JSW Steel has announced a new joint venture with Japan's JFE Steel Corporation, sharing investments worth Rs 5,500 crore to establish a plant in Karnataka. The company disclosed this development in a filing with the stock exchange on Tuesday.
The upcoming venture, named JSW JFE Electrical Steel Private Limited, will be headquartered in Bellary, Karnataka. Production operations are slated to commence by the fiscal year 2026-27, with potential expansion in the pipeline to meet the rising demand for grain-oriented electrical steel across India.
In a statement, JSW Steel highlighted the significance of this collaboration, emphasizing its pioneering role as the first entity to undertake end-to-end manufacturing of Grain Oriented Electrical Steel products in India. The joint venture aims to address the escalating domestic need for such steel and make substantial contributions to the nation's energy infrastructure.
Grain-oriented electrical steel serves as a crucial material for various transformers, including distribution transformers, power transformers, and smaller variants.
JSW Steel recently reported its Q3 earnings for the fiscal year 2023-24. The company witnessed a remarkable surge in consolidated net profit, reaching Rs 2,450 crore in the December quarter, propelled by strong domestic demand. This marks a five-fold increase compared to the net profit of Rs 474 crore recorded in the same period the previous year. Quarterly revenue also experienced growth, climbing to Rs 42,134 crore from Rs 39,322 crore year-on-year.
Explaining the driving factors behind this robust performance, the company attributed it to the increased capacity utilization, which rose to 94% during the quarter compared to 89% in the preceding quarter of FY24.
JSW Steel operates as the flagship entity within the diversified JSW Group, which holds a total valuation of USD 23 billion. The conglomerate is engaged in various sectors, including energy, infrastructure, cement, paints, sports, and venture capital.
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