JSW Steel Ltd shares edged up over 1.3 per cent on Monday, August 4, to hit Rs 1,041.30, after the company announced a major expansion plan in collaboration with Japanese steel giant JFE Steel Corporation.
The partners will jointly invest Rs 5,845 crore to increase their cold rolled grain-oriented (CRGO) electrical steel capacity to 350,000 tons per annum (TPA) across two Indian plants.
The capacity expansion will be carried out through their joint ventures, JSW JFE Electrical Steel Private Limited (Vijayanagar, Karnataka) and JSW JFE Electrical Steel Nashik Private Limited (Maharashtra). The Nashik-based entity was formerly known as thyssenkrupp Electrical Steel India.
Plant-wise capex breakup: Vijayanagar gets Rs 1,545 crore, Nashik to receive Rs 4,300 crore
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Vijayanagar CRGO unit: Planned capacity to be enhanced from 62,000 TPA to 100,000 TPA, with an additional investment of Rs 1,545 crore.
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Nashik CRGO plant: Current capacity of 50,000 TPA will be ramped up to 250,000 TPA. The project cost is pegged at Rs 4,300 crore, with commissioning expected in FY2028.
Together, this will raise the total CRGO capacity of JSW-JFE’s Indian units to 3.5 lakh TPA, meeting the rapidly growing domestic demand and reducing reliance on imports.
Total CRGO investments now stand at Rs 15,560 crore
With this fresh capex, JSW Steel’s cumulative investments in its CRGO business have touched Rs 15,560 crore, including the earlier Rs 5,557 crore announced for Vijayanagar and the acquisition cost of the Nashik facility.
The expansion aligns with national missions like Make in India and Atmanirbhar Bharat, and will supply critical input for industries like renewable energy, e-mobility, EV charging infrastructure, AI and data centres, and energy-efficient transformers.
Jayant Acharya, Joint MD & CEO of JSW Steel, said, “India’s green energy transformation, decarbonisation and digital infrastructure are driving massive demand for high-grade electrical steel. This investment with our long-standing partner JFE reaffirms our commitment to building strategic and future-ready steel capabilities in India.”
Acharya further noted that the project would support import substitution, cater to domestic and export markets, and strengthen India’s position in the global electrical steel value chain.
Stock outlook
At 1:15 am, JSW Steel shares were trading at Rs 1,043.40, up 1.5 per cent, with over 6.99 lakh shares changing hands on NSE.
Analysts believe the capex signals strong demand visibility and strategic foresight, likely to enhance the company’s margin profile in value-added segments going forward.
