JSW Steel has announced that it will be forming a 50:50 joint venture with Japan's JFE Steel Corporation. The company will invest Rs 5,500 to establish a plant in Karnataka, India. The manufacturing base will be located in Bellary, Karnataka, and will be named JSW JFE Electrical Steel Private Limited. Production is expected to begin in FY27, with the potential to expand capacity in order to meet the growing demand for grain-oriented electrical steel in India. This will be the first company to have end-to-end manufacturing of grain-oriented electrical steel products in India. Grain-oriented electrical steel is a crucial core material for distribution, power, and small transformers.
JSW Steel expressed its excitement over the collaboration, stating that 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.
In January, JSW Steel reported its Q3 earnings, and the company saw a significant increase in consolidated net profit, reaching Rs 2,450 crore in the December quarter of 2023-24. This was driven by robust domestic demand, marking a five-fold rise compared to the net profit of Rs 474 crore in the corresponding period of the previous year. Quarterly income also rose to Rs 42,134 crore, up from Rs 39,322 crore year-on-year.
"The strong performance was driven by capacity utilization rising to 94 percent during the quarter vs. 89 percent in Q2 FY24 at the Indian operations," the company said in a statement.
JSW Steel is the main business entity within the diversified JSW Group, which has a total valuation of USD 23 billion. The conglomerate is involved in various sectors, including energy, infrastructure, cement, paints, sports, and venture capital.
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