JSW Steel Ltd has announced a new strategic joint venture with Japan’s JFE Steel Corporation. Under this agreement, the steel business undertaking of Bhushan Power and Steel Limited (BPSL), a JSW subsidiary, will be transferred to a 50:50 joint venture through a slump sale valued at Rs 24,483 crore.
As part of the deal, JFE Steel will invest Rs 15,750 crore in two phases to acquire a 50 per cent stake in the new entity.
JSW Steel Targets Long-Term Expansion
The move marks an important step for JSW Steel as it looks to expand capacity and secure long-term growth opportunities in India. The company has set a target of achieving 50 million tonnes per annum of steelmaking capacity by FY2031.
JSW believes the Indian market offers significant long-term potential and aims to strengthen its position across business cycles. JSW acquired BPSL in 2021 through the insolvency process and has since improved its operations. The unit, which earlier had a capacity of 2.75 MTPA, now operates at 4.5 MTPA and employs around 25,000 people.
By bringing JFE on board, JSW plans to monetise part of its holding and use the proceeds to support its wider growth plans while retaining a long-term stake in the JV.
JFE Steel’s Vision for the New Phase
Announcing the partnership, Jayant Acharya, Joint Managing Director and CEO of JSW Steel, said, “We are delighted to announce this strategic joint venture with JFE Steel for our BPSL business undertaking. JFE has been a trusted partner for JSW Steel since 2009. 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.”
JFE Steel President and CEO Masayuki Hirose also highlighted the next phase of collaboration. He said, “Since we signed the strategic alliance agreement with JSW in 2009, we have engaged in various collaborations, including technology licensing and joint ventures. Our relationship is now entering a new phase. By jointly operating an integrated steel plant in India with JSW, we aim to contribute to the growth of both companies and the Indian steel industry.”
Capacity Profile of JSW and JFE
JSW Steel currently has a consolidated crude steel capacity of 35.7 MTPA, including 1.5 MTPA in the US. Its Vijayanagar facility remains the largest single-location steel plant in India. The company plans to expand total capacity to 43.4 MTPA over the next three years.
JFE Steel, one of the world’s major steel producers, operates multiple steelworks in Japan and has global affiliates. It reported consolidated crude steel output of 23.20 million tonnes for FY25.
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