the group companies will form the third step in creating a more valuable company after it split Jindal Stainless (Hisar), the parent company, into JSHL and Jindal Stainless, under an asset monetisation plan (AMP) in 2014 to protect Hisar, the “stronger” unit on a standalone basis, from group's consolidated liabilities.

The AMP supported the company in achieving a turnaround in profits. It will be followed, Jindal said, by the company “hopefully” coming out of the debt restructuring, and then eventually re-merging the two units.