JSW and JFE Form ₹24,483 Cr JV to Drive Steel Growth

JSW Steel has forged a strategic joint venture alliance with JFE Steel Corporation from Japan (JFE). In the transaction, the Steel business segment of Bhushan Power and Steel (BPSL), a subsidiary of JSW, will be moved to a 50:50 joint venture with JFE through a slump sale for a cash amount of Rs 24,483 crore. JFE will put in a total of Rs 15,750 crore across two tranches, acquiring a 50% share in the joint venture.

JSW is a development-focused company aiming for a steel-making capacity of 50mtpa in India by FY 2031 and is enthusiastic about the potential opportunities ahead. The Company is confident that India offers a long-term growth opportunity and aims to ensure it is strategically positioned to take advantage of this potential. The current transaction seeks to ensure the Company's growth in a financially responsible way, allowing it to chase its goals throughout various business cycles.

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JSW purchased BPSL in 2021 via an IBC process and subsequently achieved a successful turnaround. A sick unit that operated at 2.75 mtpa now thrives as a successful business with a boosted capacity of 4.5 mtpa, providing jobs for 25,000 individuals.

By means of this transaction, the Company will capitalize on a portion of its stake in BPSL, to expedite the growth of JSW. In the process, the Company will engage JFE, a reliable, long-term strategic partner who will provide technological expertise, and combined with JSW Steel's project execution skills and operational excellence, will enhance value for the joint venture. JSW will maintain its investment and engage in the future value generation within the joint venture.