JSW Steel and Japan's JFE to Invest ₹5,845 Crore to Boost Electrical Steel Output
JSW Steel Limited, in strategic partnership with Japan’s JFE Steel Corporation, has announced a significant investment of ₹5,845 crore (approximately $669 million) to expand the production capacity of grain-oriented electrical steel (GOES) in India. This expansion aligns with growing domestic and global demand for high-efficiency electrical steel used in transformers, electric vehicles, and renewable energy sectors.
Key Highlights of the Expansion Plan
Vijayanagar Plant (Karnataka): Capacity to be increased from the originally planned 62,000 tons per annum to 100,000 tons, with commissioning scheduled by FY2028.
Nashik Plant (Maharashtra): Production capacity to grow five-fold from 50,000 to 250,000 tons per annum, with phased commissioning from FY2028. The facility, acquired from thyssenkrupp, brings advanced technology into the joint venture.
The combined capacity after expansion will be 350,000 tons per annum, making JSW JFE the largest integrated GOES producer in India.
Strategic Importance
This investment supports national initiatives like Make in India and Atmanirbhar Bharat by fostering domestic manufacturing of specialized steel products.
The focus on GOES addresses critical demand from sectors driving India’s energy transition, including renewable energy infrastructure, electric mobility, and AI data centres.
JSW Steel aims to reduce imports by making India a global hub for high-grade electrical steel, thus enhancing self-reliance in this key industrial input.
Statements from Leadership
Jayant Acharya, Joint Managing Director & CEO of JSW Steel, remarked, “India’s green energy transformation and digital infrastructure needs are fueling demand for electrical steel. This investment reflects our commitment to building future-ready steel capabilities supporting national and global priorities.”
The acquisition of Nashik facility represents a strategic move to leverage cutting-edge technology and expand JSW’s value-added product portfolio.
About JSW Steel and JFE Steel
JSW Steel is India’s leading integrated steel manufacturer with a consolidated capacity of 35.7 million tons per annum. It plans to expand capacity to 43.4 MTPA in the next three years.
JFE Steel Corporation is a major global steelmaker known for technology leadership and high-value products.
Their joint venture, JSW JFE Electrical Steel Private Limited, focuses on manufacturing advanced electrical steel products to meet evolving market needs.
Frequently Asked Questions (FAQ) About JSW-JFE Electrical Steel Investment
Q1: How much are JSW and JFE investing in electrical steel capacity expansion?
They are investing approximately ₹5,845 crore (~$669 million).
Q2: What is grain-oriented electrical steel (GOES) used for?
It is primarily used in electrical transformers, motors, and energy-efficient electrical components.
Q3: Where are the production facilities being expanded?
Vijayanagar (Karnataka) and Nashik (Maharashtra).
Q4: When will the expanded capacities be commissioned?
Phased commissioning is planned starting FY2028.
Q5: What will be the total GOES production capacity after expansion?
The capacity will increase to 350,000 tons per annum.
Q6: How does this investment support India’s national goals?
By enabling import substitution, supporting renewable energy, electric mobility, and digital infrastructure development.
Published on: August 4, 2025
Published by: PAVAN
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