Key Highlights
- JSW Steel forms 50:50 joint venture with JFE Steel Corporation.
- BPSL steel business to be transferred via slump sale valued at INR 24,483 crore.
- JFE to invest INR 15,750 crore in two tranches for 50 percent stake.
- Joint venture equity value pegged at INR 31,500 crore.
- BPSL capacity increased from 2.75 mtpa to 4.5 mtpa after JSW acquisition.
- Partnership expands value added steel capabilities with JFE technology.
- Deal strengthens JSW balance sheet and supports 50 mtpa target by FY 2031.
JSW Steel Ltd announced a major strategic collaboration with Japan based JFE Steel Corporation through the creation of a 50:50 joint venture valued at INR 31,500 crore. The company confirmed that the steel business undertaking of Bhushan Power and Steel Limited will be transferred to the joint venture via a slump sale worth INR 24,483 crore.
As part of the agreement, JFE Steel will invest INR 15,750 crore in two tranches to secure a 50 percent stake in the joint venture. JSW stated that this partnership supports its long term expansion roadmap, including its objective of reaching 50 million tonnes per annum of steel making capacity in India by FY 2031.
JSW Steel had acquired BPSL in 2021 and has since executed a successful turnaround. The plant, earlier operating at 2.75 mtpa, now functions at 4.5 mtpa and employs about 25,000 people. By monetising part of its ownership in BPSL, JSW aims to accelerate growth while remaining invested in the venture.
The collaboration is expected to strengthen value added steel production by combining JSW’s execution capabilities with JFE’s advanced technological expertise. JSW highlighted that the financial inflow from this transaction will strengthen its balance sheet and support future investment plans.
The announcement also reiterated JSW Steel’s broader sustainability and operational goals, including carbon reduction targets, responsible steel certification expansion, and continued capacity enhancement across its facilities.