- JSW and JFE form a joint venture through the BPSL merger worth ₹24,483 crore.
- JFE invests ₹15,750 crore for an equal stake in JSW Sambalpur Steel venture.
- Collaboration boosts capacity and strengthens growth in India’s steel industry.
JSW Steel will establish a 50:50 joint venture with Japan's JFE Steel Corporation by merging the steel operations of Bhushan Power and Steel Limited (BPSL) into a new company for ₹24,483 crore. JFE announced in a statement that it will invest ₹15,750 crore in two parts to obtain 50% of the joint venture.
JSW will transfer BPSL’s steel operations to JSW Sambalpur Steel Limited via a slump sale. JSW Kalinga Steel Limited will conduct JSW Sambalpur, the company where JFE plans to acquire its 50 percent share. The deal depends on approvals from shareholders, authorities, and the Competition Commission of India.
In 2021, BPSL was acquired by JSW during the insolvency procedure. The Odisha-based facility has boosted its crude steel capacity from 2.75 mtpa to 4.5 mtpa since then. JSW noted that the deal will enable it to monetize a portion of its stake and support future growth toward a capacity of 50 mtpa by FY31.
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Jayant Acharya, the joint managing director and CEO of JSW Steel, stated that the collaboration merges JSW’s operational strengths with JFE’s technological expertise, “Today’s announcement brings together JSW’s expertise in India with JFE’s technological strengths, and will enable the joint venture to realise its growth potential and produce a variety of value-added steels,” he said.
Masayuki Hirose, president and CEO of JFE Steel, stated that the joint venture signifies the next stage of collaboration between the firms, “I am confident that by leveraging our technological strengths and jointly operating an integrated steel plant in India with JSW, we will not only contribute to the further growth of both companies but also make a contribution to the development of the Indian steel industry,” he said.