JSW Steel, in partnership with Japan’s JFE Steel Corp, has finalized the acquisition of Thyssenkrupp Electrical Steel (TKES) India for Rs 40.51 billion. The 50:50 joint venture, known as Jsquare Electrical Steel Nashik, will also secure technology licenses or transfers from Thyssenkrupp as part of the transaction.

TKES India, based in Nashik, specializes in manufacturing grain-oriented electrical steel (GOES), a crucial material used in transformers and generators. Its products have been certified by major utilities and original equipment manufacturers (OEMs) in India, including the Power Grid Corporation of India. Additionally, the unit exports electrical sheets to global markets.

The plant, originally established in 1995 by Raymond Ltd to produce electrical and carbon steel, was acquired by Thyssenkrupp in stages, with the German company taking full control by 2000.

JSW Steel CEO Jayant Acharya highlighted the strategic importance of the deal, stating, “The demand for GOES is rising rapidly. This acquisition enables the JSW-JFE consortium to produce these essential materials domestically and cater to both Indian and international markets.”

The joint venture aims to leverage this acquisition to gain immediate market access and meet growing demand for electrical steel. In 2023, JSW and JFE formalized their collaboration to manufacture and sell cold-rolled, grain-oriented electrical sheets, following a 2021 memorandum of understanding to explore the venture’s feasibility.

Further expanding their presence, the consortium is investing ?5,500 crore to build a new plant in Bellary, Karnataka, with production slated to begin in FY27. These electrical steel products, containing silicon and aluminium, play a key role in improving transformer efficiency by minimizing energy losses in power transmission and distribution systems.

Avendus Capital advised on the acquisition.

(ET)