Jsquare Electrical Steel Nashik Pvt Ltd has completed the acquisition of thyssenkrupp Electrical Steel India Pvt Ltd (tkES India).
According to a release issued by JSW Steel, Jsquare Electrical Steel Nashik Pvt Ltd completed the acquisition of 100 per cent equity interest in tkES India, and the associated technology package from thyssenkrupp Group has been licensed/transferred to the company, for a total consideration of Rs.4158.60 crore.
Jsquare Electrical Steel Nashik Pvt Ltd is a wholly-owned subsidiary of JSW JFE Electrical Steel Pvt Ltd (J2ES), in turn a 50:50 joint venture between JSW Steel Ltd and JFE Steel Corporation of Japan.
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 JSW Steel Company with access to cutting-edge technology thereby aligning with its strategy of enhancing its value-added portfolio, the release said.
In February 2024, JFE Steel and JSW established J2ES, with the aim of setting up an integrated greenfield project for manufacturing grain oriented electrical steel (GOES) in India by 2027. Now, through this acquisition, J2ES has been able to achieve instant market access and can promptly establish an integrated system from manufacturing to sales of GOES in India, the release said.
Leadership position
Jayant Acharya, Joint Managing Director & CEO, JSW Steel said, “We are delighted to have completed this transaction which will set us up for a leadership position in the rapidly growing GOES market in India. This is in line with JSW’s strategic intent to increase our share of value-added products in the portfolio and is also a step towards a self-reliant India.”
Chronology of events
- May 2021: JSW Steel and JFE Steel Corporation sign an MoU to conduct a feasibility study of a potential local manufacturing facility for grain-oriented electrical steel (GOES) in India.
- February 2024: “JSW JFE Electrical Steel Pvt Ltd” formed as a 50:50 joint venture between JSW Steel Ltd and Japan-based JFE Steel Corporation. Groundbreaking ceremony of new greenfield facility held at Vijaynagar, Karnataka.
- October 2024: JSW JFE Electrical Steel Pvt Ltd (J2ES) enters into a formal agreement to fully acquire thyssenkrupp Electrical Steel India Pvt Ltd (tkES India)
- December 2024: Acquisition of tkES India by J2ES gets approval from Competition Commission of India (CCI)
- January 2025: J2ES completes acquisition of tkES India through Jsquare Electrical Steel Nashik Pvt Ltd, a wholly-owned subsidiary of J2ES
Featured photograph (source: JSW Steel Ltd Annual Report, 2023-24) is purely for representation
