JSW JFE Electrical Steel Pvt Ltd has finalized the acquisition of thyssenkrupp Electrical Steel India Pvt Ltd (tkES India) for Rs 40.51 billion.
This move enables JSW-JFE to enter the grain-oriented electrical steel (GOES) business, aligning with their plans to expand into this crucial sector. tkES India, based in Nashik, Maharashtra, is one of India’s pioneers in GOES manufacturing.
The acquisition is being carried out through Jsquare Electrical Steel Nashik Pvt Ltd, a wholly-owned subsidiary of JSW JFE Electrical Steel Pvt Ltd (J2ES), a 50:50 joint venture between JSW Steel Ltd (OP Jindal Group) and Japan’s JFE Steel Corporation. This deal will provide JSW and JFE with instant market access and an integrated system for GOES production and sales in India.
J2ES was established in February 2024 with the goal of developing an integrated manufacturing system for GOES in India, and full production is expected by 2027. Through this acquisition, the companies aim to accelerate this process and immediately enter the market with advanced technology capabilities.
GOES, also known as cold-rolled grain-oriented (CRGO) steel, is essential for transformers and is produced by a limited number of companies globally. India has historically relied on imports for CRGO steel. tkES India’s Nashik plant, one of thyssenkrupp’s three global facilities producing CRGO steel, has a capacity of 50,000 tonnes per year, serving the domestic market and exporting to 22 countries.
Thyssenkrupp Electrical Steel India began its shift toward CRGO production in 2018, having previously manufactured other steel grades like carbon steel and non-grain-oriented electrical steel.