According to a stock exchange filing on Tuesday, JSW Steel said that it will establish a 50:50 joint venture with the Japan-based JFE Steel Corporation and invest Rs 5,500 to establish a plant in Karnataka.
Bellary, Karnataka will serve as the production basis for the new business, which will be called JSW JFE Electrical Steel Private Limited. Production would probably start in FY27, according to the corporation. It might increase the capacity even more to satisfy India’s rising need for grain-oriented electrical steel.
As the first firm to have Grain Oriented Electrical Steel products manufactured end-to-end in India, this collaboration is a significant development. The JV Company hopes to make a major contribution to the nation’s energy infrastructure in addition to meeting the growing domestic demand for grain-oriented electrical steel, according to a statement from JSW Steel.
The fundamental component of distribution transformers, power transformers, and compact transformers is grain-oriented electrical steel.
JSW Steel released its Q3 financial results in January. Due to strong domestic demand, the steel company’s consolidated net profit increased significantly, hitting Rs 2,450 crore in the December quarter of 2023–2024. Compared to the net profit of Rs 474 crore during the same time last year, this is a five-fold increase. Additionally, quarterly revenue increased year over year to Rs 42,134 crore from Rs 39,322 crore.
“The strong performance was driven by capacity utilisation rising to 94 percent during the quarter vs 89 percent in Q2 FY24 at the Indian operations,” the business stated in a statement.
JSW Steel is the principal business unit of the diverse JSW Group, which is valued at USD 23 billion in total. The conglomerate works in a number of industries, including as venture capital, sports, energy, paints, cement, and infrastructure.
Furthermore, JSW Group and the Government of Odisha have inked a Memorandum of Understanding (MoU) for the establishment of an Integrated Electric Vehicle (EV) and EV Battery Manufacturing Project in Cuttack and Paradip, Odisha, with a ₹40,000 crore investment. It is anticipated that the massive project, the first of its sort in the eastern state, will generate 11,000 jobs.
A 50 GWH EV battery plant, EVs, a lithium refinery, a copper smelter, and other component manufacturing units make up the project.
In Naraj, Cuttack, JSW Group plans to establish an EV and EV Battery Manufacturing Project. A source acquainted with the project stated that the world-class, cutting-edge technology-based Battery Manufacturing project, with a 50 GWH capacity, “will be the world’s largest single location project in the sector.”
