JSW Steel Ltd on Tuesday, February 13, announced that it has formed a 50:50 JV with Japan's JFE Steel Corporation for the production of grain-oriented electrical steel in India.
Grain-oriented electrical steel is crucial in the manufacturing of energy-efficient transformers. Whether in laminated, wound, or punched sheet form, grain-oriented electrical steel serves as the essential core material for distribution transformers, power transformers and small transformers.
The new company JSW Electrical Steel Private Limited is being renamed as JSW JFE Electrical Steel Private Limited. The JV entity, with a planned investment of ₹5,500 crore, will be based in Bellary district of Karnataka, JSW Steel said in a stock exchange filing.
The facility aims to start production in the fiscal year 2027 and intends to expand its capacity to meet the increasing market demand for grain-oriented electrical steel in India, JSW Steel informed the stock exchanges.
This collaboration is a milestone development, marking the first company in India to have end-to-end manufacturing of grain- oriented electrical steel products.
The JV company aims to meet the rising domestic demand for grain- oriented electrical steel and make a significant contribution to the country's energy infrastructure. A groundbreaking ceremony for this partnership took place on February 12.
The leadership teams of both companies, including Kitano, President and CEO of JFE Steel; Ogawa, Executive Vice President of JFE Steel; Sajjan Jindal, Chairman and Managing Director of JSW Steel; and Jayant Acharya, Joint Managing Directorand CEO of JSW Steel, and other senior executives, attended the event.
JSW Steel Ltd, led by Sajjan Jindal, reported a remarkable 409.28% year-on-year increase in consolidated net profit, reaching ₹2,415 crore for the third quarter ending December 31, 2023. In the same quarter of the previous year, JSW Steel recorded a net profit of ₹474 crore.
The company's consolidated revenue from operations rose by 7.2% to ₹41,940 crore compared to ₹39,134 crore in the corresponding period of the previous fiscal year.
The net debt surged to ₹879,221 crore during the quarter, mainly due to additional investments in working capital.
At 12:10 PM, shares of JSW Steel were trading flat at ₹810.15 apiece, down 0.03%, on BSE.
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