JSW Steel said that Jsquare Electrical Steel Nashik, a subsidiary of the company's joint venture entity, has entered into a share purchase agreement to acquire 100% of equity interest in thyssenkrupp Electrical Steel India.
The Mumbai-based steel maker has also entered into other agreements including for licensing/transfer of associated technology package from thyssenkrupp group.
The total purchase consideration for the transaction is Rs 4,051.40 crore, subject to closing adjustments.
Jsquare Electrical Steel Nashik is a wholly owned subsidiary of JSW JFE Electrical Steel (J2ES), which is a 50:50 joint venture between JSW Steel and JFE Steel Corporation (JFE).
tkES India is one of the first manufacturers of grain-oriented electrical steel (GOES) in India with its facility located in Nashik, Maharashtra. The acquisition provides the Company with access to cutting-edge technology thereby aligning with its strategy of enhancing its value-added portfolio.
In February 2024, JFE Steel and JSW established JSW JFE Electrical Steel for the production of GOES, with the aim of establishing an integrated manufacturing system for GOES in India. J2ES is expected to commence full production in 2027.
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Through this acquisition, JSW and JFE shall achieve instant market access and can promptly establish an integrated system from manufacturing to sales of GOES in India.
Jayant Acharya, joint managing director & CEO, JSW Steel said: The market for GOES is growing rapidly. This acquisition will enable the consortium of JSW and JFE to manufacture this product in India and supply it to customers in India and globally, thereby also enabling import substitution and hence taking another step towards a self-reliant India.
JSW Steel, the flagship business of the diversified JSW Group, is India's leading integrated steel company.
The company had reported 64.29% decline in consolidated net profit to Rs 867 crore in Q1 FY25 as compared with Rs 2,428 crore posted in same quarter last year. Revenue from operations rose 1.73% year on year (YoY) to Rs 42,943 crore in the quarter ended June 2024.
The scrip had gained 1.25% to end at Rs 992.40 on the BSE on Friday.
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