JSW Steel inks JV with JFE Steel, to invest ₹5,500 cr in K'taka plant

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JSW Steel inks JV with JFE Steel, to invest ₹5,500 cr in K'taka plant

Large Corporate 13 Feb 2024 12:40 PM IST Economic Times

JSW Steel, a leading manufacturer of steel products, has declared in a stock exchange filing that it would form a 50:50 joint venture (JV) with Japan's JFE Steel Corp and invest ₹5,500 to establish a plant in Karnataka. Bellary, Karnataka will be the site of the new company's manufacturing facility, which will be called JSW JFE Electrical Steel Private Ltd. According to the corporation, production is anticipated to begin in FY27. The capacity to supply India's rising need for grain-oriented electrical steel may be further increased.

"This collaboration is a milestone development, as it would be the first company to have end-to-end manufacturing of Grain Oriented Electrical Steel products in India. The JV Company aspires to cater to the surging domestic demand for Grain Oriented Electrical Steel and contribute significantly to the country's energy infrastructure," JSW Steel said in a statement. Grain-oriented electrical steel is an essential core material for distribution transformers, power transformers, and small transformers.

JSW Steel in January reported its Q3 earnings. The steel company saw a significant increase in consolidated net profit, reaching ₹2,450 crore in the December quarter of 2023-24, driven by robust domestic demand. This marks a five-fold rise compared to the net profit of ₹474 crore in the corresponding period of the previous year. Quarterly income also rose to ₹42,134 crore from ₹39,322 crore year-on-year.

"The strong performance was driven by capacity utilisation rising to 94% during the quarter vs 89% in Q2 FY24 at the Indian operations," the company said in a statement. JSW Steel serves as the main business entity within the diversified JSW Group, which boasts a total valuation of $23 billion. The conglomerate is involved in various sectors, including energy, infrastructure, cement, paints, sports, and venture capital.

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JSW Steel inks JV with JFE Steel, to invest ₹5,500 cr in K'taka plant

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