JSW Steel Limited has announced a 50:50 joint venture (JV) with JFE Steel Corporation, Japan, to establish JSW JFE Electrical Steel Private Limited, a company focused on producing grain-oriented electrical steel in India. The manufacturing base will be in Karnataka's Bellary with a planned investment of Rs 5,500 crore.
A groundbreaking ceremony took place on February 12 and the production is slated to begin in fiscal year 2027, with plans for further capacity expansion to meet the growing demand for this steel type in India, the steelmaker said in an exchange filing on February 13.
The JV aims to address the rising domestic demand for such steel, JSW said highlighting that grain-oriented electrical steel is crucial for energy-efficient transformers.
"This collaboration is a milestone development, as it would be the first company to have end-to-end manufacturing of grain oriented electrical steel products in India. The JV aspires to cater to the surging domestic demand for grain oriented electrical steel and contribute significantly to the country's energy infrastructure," said JSW Steel in a statement.
Grain-oriented electrical steel plays a pivotal role in the production of energy-efficient transformers. Whether in laminated, wound, or punched sheet form, it serves as the essential core material for distribution transformers, power transformers, and small transformers.
The global grain-oriented electrical steel market size is projected to grow from $12.47 billion in 2023 to $18.81 billion by 2030, according to a research report from Fortune Business Insights. This is due to rising demand for electrical steel from the automotive industry for application in electric vehicles (EV).
Recently, the JSW Group has signed a memorandum of understanding (MoU) with the government of Odisha for electric vehicle and its battery manufacturing project at Cuttack and Paradip. The company will invest Rs 40,000 crore for the mega manufacturing plants.
The group plans to invest Rs 25,000 crore in Cuttack for the electric vehicle and its battery manufacturing complex, while the rest Rs 15,000 crore will be invested in the EV components manufacturing facility in Paradip.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
