The acquisition will enable the consortium of JSW and JFE to manufacture grain-oriented electrical steel in the country, enabling import substitution and taking another step towards a self-reliant India.

Oct 22, 2024

JSW Steel Limited, in collaboration with Japan’s JFE Steel Corporation, has entered into a share purchase agreement to acquire 100 percent of equity interest in German engineering group thyssenkrupp’s specialty steel unit in Nashik, Maharashtra, for INR 4,051 crore. 

JSW Steel said in a statement that the 50:50 joint venture, known as Jsquare Electrical Steel Nashik, will also secure technology licenses or transfers from thyssenkrupp Electrical Steel (tKES) India, one of the first manufacturers of grain-oriented electrical steel (GOES) in the country. The all-cash deal is expected to be completed within eight months, subject to regulatory approvals.

The leading steel manufacturer and a flagship company of the JSW Group said in a statement that the transaction aimed at enhancing production of electrical steel in India.

“The market for GOES is growing rapidly. This acquisition will enable the consortium of JSW and JFE to manufacture this product in India and supply it to customers in India and globally, enabling import substitution and taking another step towards a self-reliant India,” Jayant Acharya, joint managing director and chief executive of JSW Steel, said in a statement.

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The Sajjan Jindal-owned JSW and JFE had formed a joint venture – JSW JFE Electrical Steel Private Limited in February, 2024, to make electrical steel in India. The two companies committed to investing INR 5,500 crore to set up a manufacturing unit in Karnataka, which is expected to commence production by FY27.