AgenciesRelated
Mumbai: JSW Steel and its partner Japan's JFE Steel will soon be taking a call on a billion-dollar investment to jointly set up a specialty steel manufacturing facility in India that would help the country reduce its import reliance for the high-end alloy, a top executive said.
A feasibility study commissioned by the two companies last year for manufacturing grain oriented electrical steel in India was close to completion and they would be ready to take a call on the project by December, according to Seshagiri Rao, joint managing director of JSW Steel. "It is a highly specialised steel and is 100% imported into India today," he said. "It has a huge market in India that is fast growing."
If the companies go ahead with the project, it will entail an investment of over $1 billion, ET has learnt. The project will be implemented at the Vijayanagar complex of JSW Steel in Karnataka.
Grain-oriented electrical steel is used to make energy efficient transformers, generators and motors. It will receive the highest level of support under the government's Rs 6,322-crore production-linked incentives (PLI) scheme. Japan is a leading exporter of electrical steel.
JFE Steel - the second-largest steelmaker in Japan - is a 15% shareholder in JSW Steel through its European subsidiary. It has long been a technology partner for the Indian steelmaker. An alliance with the Japanese steelmaker helped JSW break into the lucrative automotive steel market and today the company is one of the largest suppliers of steel to Indian automakers.
JFE Holdings President Koji Kakigi told Reuters earlier this month that the company was thinking of developing a business in the "higher-end field" with JSW Steel using JFE's technology.
The specialised steel joint venture will be the first joint venture of the companies outside of JFE's investment in JSW.
The shares of JSW Steel closed 3.23% lower on the BSE on Wednesday at ₹616.45 compared to a 0.89% decline in Sensex.
A feasibility study commissioned by the two companies last year for manufacturing grain oriented electrical steel in India was close to completion and they would be ready to take a call on the project by December, according to Seshagiri Rao, joint managing director of JSW Steel. "It is a highly specialised steel and is 100% imported into India today," he said. "It has a huge market in India that is fast growing."
If the companies go ahead with the project, it will entail an investment of over $1 billion, ET has learnt. The project will be implemented at the Vijayanagar complex of JSW Steel in Karnataka.
Grain-oriented electrical steel is used to make energy efficient transformers, generators and motors. It will receive the highest level of support under the government's Rs 6,322-crore production-linked incentives (PLI) scheme. Japan is a leading exporter of electrical steel.
JFE Steel - the second-largest steelmaker in Japan - is a 15% shareholder in JSW Steel through its European subsidiary. It has long been a technology partner for the Indian steelmaker. An alliance with the Japanese steelmaker helped JSW break into the lucrative automotive steel market and today the company is one of the largest suppliers of steel to Indian automakers.
JFE Holdings President Koji Kakigi told Reuters earlier this month that the company was thinking of developing a business in the "higher-end field" with JSW Steel using JFE's technology.
The specialised steel joint venture will be the first joint venture of the companies outside of JFE's investment in JSW.
The shares of JSW Steel closed 3.23% lower on the BSE on Wednesday at ₹616.45 compared to a 0.89% decline in Sensex.
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